Fifteen months into Javier Milei’s presidency, it is now clear that the libertarian leader has no intention of developing a foreign policy agenda focused on Asia. Despite Argentina’s unparalleled economic complementarity with the region, with China at the forefront, Milei has shown interest only in aligning with the United States and Israel – an unprecedented stance for Argentina.
At the same time, Milei has displayed a preference for a handful of Western countries, such as Italy and El Salvador, but solely out of ideological affinity. Almost all his trips outside the United States and Israel have been for multilateral summits or to receive personal accolades. There is no doubt that Argentina’s foreign policy has been shaped by Milei’s ideological stance and personal interests, with all the implications that entails.
In the case of China – an irreplaceable strategic partner for Argentina – the bilateral relationship remains stagnant, with no significant progress. While the trade deficit decreased in 2024, the overall trade volume also declined. The currency swap was renewed after a strong show of support from China to Milei’s government, but its long-term continuity remains uncertain.
Regarding investments, China’s main project in Argentina – the two dams on the Santa Cruz River – remains paralyzed, and the rest of the potential investment agenda has seen no progress. Worse still, Chinese companies were excluded from the failed bidding process for the Paraná-Paraguay waterway, and the recent decree on the privatization of Belgrano Cargas, a state-owned rail network, has also affected Chinese interests.
Despite Milei’s occasional positive statements about China in local and international media, the only notable progress has been in lithium mining investments. In this regard, Milei even welcomed executives from the Chinese company Ganfeng Lithium in February for an investment in Salta province. However, he refused to travel for the project’s inauguration – despite it being the largest confirmed investment since he took office. Meanwhile, a visit to China remains absent from Milei’s agenda, something he himself has acknowledged multiple times in press conferences.
As for Argentina’s relationship with other Asian economic powers, the only notable diplomatic moves have been the trips of former Foreign Minister Diana Mondino to India, Japan, Vietnam, and Malaysia. While she was well received in each country, no significant agreements were announced.
With India, discussions progressed on potential investments in Vaca Muerta, largely thanks to positive efforts by Ambassador Mariano Caucino, though no concrete deals have been finalized yet. Another noteworthy development is that South Korea’s POSCO confirmed the continuity of its mining investments – an important decision given the current climate of uncertainty.
In Malaysia’s case, state-owned PETRONAS withdrew from its joint LNG project with Argentina’s YPF, with no clear explanation, and amid tensions between the national government and provincial administrations over the project’s final location.
It is evident that Asia – with its immense economic development and limitless opportunities for Argentina – has no place in Milei’s libertarian world.
Since Donald Trump re-entered the White House, supported by billionaire Elon Musk, Milei has had eyes only for the United States. His initial expectations – frustrated during Joe Biden’s administration – have now been rekindled with the hope that his “friends” Trump and Musk will support Milei in all his needs, starting with securing a new loan from the IMF.
Milei also dreams of securing a free trade agreement with the U.S., despite Trump’s aggressive protectionist stance against China, Mexico, and Canada. Context seems to matter little to Milei, emboldened by the flattering words he constantly receives from Trump and Musk.
Historically, other Latin American leaders who placed excessive faith in Washington have faced harsh realities.
The importance of engaging with Asia extends beyond trade and finance. There are countless areas where Argentina should naturally have an affinity for and a vested interest in working alongside Asia’s leading nations, including scientific and technological cooperation, defending multilateralism, upholding international law, and promoting free trade rules.
A total bet on Trump distances Argentina from these opportunities and places it in an uncomfortable position of rigid alignment at a time when balanced and pragmatic diplomacy would be the wisest course for a country like Argentina. Only time will tell whether Milei achieves his objectives – defying both international trends and historical precedent.
The article was first published in Spanish by ReporteAsia. Read the original piece here.