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Old 19th Jun 2011, 12:13
  #120 (permalink)  
jamesdevice
 
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a bigger risk to China is jeapordising their food IMPORTS. For instance China are the worlds biggest importers of Soy oil, 50% of which comes from Argentina. In 2009 this represented something like $700,000,000 of business. The Chinese alternative is to buy from the USA. The Chinese recently shot themselves in the foot by creating a trade war with Argentina, banning the soy imports: so the Argentines sold it all to India (though at a reduced price), leaving the Chinese with a serious shortfall. When you consider how important Soy oil is to the Chinese, this is a serious issue. Chinese investment in other food production in Argentina is big: major irrigation schemes, railway improvements (to the ports), and purchases of corn, corn oil and other staples.
I'm sure that if the Chinese were given an ultimatum: food for weapons, they'd jump pretty quickly

And don't forget Argentina is well resourced in metals

Last edited by jamesdevice; 19th Jun 2011 at 12:36.
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