China's new investment frontier – Argentina

In 2010, the level of Chinese outbound investment in Argentina increased dramatically. Last year's investment in Argentina by Chinese companies is estimated to have reached US$8 billion, a mark that would have been unimaginable only five years earlier when the total figure barely reached US$20 million. Even as recently as 2009, total Chinese investment in Argentina amounted to US$137 million.

For 2011, Chinese investment commitments and announcements have already surpassed the amount of US$10 billion. In a detailed analysis published in December 2010, London's Financial Times defined Argentina, along with Brazil, as China's new investment frontier.

Also in 2010, Dagong International Credit Rating Agency issued a B (stable) rating for Argentina's sovereign credit, a higher mark than the other three international credit rating agencies (Moody's, S&P and Fitch). In its sovereign credit report for 2010, Dagong held that Argentina and eight other developing countries that obtained a higher mark from the Chinese rating agency – including China, Russia, Brazil and India – national management capacity continued to improve, economic growth potential is stable in the long run, and resistance capacity against external shocks is getting increasingly better. Dagong pointed out that, particularly after the global financial crisis of 2008, developing countries like Argentina have proved that they are more likely to turn disadvantages into advantages in a short time. This is likely to ensure an increased national credit level for some time to come.