China-Argentina Trade and Investment: Key Opportunities in 2025 and Beyond

Posted by Written by Yanyan Shang Reading Time: 6 minutes

China and Argentina maintain a strategic and evolving economic partnership, with trade and investment spanning key sectors such as agriculture, energy, and infrastructure. As Argentina deepens its engagement with China’s Belt and Road Initiative (BRI) and expands RMB settlement mechanisms, bilateral economic cooperation continues to grow. Despite macroeconomic challenges in Argentina, opportunities in lithium mining, renewable energy, and financial integration present new avenues for growth.

China and Argentina maintain a strategic economic relationship that continues to evolve amid global trade shifts. While Argentina faces macroeconomic hurdles, its collaboration with China in key sectors such as energy, infrastructure, and finance presents new opportunities for trade expansion and investment stability. Enhanced financial mechanisms, including RMB settlement, and joint efforts in sustainable development are shaping the future of bilateral cooperation.

This partnership, officially elevated to a comprehensive strategic relationship in 2014, has deepened over time. Argentina’s entry into China’s Belt and Road Initiative (BRI) in 2022 marked a milestone in long-term economic collaboration, focusing on infrastructure financing, energy projects, and trade facilitation.

Find Business Support
Navigate Tariff Risks by Diversifying Your Supply Chain and Markets across Asia

Amid global supply chain shifts, China and Argentina’s economic cooperation is becoming more strategic. China’s investments in lithium mining and renewable energy align with its global energy transition goals, while Argentina benefits from Chinese infrastructure projects and trade financing. As both nations navigate economic uncertainties, strengthening trade frameworks and investment strategies will be crucial for sustained economic growth.​

DOING BUSINESS IN CHINA EXPLORE IN-DEPTH INVESTMENT AND BUSINESS GUIDES.
Explore vital economic, geographic, and regulatory insights for business investors, managers, or expats to navigate China’s business landscape. Our Online Business Guides offer explainer articles, news, useful tools, and videos from on-the-ground advisors who contribute to the Doing Business in China knowledge. Start exploring

China-Argentina trade

In 2024, bilateral trade between China and Argentina totaled US$16.35 billion, reflecting a 6.2 percent decline from the previous year. However, this drop was significantly smaller than the 18.4 percent contraction in 2023, when economic turbulence in Argentina and shifting global demand led to a sharper downturn. Despite the decline, the slower rate of contraction suggests a stabilizing trade relationship, with China remaining Argentina’s second-largest trading partner.

China – Argentina Bilateral Trade (2019-2024)
Year Total Trade China exports (US$, billion) China imports (US$, billion) YoY change (%) China exports change (%) China imports change (%)
2019 14.27 6.88 7.39 19.51 -22.17 109.94
2020 13.89 7.08 6.81 -2.66 2.90 -7.85
2021 17.82 10.69 7.13 28.29 50.99 4.70
2022 21.36 12.77 8.59 19.87 19.46 20.48
2023 17.43 10.75 6.68 -18.40 -15.82 -22.23
2024 16.35 9.32 7.03 -6.20 -13.30 5.24

Source: International Trade Centre

China’s exports to Argentina reached US$9.32 billion, reflecting a 13.3 percent year-over-year drop. The decline was largely driven by weaker demand in Argentina amid currency fluctuations and import restrictions. China’s top exports included:

  • Electrical machinery and equipment (US$2.04 billion)
  • Nuclear reactors, boilers, and mechanical appliances (US$1.79 billion)
  • Organic chemicals (US$938.97 million)
  • Automobiles and parts (US$668.24 million)
  • Plastics and related products (US$410.44 million)
Top China Exports to Argentina in 2024
Category Value (US$, million)
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 2,043.82
Nuclear reactors, boilers, machinery, and mechanical appliances; parts thereof 1,786.80
Organic Chemicals 938.97
Vehicles other than railway or tramway rolling stock, and parts and accessories thereof 668.24
Plastics and articles thereof 410.44

Source: International Trade Centre

Meanwhile, China’s imports from Argentina rose by 5.24 percent to US$7.03 billion, buoyed by strong demand for agricultural and food products. Key imports included:

  • Meat and edible meat offal (US$2.22 billion)
  • Oil seeds and oleaginous fruits (US$2.09 billion)
  • Cereals (US$730.08 million)
  • Inorganic chemicals and rare-earth compounds (US$668.24 million)
  • Fish and seafood (US$602.89 million)​
Top China Imports from Argentina in 2024
Category Value (US$, million)
Meat and edible meat offal 2,219.08
Oil seeds and oleaginous fruits; miscellaneous grains, seeds, and fruit; industrial or medicinal plants; straw and fodder 2,088.59
Cereals 730.08
Inorganic chemicals; organic or inorganic compounds of precious metals, rare-earth metals, radioactive elements, or isotopes 668.24
Fish and crustaceans, mollusks, and other aquatic invertebrates 602.89

Source: International Trade Centre

While Argentina continues to enjoy a trade surplus with China in agricultural exports, the country’s foreign exchange controls and import restrictions have constrained imports of Chinese industrial goods. The widening trade deficit with China reflects Argentina’s reliance on commodity exports, which have remained resilient despite the country’s broader economic instability. Additionally, Argentina’s RMB settlement policy, which allows for trade transactions to be settled in the Chinese yuan, has helped facilitate trade but remains subject to government currency management measures.

