The closing of a reported $8 billion nuclear power plant deal between China and Argentina is expected to happen at the end of the G20 Summit set to take place from Nov. 30 to Dec 1, according to an official from the South American country.
Juan Pablo Tripodi, head of Argentina's national investment agency, told Reuters that his country hoped to announce a finalized deal on Dec. 2.
Under the agreement, China would provide Argentina with $6.5 billion loans to be paid in 20 years, according to local media reports. The loan comes with eight years of grace period and 4.5 percent annual interest, according to unverified media reports. In line with the planned deal, the two nations were also reportedly planning to close a deal involving a currency swap which would double the original amount of credit limit to $18.7 million.
Meanwhile, a separate local report said Chinese President Xi Jinping lauded a 'new era' of the China-Argentina relations.
Xi reportedly highlighted several areas where enhanced bilateral ties between China and the Latin American country were demonstrated. The president outlined agreements involving strategic communication, infrastructure projects under the Belt and Road Initiative, sharing of cultural values and people-to-people exchanges, and joined the effort in safeguarding the interests of emerging economies and other developing countries.
The Chinese president has also mentioned the continuing mutual respect and trust, upholding both of the countries' core interests, and deepening pragmatic cooperation.
The nuclear power plant, called the Atucha III, would be the largest investments by China in Argentina, according to Reuters' estimates. The publication noted that the Asian powerhouse has aggressively increased its diplomatic and cultural ties with Argentina in the most recent years.
Reuters found that China has become Argentina's most important trading partner, investor, and financier. The Asian superpower has boosted the South American country's economy with billions of financial support.
China, as it turned out, has pumped as much as $18 billion in infrastructure investments in Argentina in the last 10 years, Reuters learned. During this time, the Asian superpower offered low debt interests of between 3 and 4 percent, Reuters outlined, citing data from the Inter-American Dialogue which is a non-profit body headquartered in Washington.
With the ongoing China-US trade war, Beijing has also become the chief importer of Argentine soybeans which is the South American country's most important crop.
China's reach in Argentina is not limited to investments and financial deals as the South American country is also keen on welcoming education partnerships with Beijing. For instance, the Asian powerhouse has set up Confucius Institutes at the University of Buenos Aires and a college in one of the country's provinces.
