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Opinion | Argentina’s Milei has a China conundrum of his own making on his hands
- To address a faltering economy, Argentina chose a leader who has vowed to cut the state’s role drastically
- However, international trade and investment demands substantial government involvement, and Buenos Aires can ill afford to jeopardise relations with a top trading partner like China
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In the second presidential debate, just a week before Argentina’s most unpredictable run-off in decades, the atmosphere was electric. Sergio Massa, the Peronist candidate, directly challenged the far-right contender, Javier Milei. His questions demanded simple answers: “Will you close the central bank? Yes or no?” “Will you dollarise the economy? Yes or no?” “Will you maintain diplomatic ties with Brazil and China? Yes or no?”
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Beyond mere campaign tactics, the questions reflected the anxieties of a population grappling with years of economic instability and seeking concrete responses from Milei – responses that remain elusive. These concerns are taking centre stage with Milei assuming the presidency of Latin America’s third-largest economy on December 10.
The president-elect’s unpredictable behaviour has intensified the uncertainty surrounding his policies. Ambitious plans, such as adopting the US dollar as the national currency and dismantling the central bank, appear to be on hold. Despite lofty statements, the specifics of his agenda remain shrouded in mystery.
Argentina’s future stands at a crossroads, caught between Milei’s ideological aspirations and the practical realities of governance. A critical factor will be his willingness to push forward policies despite internal and external constraints, with profound implications for the region’s international orientation.
In geopolitics, Milei has repeatedly pledged to realign Argentina with the United States and Israel. He has openly criticised Brazilian President Luiz Inacio Lula da Silva, branding him a “communist”, and the Chinese government, which he described as “assassins”.
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Such pronouncements underscore one of the many paradoxes of Milei’s rise: a pro-market leader potentially jeopardising relations with Argentina’s top two trading partners, Brazil and China.
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