earlyretirement
Moderator
China & Argentina sign a whopping $900 Million USD Agricultural Deal
China has signed a letter of intent with Argentine exporters to purchase approximately $900 million worth of soybeans, corn, and vegetable oil. This agreement is a strategic move by China to avoid sourcing these key agricultural commodities from the United States amid the ongoing trade war and retaliatory tariffs between the two countries.
Nature of the Agreement: The deal is a non-binding letter of intent, signed in Buenos Aires by Chinese officials and Argentine exporters. It follows meetings between the China Council for the Promotion of International Trade and Argentine trade and agricultural officials.
Products Involved: The agreement covers soybeans, corn, and vegetable oil-crops in which Argentina is a major global supplier, especially of soybean meal and oil.
Strategic Timing: The deal comes as China seeks to diversify its supply chain and reduce reliance on U.S. agricultural products due to the trade war and tariffs imposed by both countries.
China's Shift Away from U.S. Imports
The agreement signals a significant shift, as China is deliberately steering clear of U.S. agricultural supplies and looking to South America, particularly Argentina, for alternatives.
Although China is already Argentina’s largest buyer of unprocessed soybeans and imports some soy oil, Argentina had been a relatively minor supplier overall, with no soybean exports to China since January 2025 and no corn shipments recorded this year.
The upfront commitment of $900 million is considered unusual and highlights China's intent to secure alternative sources amid trade tensions.
The deal is expected to strengthen economic ties between China and Argentina and could lead to further investment, such as China’s Fufeng Group Ltd expressing interest in building a corn-processing plant in Argentina.
Chinese trading firm Cofco International and Sinograin (China’s state company managing food reserves) have also agreed to expand agricultural commodity supplies from Argentina and explore long-term cooperation.
Broader Trade War Dynamics
The agreement is widely interpreted as a response to the escalating trade war initiated by former President Donald Trump, with China maintaining tariffs on American agricultural goods and seeking leverage by supporting alternative suppliers.
This move is likely to impact U.S. farmers, who have historically relied on China as a major export market for soybeans and corn.
My firm BuySellBA and I predicted the importance of China in 2023 and we called President Milei ignorant for his stance on China. Fortunately he has changed his tune on China and is listening to my advice. His initial stance was moronic. China is not scared of the USA and not backing down. President Trump is going to end up bowing down to China. Once your citizens are accustomed to paying low prices on things there is no going back. All of these things are NOT going to be produced in the USA.
China has signed a letter of intent with Argentine exporters to purchase approximately $900 million worth of soybeans, corn, and vegetable oil. This agreement is a strategic move by China to avoid sourcing these key agricultural commodities from the United States amid the ongoing trade war and retaliatory tariffs between the two countries.
Nature of the Agreement: The deal is a non-binding letter of intent, signed in Buenos Aires by Chinese officials and Argentine exporters. It follows meetings between the China Council for the Promotion of International Trade and Argentine trade and agricultural officials.
Products Involved: The agreement covers soybeans, corn, and vegetable oil-crops in which Argentina is a major global supplier, especially of soybean meal and oil.
Strategic Timing: The deal comes as China seeks to diversify its supply chain and reduce reliance on U.S. agricultural products due to the trade war and tariffs imposed by both countries.
China's Shift Away from U.S. Imports
The agreement signals a significant shift, as China is deliberately steering clear of U.S. agricultural supplies and looking to South America, particularly Argentina, for alternatives.
Although China is already Argentina’s largest buyer of unprocessed soybeans and imports some soy oil, Argentina had been a relatively minor supplier overall, with no soybean exports to China since January 2025 and no corn shipments recorded this year.
The upfront commitment of $900 million is considered unusual and highlights China's intent to secure alternative sources amid trade tensions.
The deal is expected to strengthen economic ties between China and Argentina and could lead to further investment, such as China’s Fufeng Group Ltd expressing interest in building a corn-processing plant in Argentina.
Chinese trading firm Cofco International and Sinograin (China’s state company managing food reserves) have also agreed to expand agricultural commodity supplies from Argentina and explore long-term cooperation.
Broader Trade War Dynamics
The agreement is widely interpreted as a response to the escalating trade war initiated by former President Donald Trump, with China maintaining tariffs on American agricultural goods and seeking leverage by supporting alternative suppliers.
This move is likely to impact U.S. farmers, who have historically relied on China as a major export market for soybeans and corn.
My firm BuySellBA and I predicted the importance of China in 2023 and we called President Milei ignorant for his stance on China. Fortunately he has changed his tune on China and is listening to my advice. His initial stance was moronic. China is not scared of the USA and not backing down. President Trump is going to end up bowing down to China. Once your citizens are accustomed to paying low prices on things there is no going back. All of these things are NOT going to be produced in the USA.
