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Last Updated: Wednesday, 17 November, 2004, 01:57 GMT
Argentina gets China investment
Argentine President Nestor Kirchner (right) shakes hands with China's President Hu Jintao at the Presidential House in Buenos Aires.
The deals is an excellent news for the Argentine economy
China will invest nearly $20bn (11bn) in Argentina over the next 10 years.

The announcement of the trade and investment deals came on the first day of a state visit to Argentina by China's President Hu Jintao.

The visit is part of Mr Hu's two-week Latin America tour to expand China's economic presence in the region and comes after his state visit to Brazil.

In recent days, Mr Hu had said that China planned to invest $100bn (55bn) in Latin America over the next decade.

Massive investments

The announcement of the multi-billion dollar agreements came after Mr Hu was received by Argentina's President Nestor Kirchner in the presidential palace in Buenos Aires on the first day of his two-day visit.

After a private meeting that lasted about an hour, the two presidents emerged to sign a number of accords.

These covered investment in Argentine railways, and also agreements on education, tourism and trade.

Three years after Argentina's devastating economic crisis, the promise of Chinese investment could not have come at a better time, says the BBC's Elliott Gotkine in Buenos Aires.

Brazil deals

Mr Hu's arrival in Argentina followed a five-day state visit to Brazil.

Brazil's President Luiz Inacio Lula da Silva and China's President Hu Jintao celebrate after trade talks in Brazil
Hu Jintao (right) was all smiles after winning backing from Brazil's Lula

During the visit, Brazil met Chinese wishes to recognise it as a market economy.

In return, Brazil was granted greater access to China's market for chicken and beef products. The beef deal alone is expected to be worth $600m (324m) a year for Brazil, ministers said.

It also gained a commitment from China to order at least 10 aeroplanes from Brazilian maker Embraer, reported the AFP news agency.

To facilitate trade, the Chinese are offering between $5bn (3bn) and $7bn (4bn) worth of investment to improve Brazil's roads, railways and ports.

China sees the deal as an important step towards obtaining better trade terms from the World Trade Organisation.

On Thursday, Mr Hu goes on to Chile for the annual summit of the Asia-Pacific Economic Co-operation (Apec) forum in Santiago.

Later, he is due to travel on to Cuba.




SEE ALSO:
Brazil backs China on trade bid
12 Nov 04 |  Americas
World trade talks reach agreement
01 Aug 04 |  Business
Brazil wins China trade support
28 May 04 |  Business
Brazil wins double trade victory
08 Sep 04 |  Business
Country profile: Argentina
13 Nov 04 |  Country profiles
Country profile: China
13 Aug 04 |  Country profiles
Country profile: Brazil
20 Aug 04 |  Country profiles
Profile: Hu Jintao
05 Mar 03 |  Asia-Pacific


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