Despite near-term trade fluctuations, China and Argentina’s economic partnership remains strategically significant, with trade diversification and investment cooperation likely to play a growing role in stabilizing future trade flows. Looking ahead, efforts to reduce trade imbalances and improve trade facilitation mechanisms will be critical to fostering long-term economic stability between the two nations.

China’s investment in Argentina

Find Business Support
Have a question? Contact our outbound direct investment team⟶

China’s direct investment in Argentina has experienced fluctuations in recent years, reflecting both global economic uncertainties and Argentina’s domestic challenges. In 2023, Chinese investment in Argentina recorded a net outflow of US$42.76 million, bringing the total investment stock down to US$1.82 billion, a decline from its peak of US$2.14 billion in 2021. This contraction was largely driven by Argentina’s high inflation, foreign exchange constraints, and shifting investment policies, which have introduced uncertainties for foreign investors.

China’s Direct Investment in Argentina, 2018 – 2023
Year Annual flow (US$, million) Year-end stock (US$, million)
2019 353.55 1,808.41
2020 401.24 1,992.66
2021 295.68 2,141.14
2022 59.19 2,134.49
2023 -42.76 1,821.20

Source: Ministry of Commerce PRC

Despite this short-term decline, Argentina remains a strategic investment destination for China, particularly in infrastructure, energy, and financial cooperation. Argentina’s participation in the BRI strengthens its position as a key destination for Chinese infrastructure and energy investments.

Sectoral distribution

  • Infrastructure: China has played a critical role in Argentina’s infrastructure modernization, particularly in railway development. Major projects include the Belgrano Railway upgrade and the San Martín Railway modernization, both of which are integral to Argentina’s domestic and regional logistics network. These projects enhance trade efficiency and connectivity, facilitating the export of agricultural goods.
  • Energy and mining: China’s investment in Argentina’s lithium sector has been a key driver of economic ties, given Argentina’s vast lithium reserves in the so-called “Lithium Triangle” region. Renewable energy projects, including solar farms and hydroelectric plants, have also seen significant Chinese involvement, such as the Cauchari Solar Park and the Kisé Hydroelectric Plant in Santa Cruz Province.
  • Financial cooperation: Beyond trade, the growth of the RMB settlement has fostered deeper financial ties between China and Argentina. The currency swap agreement has strengthened liquidity options for Argentine firms, while Chinese financial institutions such as ICBC Argentina are playing an increasing role in supporting investment financing and cross-border transactions.

Key bilateral agreements and cooperation frameworks

Belt and Road Initiative (BRI)

Argentina joined China’s BRI in 2022, followed by a cooperation plan in 2023, focusing on infrastructure, energy, and industrial modernization. Key initiatives include China-backed railway and port projects, renewable energy expansion, and agricultural modernization. Through BRI, Argentina gains critical funding and expertise to support economic growth.

Bilateral Investment Treaty (BIT)

On November 5, 1992, China and Argentina signed the Agreement on the Promotion and Reciprocal Protection of Investments, which entered into force on August 1, 1994. This treaty establishes a robust legal framework designed to protect and encourage investments between the two nations, thereby enhancing investor confidence and fostering bilateral economic cooperation.​

Double Taxation Avoidance Agreement (DTA)

In December 2018, China and Argentina signed the Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and on Capital and the Prevention of Tax Evasion and Avoidance. This agreement came into effect on November 26, 2024, and is applicable from January 1, 2025, onwards. Its primary objective is to prevent the same income or assets from being taxed by both countries, thereby promoting cross-border trade and investment.​

Trade settlement and RMB mechanism

Since May 2023, Argentina has fully transitioned to RMB settlement for trade with China, reducing reliance on the US dollar and easing foreign exchange pressures. A currency swap agreement between the People’s Bank of China and Argentina’s Central Bank enhances trade efficiency and financial stability.

China-Argentina opportunities and challenges

As global demand for renewable energy and electric vehicles rises, Argentina’s vast lithium reserves position it as a crucial supplier for China’s new energy sector. With nearly one-fourth of the world’s lithium resources, Argentina plays a strategic role in China’s supply chain for battery production and clean energy storage. Chinese investments in lithium extraction and processing facilities are expected to enhance resource security and support China’s energy transition goals.

Find Business Support
Seamlessly manage your operations across multiple countries in Asia

In addition, financial cooperation between China and Argentina is deepening, particularly with the expansion of the RMB trade settlement. The RMB swap agreement and local currency usage have helped Argentina alleviate foreign exchange constraints, streamline trade transactions, and enhance financial stability, creating a more favorable environment for bilateral trade and investment.

Nevertheless, Argentina’s persistent economic instability poses risks for foreign investors. High inflation, currency devaluation, and fiscal imbalances have led to policy uncertainty, making long-term investment planning more complex. Furthermore, import restrictions and shifting regulatory frameworks create challenges for Chinese businesses operating in Argentina. Foreign exchange controls, trade barriers, and evolving taxation policies can impact supply chain efficiency and business operations. To navigate these risks, Chinese investors must adopt robust risk management strategies, including currency hedging and flexible investment structures, to mitigate potential disruptions.

Also read:

About Us

China Briefing is one of five regional Asia Briefing publications, supported by Dezan Shira & Associates. For a complimentary subscription to China Briefing’s content products, please click here.

Dezan Shira & Associates assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Haikou, Zhongshan, Shenzhen, and Hong Kong. We also have offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE) and partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh, and Australia. For assistance in China, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.