the historical notion of Latin America as America’s backyard. President Xi Jinping visited Argentina in mid 2014 and Cristina Kirchner visited China in early 2015. During Xi’s visit, the leaders upgraded their countries’ ties to a bilateral “comprehensive strategic partnership” and signed the Convenio Marco de Cooperación en Materia Económica y de Inversiones, or the Framework Agreement for Economic Matters and Investment Cooperation (FAEMIC). Apart from its geopolitical relevance, this agreement highlights three broad aims of cooperation, including (1) the tempering of the commercial imbalances between China and Argentina, (2) the provision of financing for construction investment in key infrastructure for the development of Argentina's economy in the long run, and (3) the alleviation of the Argentine foreign currency shortage in the short run.iv The general agreement is composed of smaller, specific contracts on individual projects, which have the potential to promote the transfer of technology and knowhow as well as local production of skill-intensive industries. Theoretically the FAEMIC accurately reflects the global context in which China and Argentina find themselves and addresses their most burning anxieties: For China, its increasing concerns regarding energy security and its need for raw material and primary products to sustain its population; and for Argentina, its lack of financial credibility and currency controls preventing its overdue debt restructuring, as well as its interest in establishing more egalitarian terms of trade with the Asian giant. Nevertheless, the ratification of the FAEMIC has raised significant concerns and opposition amongst the Argentine population. A closer examination of the agreement’s execution is necessary to evaluate the veracity of the concerns, as well as to determine whether these issues are shared by LAC countries at large or are specific to the Argentine case. III.
China-LAC Relations vs. China-Argentina Relations Since FAEMIC In their paper “China Matters: China’s Economic Impact in Latin America,” authors Kevin
Gallagher and Roberto Porzecanski highlight two relevant aspects of China’s economic relationship with LAC: Firstly, the effect of China’s economic growth on trade and foreign direct investment flows for LAC; secondly, China’s effect on the competitiveness of LAC exports in world markets. An additional political dimension worth exploring is the effect of China’s desire to establish its power position in the global economic system on LAC economies. Magnified through the lens of China-Argentina relations, the subsequent analysis dissects the three main
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