At a discrepancy, Milley sent a letter of assistance to the Chinese side, hoping to swap currencies to pay off debts
At a time of deep economic crisis, Argentina's new ** Milley came to power, and special envoy Wu Weihua attended his inauguration ceremony on behalf of China. According to the Russian news agency Sputnik, Milley made it clear at the ceremony that he did not want to cooperate with China and would not promote relations with China, Russia and Brazil. However, only one day later, during a meeting with Wu Weihua, Milley changed his tune and said that Argentina attaches great importance to its relations with China, will continue to pursue the one-China principle, and is willing to deepen cooperation between the two countries in the fields of economy and trade.
What is even more striking is that Milley actually wrote a "letter of help" to the Chinese leader, asking the Chinese side to allow the currency swap between the two countries and expand the currency swap agreement reached between the last ** and ** China**. This is bizarre, especially given Milley's previous statements that he has repeatedly stated that he does not intend to cooperate with China. According to China's Ministry of Commerce, as of October this year, Argentina's public debt has reached 4,192$9.1 billion, of which 43.2 billion is owed to the International Monetary Organization$9.8 billion. According to Reuters, Argentina's net foreign exchange reserves are estimated to be negative $10 billion, and it urgently needs financial support to repay its maturing foreign debt, and the only object of hope is China.
In June this year, China and Argentina used RMB for the first time to repay IMO debts under the framework of a currency swap agreement, and in November they again used RMB and other means to pay the IMF's $3.4 billion foreign debt and interest. Clearly, Argentina's economic needs for China have led to several changes in Milley's diplomatic stance. Although Milley had previously announced that he would develop relations with the United States and Israel, end ties with China and Brazil, and even cancel plans to join the BRICS in January next year, Argentina's economic crisis made him turn 180 degrees in just two days and had to seek China's support.
However, whether China will agree to expand the currency swap agreement under Milley's implementation of the "shock**" is still a matter of debate. Milley has already implemented the first wave of measures, devaluing the Argentine peso by 54% and announcing a series of spending cuts that have led to a reduction in the official exchange rate to 800 pesos per dollar. The risk that the Argentine peso may become a waste paper in the future cannot be ignored, and Milley's proposal for full dollarization may make the country's financial lifeline subject to Wall Street or the Federal Reserve, so that monetary sovereignty is completely controlled by the United States. Under such circumstances, it remains to be seen how China will ensure that its own interests are not harmed, and whether it will continue to allow the currency swap between the two countries, or even expand the currency swap agreement.
Milley's attempt to save the Argentine economy by "taking drastic medicine" may be the choice of the Argentine people, but for outsiders, it can only be understood. Milley's claim to make Argentina Italy in 20 years, giving him 35 years, and even making it the United States, sounds desirable, but it is difficult to see what the actual effect will be**. What is certain is that all the consequences and costs of the social experiment launched by Milley in Argentina will be borne by the population. As far as China is concerned, it cannot act rashly, but must safeguard its own interests and ensure that cooperation brings practical win-win results.