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China's liquefaction plan against Argentine meat began

Published May 19, 2024

Tridge summary

Argentina is set to lose its relative importance as a beef supplier to China due to China's 'liquefaction plan', which freezes authorization of new Argentine meat processing plants and authorizes them for competing countries. China has already opened 24 new Brazilian beef slaughterhouses and allowed Colombian beef to enter the market. Meanwhile, Argentina's economy is in disarray, with a strategy focused on a 'laundering project' and large investments in the mining and hydrocarbon sectors, while overlooking the potential of agriculture to generate foreign currency. The article criticizes this 'magical thinking' approach and warns of the consequences of China's plan for Argentina's already struggling economy.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

We at Bichos de Campo warned with sufficient advance notice that bastardizing China for ideological reasons was bad business. A bankrupt country without foreign exchange reserves cannot afford to mistreat any client. And even less one so important. The consequences of this strategic error are not yet observed in the foreign trade numbers because the current situation is the product of the carry-over effect of the previous administration, as is the inherited macroeconomic disaster. Argentina continues to be China's second supplier of beef so far this year (behind Brazil). However, the country will now begin to have less relative relevance based on the “liquefaction plan” implemented by the Chinese central government. The plan in question is very simple: freeze requests for authorization of new Argentine meat processing plants that export beef and authorize – sometimes en masse – industrial units from competing countries. Last March, the Chinese government opened 24 new Brazilian ...
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