China has become Argentina's largest trading partner for four consecutive months

According to a report by the International Strategic Research Institute of the Argentine Chamber of Exporters, in July, China once again became Argentina's main trading partner, accounting for 11.3% of Argentina's total exports and 21.9% of the country's total imports. This is the fourth consecutive month that China has replaced Brazil as Argentina's largest trading partner.

Affected by the epidemic, Argentina’s exports and imports to China fell by 14.3% and 20.4% year-on-year, respectively, and the trade deficit with China was US$198 million.

In July, the main commodity exported by Argentina to China was soybeans, which accounted for more than 50% of total shipments. 20% is related to boneless frozen beef. Imports to China mainly consist of machinery, chemicals and "others", but textiles and metals also account for a certain proportion.

At the same time, a report issued by the Office of International Trade and Investment of the Ministry of Foreign Affairs of Afghanistan assessed that the products with the greatest export potential to China include frozen beef, full-grain leather, soybean oil and frozen beef offal.

The agency also pointed out that “in 2019, the total number of companies exporting to China has increased significantly”, with a record of 783 export companies, an increase of 87 from the previous year. The average export value of each company has also increased from US$6.1 million in 2018 to US$9 million in 2019. "The increase in China's demand for Argentine meat has spurred many local production companies and restored the industry’s export momentum."

The Argentine Chamber of Exporters also focused on the situation of bilateral relations in August, emphasizing that the first batch of fresh lemons entered the Chinese market in August after the corresponding phytosanitary agreement was signed in December 2019. Citromax, San Miguel, ArgentiLemon and Diego Zamora e Hijo exported 436 tons of lemons. Pablo Padilla, president of the Argentine Northwest Citrus Association, said that due to the size and potential of the Chinese market, this market has important strategic significance for the Argentine citrus industry to expand and consolidate the Asian market. "