Milei Balances US Ties and China Trade as Argentina Faces Economic Challenges
BUENOS AIRES, Argentina — Argentina’s President Javier Milei embarked on his 14th trip to the United States on Wednesday to participate in the inaugural session of U.S. President Donald Trump’s Board of Peace initiative. He is also scheduled to attend a regional summit in Miami on March 7, bringing together Latin American leaders aligned with the White House’s political agenda.
Navigating a Complex Relationship with China
These visits occur as the Trump administration seeks to strengthen alliances to counter Chinese influence in Latin America. Simultaneously, Milei faces the challenge of managing Argentina’s significant economic relationship with China, which currently serves as its top trading partner. Despite occasionally critical rhetoric towards Beijing, experts suggest Milei cannot easily sever ties with the Chinese market.
“Argentina relies on China’s insatiable demand for South America’s energy, food and minerals, and the United States will never replace that market,” said Benjamin Gedan, director of the Latin American program at the Wilson Center .
Surging Trade with China
Data from Argentina’s official statistics agency reveals that China became the country’s largest trading partner in December 2025, surpassing Brazil three months prior. Argentine exports to China surged by 125% year-on-year, while imports increased by 26% .
“It’s the great irony of Milei’s administration,” noted Mariano Turzi, a professor of international relations at Austral University. “Milei rhetorically seeks to distance himself from China. But it was under Milei’s anti-communist libertarian government that China gained greater ground in the Argentine market.”
Economic Strain and Local Industry Concerns
While businesses have welcomed Milei’s efforts to curb inflation and ease capital controls, his policies—including the removal of tariff barriers and cuts to public works spending—have negatively impacted local manufacturers in Argentina, a nation historically protective of its industries. Argentine manufacturers, burdened by high taxes, express concerns about unfair competition, particularly from China.
The recent arrival of Chinese electric vehicles in Argentina sparked debate, coinciding with factory closures and mirroring actions taken by other countries, like Mexico, which have imposed tariffs on Chinese EVs to align with U.S. Policies. Fate, a leading Argentine tire manufacturer, ceased operations on Wednesday, resulting in the layoff of over 900 employees. The company attributed the closure to “changes in market conditions,” widely interpreted as a response to competition from China .
The Ministry of Labor temporarily suspended the layoffs for 15 days to facilitate negotiations between the company and the union, though the company maintains its decision to close is final.
Chinese Investment in Argentina
China has invested significantly in Argentina’s infrastructure, including hydroelectric dams and solar energy parks, and holds investments in key sectors like lithium mining. Ganfeng Lithium, a Chinese company, has invested billions of dollars in lithium deposits in northern Argentina. A Chinese space facility, which the U.S. Alleges could have military applications, has been operational in the Neuquen province for several years.
U.S. Financial Support and the Monroe Doctrine
As Milei faced a critical juncture in his presidency—leading into the October 2025 midterm elections amid market instability—the U.S. Offered $20 billion in financial assistance to bolster his electoral prospects and stabilize the peso. This intervention reflects the Trump administration’s application of a modern-day corollary to the Monroe Doctrine, asserting American dominance in the Western Hemisphere.
Following the U.S. Bailout, U.S. Treasury Secretary Scott Bessent stated that Milei was “committed to getting China out” of Argentina . However, Argentine officials have consistently emphasized that their closer ties with the U.S. Do not preclude continued engagement with China.
Even with the signing of a comprehensive trade agreement between Argentina and the U.S. Earlier this month, Foreign Minister Pablo Quirno affirmed that the agreement “does not imply that China cannot participate or will not participate in investments in Argentina.”
Gedan from the Wilson Center, observed that despite Milei’s frequent visits to Mar-a-Lago and Washington, Argentina serves as “a great example of the limitations of the Monroe Doctrine.”