In a bid to reduce China’s influence in Argentina, the Trump administration is reportedly pushing officials in Buenos Aires to restrict Beijing’s access to the country’s resources.
US Looks To Limit China’s Critical Minerals Access
Treasury Secretary Scott Bessent has been in talks with Argentina’s economic minister, Luis Caputo, about limiting China’s access to Argentina’s resources, including critical minerals, according to a report by The Wall Street Journal on Tuesday.
In addition, they have discussed granting the U.S. expanded access to the country's uranium supply, the report said.
These discussions are part of a broader effort to counter Beijing’s influence by encouraging Argentina to strike deals with American companies, particularly in sectors like telecommunications and infrastructure.
It comes at a time when the U.S. and Wall Street banks are working on a $40 billion bailout for Argentina. This includes a $20 billion currency swap with the Treasury Department and a separate $20 billion bank-led debt facility.
Argentine President Javier Milei faces mounting challenges to his sweeping economic reforms, as surging inflation, dwindling foreign reserves, and looming debt payments strain the country's finances ahead of key midterm elections on Sunday. His administration has turned to the U.S. for support, deepening ties with Donald Trump to bolster political backing and stabilize Argentina's fragile economy.
China Picks Latin America Over US For Soybean Trade
China is Argentina’s second-largest trading partner and the largest buyer of its agricultural exports.
Between January to September, it purchased 2.9 million tons of soybeans from Argentina, up 31.8% year-on-year, reported Reuters, citing China's General Administration of Customs data released on Monday. The data also showed that China purchased the maximum soybeans from Brazil, and none from the U.S., for the first time in seven years.
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Wall Street Banks Weigh Argentina Loan Risks
A separate report by the WSJ on Monday said that a consortium, including JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), and Goldman Sachs (NYSE:GS), is finding it challenging to assemble a $20 billion loan for financially distressed Argentina without taking on excessive exposure to the nation.
Argentina’s $20 billion currency swap with the U.S. Treasury Department was formalized on Monday.
However, Trump has made it clear that the U.S would not be “generous” to Argentina if President Milei loses the midterm elections.
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