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Argentina and China
China Invests In Argentina
Argentina, a nation rich in iron ore, gold, soya, fertilizers, and electronics, has become of particular interest to foreign investors, specifically to China, a nation that has increasingly become involved with Argentine investments. In 2010 alone, China invested approximately US$1.6 billion in energy plants, fertilization, automobiles, agriculture, and the building of the underground metro system in Córdoba, which will be mainly built by a Chinese company. Most recently, the increase in the overall Chinese interest in Argentinean investment has extended to banking.
The Industrial Commerce Bank of China (ICBC), one of the largest financial institutions in the world, began its internationalization in 2007 by acquiring a 20 percent stake in South Africa’s Standard Bank and now wishes to acquire the Argentine Standard Bank unit. Since establishing a relationship with Standard Bank in 2007, ICBC has been a very strong financial and structural partner for Standard Bank. 
The benefits for both parties if an agreement is reached are evident: Standard Bank’s financial profits would help it to achieve its goal of once again dominating the market of its origin, which is being threatened by NEDBank, and ICBC would further promote the business that China has already advanced in Argentina. Ernesto Fernández Taboada, executive director of the Argentine-Chinese Chamber of Commerce, claims that increasing Chinese banking in Argentina would provide a helpful channel to fund Chinese investments in Argentina.
However, although ICBC executives have visited Buenos Aires in the past couple of years, the transaction is not final: “ The two banks have not come to an agreement yet, but ICBC holds a strong interest in the transaction, and they do not seem to have any financial problems to acquire what they desire”, stated the head of one of Standard Bank’s central office.
Finalizing the acquisition of Standard Bank in Argentina would made China the tenth largest financial institution in South America with over 100 locations throughout the region, which may be a logical step to take, as it reflects China’s increasing interest in Argentina and South America in general.
