New recipe to alleviate the crisis of reserves: Chinese companies will be able to invest in yuan in Argentina

The Tsingshan Holding Group building is the best example of the power of a company with 200,000 employees in the world and an annual turnover of US $ 90,000 million. The marble, stainless steel and luxuriously decorated tower also has a very large terrace with a view of Pudong, the financial capital of China and its skyscrapers with mapping and other colored lights that light up at sunset.

This tower is known as the Pearl of the Orient. The firm with mining investments in Salta and Jujuy is also dedicated to aluminum and stainless steel and yesterday offered a banquet to Sergio Massa and his large entourage. Miguel Pesce, Máximo Kirchner and Juan Manuel Olmos did not attend.

Xiang Guangda, the chairman of the board, announced that it has already invested US$ 600 million and will send another US$ 800 million for the construction of two plants in Perico, Jujuy. One, caustic soda and sodium hypochlorite. The firm is a partner of French mining company Eramet.

Among some of the 8 dishes that made up the meal, including sea cucumber which is a real offering to the visitor and gan bei, the white background toast of Bai Jiu, rice liquor, Massa announced the opening of trade and investments in yuan. It reaches all companies that have the Chinese currency and is a strong signal to Beijing that in the midst of the dispute with the US wants the yuan to compete as a transactional currency with the dollar.

In this way, Massa seeks to move in the geopolitical chess of the XXI century, ask in China and pressure the IMF in a scenario of tensions between the two colossi seem to escalate.

Currently only yuan is used to pay for imports and will now be used for all kinds of operations. The Central Bank shall openan account in yuan. They have already launched two special markets for yuan, one spot and the other future in what is a novelty.

That exchange in yuan means that a company, instead of entering the country with dollars via spot liqui and buying dollars with those yuan, can enter the yuan directly. In turn, the Central Bank already has in its account about US $ 5,000 million in its freely available reserves. Here they claim that they are intact.

In the vision of Economy, an intermediation is eliminated by converting yuan to dollars that "generate lack of transparency due to over-invoicing of imports and under-invoicing of exports. With this, it is likely that China will displace Brazil and become Argentina's main trading partner," they said.

One of the minister's advisers slipped, what happens is that "the United States puts the eye on you and China puts the body on you," he blurted out. In this reasoning were inscribed the statements of Maximo Kirchner at the University ofFundan. "I want to thank the institution for the recognition of Néstor Kirchner in the granting of the Honoris Causa and the good treatment towards the figure of CFK who deepened the bond forged by Néstor of the Integral Strategic Association. I emphasize the collaborative nature of the relationship where aid is made without exerting any type of pressure," said the head of the Buenos Aires PJ.

In truth, in the midst of an Argentine crisis that has its roots in exchange rate volatility and high inflation, the government tries not to devalue by repressing the official dollar to avoid another jump in prices. In China, there are redoubled efforts in investment announcements.

So far Chinese companies have not blocked their path in their strategy to make more foot in the region. And in what is inevitable, it worries the United States that "puts the eye on China's interests in 5G, the Waterway, ports and hydroelectric plants that are concessioned to the American AES," according to an official.

Massa and his delegation met yesterday with Tibet Summit Resources and discussed the Salar Arizaro and Salar de Diabolillos Projects, which foresee the construction of a lithium processing plant in the province of Salta. There were investment commitments of US$1.700 billion to produce between 50,100 and 10,<> tons between the two projects. In addition, they would generate up to <>,<> direct and indirect jobs.

"We want a mining that generates use of the resource with the generation of added value and employment. We want to get out of the idea that we are a primary exporting country to be an exporting country with added value from our own primary products," Massa told them.

He also met with Ganfeng Lithium, the leading producer of lithium and derivatives, which currently has four projects in Argentina. The company expects an investment of US $ 2,700 million and expects a production of 74 thousand tons of lithium carbonate.

During the meeting, work was done on the Mariana Project, which aims to promote the extraction of lithium in the Salar de Llullaillaco, located in Salta, and the Cauchari-Olaroz project, which begins operating and exporting in the third quarter of 2023, was addressed.

Tomorrow Massa leaves after a meeting with Dilma Roussef in Beijing where he will finally know if he got what he really came to seek: the renewal of the swap for US $ 18,000 million.