La Paz, Bolivia, Nov 20 : Last year, then-presidential candidate Javier Milei made headlines for his fiery rhetoric, vowing Argentina would refuse “deals with communists” like China and Brazil, and branding their leaders as “murderers” and “thieves.” Fast forward to the Group of 20 (G20) summit in Rio de Janeiro, and President Milei appears to have pivoted. On Tuesday, he shook hands with Chinese President Xi Jinping and pledged to strengthen trade ties with the Asian economic giant. This came just a day after Argentina signed a preliminary agreement to export natural gas to Brazil.
The G20 summit marked a notable shift for Milei, who had earlier disrupted international agreements, withdrawn Argentine negotiators from the UN climate summit, and cast the only “no” votes on UN resolutions supporting Indigenous rights and ending violence against women. Despite his combative stance, Milei eventually signed onto a joint G20 declaration, reportedly under significant international pressure.
Argentina’s economy is heavily reliant on trade with China, its second-largest trading partner and a critical source of financing. During his first meeting with Xi, Milei discussed strengthening bilateral ties, signaling a more pragmatic approach amid Argentina’s financial challenges. The cordial encounter underscored Argentina’s dependence on China, which holds key assets in the nation, including stakes in lithium mines and a space station in Patagonia.
Turning Point at the G20
Milei’s participation at the G20 summit revealed the complexities of his foreign policy. While his administration initially resisted sections of the declaration related to taxing the super-rich, regulating online speech, and gender equality, Milei ultimately conceded. Analysts attribute this to Argentina’s dire economic situation.
“Argentina is not a great power, and the economic challenges it faces left it little room to resist international pressure,” said Roberto Goulart Menezes, an international relations professor at the University of Brasilia.
Further easing tensions, Argentine Economy Minister Luis Caputo signed a memorandum with Brazil to explore the export of 30 million cubic meters of natural gas annually from Argentina’s Vaca Muerta shale field, a potential economic boon.
Strained Regional Relations
While Milei softened his stance with China, his relationship with Brazil’s left-wing president Luiz Inácio Lula da Silva remains tense. The two leaders’ frosty interactions stood out at the summit, with a photo-op showing them avoiding even a handshake. Their differences extend to key issues like climate change and social policy, leaving little room for collaboration between South America’s two largest economies.
Risks of Isolation
Milei’s pro-Trump alignment, especially following the former U.S. president’s re-election, could further strain Argentina’s multilateral commitments. Critics warn this could lead to international isolation, undermining Argentina’s role in forums like the G20.
Despite the tension, Milei’s meeting with Xi and his participation in the G20 declaration indicate a more calculated approach. However, balancing domestic populism with international diplomacy remains a tightrope for the newly elected leader.
