With soy and lithium trade in the balance, Argentina’s Milei has a China conundrum

BUENOS AIRES/BEIJING, Dec 7 (Reuters) – Argentina’s President-elect Javier Milei has a China conundrum.

The libertarian economist insulted communist-run China in a fiery campaign, but takes office on Sunday needing the country’s second-largest trade partner more than ever as a recession looms and foreign currency reserves run dry.

Since he won the Nov. 19 election, Milei’s team have taken a more diplomatic tone, reflecting complex ties with China, the top buyer of Argentine soybeans and beef, a key investor in its lithium, and the provider of an $18 billion currency swap – effectively, a form of credit provision that has helped Argentina avoid default.

Miguel Schiariti, president of the local CICCRA meat industry chamber, is hopeful of a “cordial” relationship, pointing to recent comments by incoming foreign minister Diana Mondino. China buys over three-quarters of Argentina’s beef exports.

Mondino told Reuters in a Dec. 2 interview that the new government would review “secret” state-to-state deals to ensure they were all above-board, but emphasized Argentina would not cut ties with China, and would look in fact to bolster private trade.

“The private sector is the one that makes the…