Against the backdrop of Argentina's serious economic crisis, the new ** Milley came to power and held a meeting with Wu Weihua, a special envoy sent by the Chinese side. At the inauguration, Milley had said that he did not intend to cooperate with China or develop relations with China, Russia and Brazil. However, only one day later, Milley suddenly changed his attitude when he met with Wu Weihua, saying that Argentina attaches great importance to its relations with China, will continue to firmly adhere to the one-China principle, and is willing to strengthen cooperation between the two countries in the economic and trade fields. What is even more surprising is that Milley also wrote a letter to the Chinese leader, asking for an adjustment to the issue of currency debt servicing, hoping to expand the scale of the currency swap agreement reached between the last session and China.
Argentina's economic woes are extremely severe, and the country's public debt has reportedly reached 4,192$9.1 billion, and the IMF's debt is as high as $432$9.8 billion. Argentina's net foreign exchange reserves are even estimated at negative $10 billion. In this situation, it is difficult for Argentina to pay its maturing foreign debt, and China is their only hope. It is worth mentioning that in June this year, Argentina used the framework of the currency swap agreement to use the RMB for the first time to repay the debt of the International Monetary Organization, and in November, it paid $3.4 billion of the IMF's foreign debt and interest through the RMB and other means. The reason why Milley changed his position and sought Chinese assistance stemmed from Argentina's economic needs for China. However, before that, Milley had already announced that he would give priority to developing relations with the United States and Israel, as well as ending ties with China and Brazil, and did not even intend to join the BRICS as scheduled, so the change in Argentina's attitude is incomprehensible.
For China, whether it should accede to Argentina's request to expand the currency swap agreement remains a matter of debate. Milley has already begun to implement the so-called"Shock**", depreciating the Argentine peso by 54% and announcing a series of spending cuts. This led to the reduction of the official Argentine exchange rate to 800 pesos per dollar. However, as things stand, the Argentine peso could face the fate of turning into waste paper, and there are lessons from history. In addition, Milley proposed a full dollarization, which would allow Argentina's financial fate to be completely controlled by Wall Street or the Federal Reserve, and monetary sovereignty to be completely controlled by the United States. Under such circumstances, if China continues to allow currency swaps between the two countries, or even expand currency swap agreements, then how to ensure that China's interests are not harmed will also be an important issue.
Argentina, as a South American country, has been facing economic difficulties in recent years. Millay came to power shortly before Argentina faced a serious economic crisis. This forced Milley to take urgent measures to save the country's economy. He has reversed some of his previous policies, such as canceling plans for cooperation with China, Russia and Brazil. However, shortly after Milley came to power, he sent a letter to the Chinese side asking for help. This has caused a lot of attention and speculation.
The main demand put forward by Milley is to expand the currency swap agreement reached between the last ** and ** China**. This means that Argentina hopes that China will provide more support and assistance to help them solve their economic problems. Argentina is reportedly facing high levels of external debt and its net foreign exchange reserves are very limited. As a result, they urgently need external assistance to solve their funding problems. As the world's second-largest economy, China has the strength and resources to help Argentina tide over the difficulties.
Cooperation between Argentina and China has a long history. In June this year, Argentina used the renminbi for the first time to repay its IMO** debt, repaying its debt to China through the framework of a currency swap agreement. Previously, China had been providing aid and support to help Argentina solve its economic problems. Therefore, Milley hopes that China will once again lend a helping hand and continue to expand the currency swap agreement to meet Argentina's needs.
However, Milley's change of attitude has caused quite a bit of controversy. He first said he had no intention of cooperating with China, and then asked China for help. Some believe that this was a contingency measure taken by Milley to solve Argentina's economic problems. In a difficult economic situation, he had no choice but to turn to China, an economic powerhouse. It is also in stark contrast to Milley's previous statements that he wants to develop relations with the United States and Israel.
However, whether China should accede to Milley's request remains a question. China needs to consider its own interests and risks. If China continues to support Argentina and expand the currency swap agreement, it could increase China's risks and burdens. Therefore, China needs to consider carefully when making decisions.
Milley's letter to China has sparked widespread discussion and attention. Argentina's economic woes are also a challenge for China. As a responsible major country, China needs to consider its own interests and responsibilities when dealing with this issue. So, how should China respond to Milley's request?
First, China needs to conduct an in-depth study of Argentina's economic situation and the impact of other international factors on the country's economy. Only with a comprehensive understanding of the situation can you make informed decisions. Second, China should conduct full communication and consultation with Argentina. Through dialogue and cooperation, find the best way to solve problems. At the same time, China also needs to ensure that its own interests and risks are manageable so as not to have a negative impact on its own economy.
Second, China can consider promoting bilateral cooperation in economic and trade fields while actually helping Argentina. China and Argentina have a long history of cooperation, and the two sides can strengthen cooperation in terms of investment, infrastructure construction, etc., to support the recovery of the Argentine economy. This can meet Argentina's needs and China's interests.
Finally, China should maintain close communication and cooperation with the international community. Argentina's economic problems are not just a one-country problem, but a global challenge. Through cooperation with international organizations and other countries, China can make joint efforts to solve Argentina's economic problems. At the same time, China can also take this opportunity to promote the reform and improvement of the international economic order to reduce the occurrence of similar crises.
All in all, China should respond responsibly to Milley's request and do its best to help Argentina overcome the economic crisis while safeguarding its own interests. Seeking a win-win solution through cooperation and communication is not only support and assistance to Argentina, but also in China's long-term interests.