The Trump administration is reportedly using its proposed $40 billion bailout of Argentina as leverage to encourage the nation to reduce its economic ties with China. According to a report by the *Wall Street Journal* on October 11, 2023, U.S. Treasury Secretary Scott Bessent is actively urging Argentina to sever connections with Beijing in exchange for financial assistance.
Argentina has significant trade relations with China, exchanging over $2 billion in goods in August 2023 alone, as noted by the Observatory of Economic Complexity. The U.S. sees stabilizing Argentina as a crucial step in strengthening its influence in the Western Hemisphere. A spokesperson for the Treasury Department emphasized that a strong Argentina aligns with U.S. strategic interests, stating, “Stabilizing Argentina is ‘America First.’”
During discussions with Argentine Economic Minister Luis Caputo, Bessent expressed concerns regarding China’s access to vital minerals, highlighting the need for U.S. access to Argentina’s rich uranium deposits. The Trump administration aims to position the U.S. as Argentina’s primary provider of telecommunications and internet services, countering the influence of companies linked to China. An example of China’s significant presence in Argentina is Telecom Argentina, which recently secured a loan of $74 million from the Bank of China.
Bessent described Argentine President Javier Milei as a strong ally of the U.S. in efforts to revitalize the nation’s economy. On October 10, Bessent remarked on social media, “President Milei is trying to break 100 years of bad cycles in Argentina. We do not want another failed or China-led state in Latin America. Stabilizing Argentina is America First.”
Milei’s administration faces challenges in liberalizing the economy, particularly in the context of soaring inflation and ineffective government programs. With mounting debt obligations and depleted financial resources, the Argentine government has turned to the U.S. for support.
The Treasury Department has not yet responded to requests for comment regarding the ongoing discussions. The implications of this financial arrangement may reshape Argentina’s international relationships, especially as it navigates its economic recovery.
