Recently, Argentina elected a high-profile new Alberto Milley, who has been called "Trump-esque" and advocates nationalism and protectionism. More concern, however, is how he will deal with Argentina's $12 billion debt to China. Before asking this question, we must first understand the economic background of Argentina and the difficulties it faces.
Argentina, as a country rich in natural resources, has always faced difficulties due to its weak industrial base. Despite the country's free education, health care, and abundant agricultural exports, it has not been able to solve its debt problem. Argentina's domestic education policy is very relaxed, and education is free from primary school to university. In addition, comprehensive medical care is also free. According to the data, Argentina's total external debt is $270 billion, with China being the largest creditor.
But the situation in Argentina is not encouraging. Despite its lavish education and health care systems, as well as its abundant agricultural exports, the country has not been able to escape its debt problems. According to reports, Argentina** has so far failed to repay its huge external debt, which exceeds 250 percent of the country's GDP. Although the country** provides substantial benefits to its citizens every year, this has led to an ever-increasing increase in its national debt. At the same time, Argentina is also facing problems such as declining productivity and sluggish economic growth.
China is Argentina's largest creditor, so there is concern about how Milley will deal with it when he comes to power. There are fears that China may take measures such as withdrawing loans and cutting off technology supplies, causing Argentina's infrastructure to shut down. However, as the largest overseas investor, China will inevitably seek reasonable solutions to protect its investment interests.
Argentina's debt problem has been in the spotlight. Among them, the most worrisome is the huge debt to China, which totals $12 billion. As Argentina's largest creditor, China is closely following Milley's movements after taking office. If China takes steps to recover its debts, Argentina could face the risk of a shutdown and supply disruption.
However, after all, China is a responsible power and will not take drastic actions lightly. Instead, China will seek a reasonable solution between the two sides in order to safeguard the interests of the investment, while also hoping that Argentina will be able to repay its debts. In fact, Argentina is still in a position to repay its debts. The country is rich in agricultural and mineral resources that can be used to partially repay debts. Therefore, both parties can reach an agreement to use these resources to repay the debt, which is a viable option for both parties.
However, any solution will take time to reach, so Milley needs to stabilize its domestic political and economic situation to ensure that any agreements reached can be effectively implemented. At the same time, China also needs to maintain trust and patience in Argentina and push the cooperation between the two sides to a deeper level.
Resolving Argentina's debt problem will take time and cooperation. After taking office, Milley should first stabilize the domestic political and economic situation and lay the foundation for resolving the debt problem. In addition, there is a need to strengthen cooperation and communication with China to build trust and friendly relations.
As Argentina's largest creditor, China should continue to show patience and trust, and actively promote the cooperation between the two sides to a deeper level. China can help Argentina solve its fundamental problems, such as a weak industrial base, by providing technical support and investment. Only through genuine cooperation and mutual benefit can we ensure that the cooperative relationship between China and Arab States is more stable and lasting.
Despite Argentina's worrisome debt problems, a reasonable solution can be found if both sides show good faith and flexibility. For China, instead of worrying too much about its debt problem, it should focus more on how to help Argentina solve its fundamental problems through investment and cooperation. Only through genuine cooperation and mutual benefit can we ensure that the cooperative relationship between China and Arab States is more stable and lasting. Ultimately, both countries can reap greater benefits from cooperation.