China wasted no time before issuing a warning to the new “Anarcho-Capitalist” president of Argentina Javier Milei, who promised to cut ties with “communist countries” like Brazil and China.
“It would be a huge foreign policy mistake for Argentina to cut ties with major countries like China or Brazil,” Chinese Foreign Ministry spokesperson Mao Ning told reporters. “China is Argentina’s important trading partner.” Reuters alternatively translated Mao’s words as “serious mistake.”
“No countries could step out of diplomatic relations and still be able to engage in economic trade and cooperation,” Mao went on. She added that Beijing “stands ready to work with Argentina to keep our relations on a steady course.”
Milei promised to cut ties with Brazil and China in an August interview with Bloomberg. Milei had said he intends to “ally ourselves with the West,” naming the United States and Israel, and said “we do not make pacts with communists.”
When asked to elaborate, Milei said he would “not promote relations with communists, whether it is Cuba, Venezuela, North Korea, Nicaragua, or China.” He said he would change trade policies with these countries. In regard to Brazil, he described Argentina’s trade relations with them as one of corruption, oligarchy, and crony capitalism, and said he would break out of these. Finally, he said he “respects and admires” former US President Donald Trump as well as anyone who “manages to stand up to international socialism.”
The outgoing administration of Argentina, led by Alberto Fernandez, had a very close relationship with China. Fernandez had described China as a “true friend” as recently as last month during a visit to Beijing.
"Gracias @JMIlei te amo."
No estoy llorando, es el viento… pic.twitter.com/Vz7j2ctw80
— Monopolio 𝕏 (@SrMonopolio) November 21, 2023
In that Bloomberg interview, Milei said the real objective, “strictly speaking,” behind his plan of “dollarization” is to get rid of Argentina’s central bank, with dollarization being a mere “instrument” to achieve that end. He argued that seigniorage, whereby a government profits off printing more money, is an immoral act of theft and a “swindle by politicians against good people.” He called central banking one of the “great thieves” in the history of mankind and went through a list of examples of ills it has caused.
Meanwhile, the Social Communications Minister of Brazil Paulo Pimenta claims that Milei “offended” President Luiz Inacio Lula da Silva, a socialist, and stated that Milei must “call and apologize” if he wants “further talks.” Milei had mocked Lula multiple times on the campaign trail as an “angry communist” and a “socialist with a totalitarian vocation.” Just like China, Brazil boasts to be a top trading partner of Argentina and will doubtlessly use this status as leverage.
Despite these “grave” warnings, speculators seem to be betting on a bright Argentinian future. As Valuetainment previously reported, Argentina’s stock market surged after Milei’s victory, disproving commentators’ predictions that it would tank. Brazil, on the other hand, is looking at a third quarter with negative economic growth.