What Benefits Do China & Argentina Offer Each Other?
Zhen Pan, associate attorney at Diaz Reus: “The vaccine cooperation between China and Argentina aims to create a win-win situation for both countries to accelerate their process in combating Covid-19, improving people’s well-being and restoring the economy. Since July, two vaccine candidates developed by a Chinese state-owned company have been in the most important Phase III human trial stage, during which large-scale testing is needed before approval for public use. Since China had a relatively small number of confirmed cases (and almost all have recovered), as part of the two countries’ collaboration, testing would be conducted in Argentina among its increasing reported cases. In return, Argentina would receive an affordable price on the vaccine, in the event it is launched after a successful trial. Cooperation on vaccines further demonstrates Argentina’s desire to deepen its bilateral relations with China, in addition to those established ties in such fields as trade, investment, infrastructure and finance. Investment from China in the fields of energy and infrastructure have been steady in the past few years, while foreign direct investment during the same period in Argentina has been unstable, presumably because of the country’s economic challenges and its government’s debt obligations. FDI inflows in Argentina in 2019 were far less than those in Brazil and other Latin America counterparties such as Colombia and Chile. It is thus imperative for Argentina to revitalize its bilateral relationship with China, one of its largest trading partners, as part of the country’s efforts to boost its economy.”