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Good question. How much leverage does China have over Argentina? It seems unlikely that Argentina exports much to China. It surely imports a lot but China doesn

Good question. How much leverage does China have over Argentina? It seems unlikely that Argentina exports much to China. It surely imports a lot but China doesn't seem to punish anyone by limiting its own exports.

huntertwo 5y ago
https://tradingeconomics.com/argentina/exports-by-country https://tradingeconomics.com/argentina/exports-by-country China accounts for 11% of Argentina’s exports. I’d imagine a lot of it is soy and maybe lithium.
- Jeff_Brown 5y ago
  Wow! And most of that is agriculture. And perhaps ironically, about 6% of Argentine exports to China are "Fish, crustaceans, molluscs, aquatics invertebrates". The World Bank says[2] that exports make up 14.25% of Argentine GDP. Assuming no substitution, if China cut off all Argentine exports, it would therefore reduce Argentine GDP by 1.56% -- a very big deal. There would of course be substitution, so that's a weak upper bound. And maybe an extremely weak one. According to this[3] (apparently Australian news outlet which I admit I've never heard of), China's trade sanctions against Australia following the latter's suggestion that the world look more into the origins of the coronavirus only reduced Australian exports to China by 2%. [1] https://tradingeconomics.com/argentina/exports/china https://tradingeconomics.com/argentina/exports/china [2] https://wits.worldbank.org/CountryProfile/en/ARG#:~:text=Argentina%20exports%20of%20goods%20and,percentage%20of%20GDP%20is%2016.42%25 https://wits.worldbank.org/CountryProfile/en/ARG#:~:text=Arg.... [3] https://www.news.com.au/finance/economy/australian-economy/chinas-unofficial-ban-on-australian-products-fails-to-inflict-significant-damage/news-story/1858bb05a6030bfcad0bcf2a3aacef62#:~:text=Mr%20Rajah%20told%20The%20Australian,to%20less%20than%20%241%20billion https://www.news.com.au/finance/economy/australian-economy/c....
  - caf 5y ago
    news.com.au is the umbrella for Murdoch's Australian print media.

huntertwo 5y ago

https://tradingeconomics.com/argentina/exports-by-country https://tradingeconomics.com/argentina/exports-by-country China accounts for 11% of Argentina’s exports. I’d imagine a lot of it is soy and maybe lithium.

Jeff_Brown 5y ago
Wow! And most of that is agriculture. And perhaps ironically, about 6% of Argentine exports to China are "Fish, crustaceans, molluscs, aquatics invertebrates". The World Bank says[2] that exports make up 14.25% of Argentine GDP. Assuming no substitution, if China cut off all Argentine exports, it would therefore reduce Argentine GDP by 1.56% -- a very big deal. There would of course be substitution, so that's a weak upper bound. And maybe an extremely weak one. According to this[3] (apparently Australian news outlet which I admit I've never heard of), China's trade sanctions against Australia following the latter's suggestion that the world look more into the origins of the coronavirus only reduced Australian exports to China by 2%. [1] https://tradingeconomics.com/argentina/exports/china https://tradingeconomics.com/argentina/exports/china [2] https://wits.worldbank.org/CountryProfile/en/ARG#:~:text=Argentina%20exports%20of%20goods%20and,percentage%20of%20GDP%20is%2016.42%25 https://wits.worldbank.org/CountryProfile/en/ARG#:~:text=Arg.... [3] https://www.news.com.au/finance/economy/australian-economy/chinas-unofficial-ban-on-australian-products-fails-to-inflict-significant-damage/news-story/1858bb05a6030bfcad0bcf2a3aacef62#:~:text=Mr%20Rajah%20told%20The%20Australian,to%20less%20than%20%241%20billion https://www.news.com.au/finance/economy/australian-economy/c....
- caf 5y ago
  news.com.au is the umbrella for Murdoch's Australian print media.