Argentine Soybean Exports and Debt to China Growing

(BUENOS AIRES, ARGENTINA) As concern grows in the United States of a trade war with China – a dispute that is responsible for a partial drop in soybeans exports from the U.S. – others are watching closely where the Chinese have been buying from. According to data released over the weekend, Chinese soybean imports from Argentina soared 328 percent month over month in July, while the one million metric ton purchase is 269 percent higher than in 2018. Though most of China’s soybean imports are coming from Brazil, the Chinese have a very big concern today: the potential of a sovereign default by Argentina on almost $17 billion. The debt, along with loans from the International Monetary Fund (IMF) of $56 billion have China and other lenders concerned about the country’s ability to repay. China also owns a large portion of Brazilian debt ($29 billion) and another $67 billion in Venezuela. Ironically, China also owns more than $1 trillion in U.S. debt, and are the largest outside investor in the United States.