Copyright © HT Digital Streams Limited All rights reserved. Brian Schwartz, The Wall Street Journal 5 min read 22 Oct 2025, 07:24 IST China has a large presence in Argentina’s telecommunications and Internet markets. (Bloomberg) Summary The South American country is relying on the US and Wall Street banks for a bailout. The Trump administration is pushing officials in Argentina to limit China’s influence over the troubled South American nation, at the same time that U.S. and Wall Street banks are working on a $40 billion bailout for Buenos Aires. Treasury Secretary Scott Bessent has spoken with Luis Caputo, Argentina’s economy minister, in recent weeks about limiting China’s ability to access the country’s resources, including critical minerals. In addition, they discussed granting the U.S. expanded access to the country’s uranium stockpile, according to people with knowledge of the talks. Administration officials are trying to counter Beijing’s influence by encouraging Argentina’s leaders to strike deals with U.S. companies as a way to jump-start infrastructure projects and investments in key sectors such as telecommunications, the people said. China is Argentina’s second largest trading partner after Brazil and the top buyer of its agricultural exports. “Stabilizing Argentina is ‘America first,'” a Treasury Department spokesman said. “A strong, stable Argentina helps anchor a prosperous Western Hemisphere, which is expressly in the strategic interest of the United States.” A spokesman for Argentina’s finance ministry declined to comment. A spokesman for Argentine President Javier Milei did not respond to requests for comment. The talks come as Argentina increasingly turns to the US for help. The libertarian Milei administration is grappling with significant obstacles to its ambitious economic reform agenda and battling runaway inflation. After cutting government spending and taking unpopular measures to close a budget gap, the Milei administration now faces rising debt payments next year and empty state coffers. Foreign exchange reserves are also dwindling as Argentines rush to the safety of the dollar to hedge risks against economic turbulence ahead of Sunday’s midterm elections. Milei has built close ties with President Trump, who has sought to boost Milei’s party’s political standing. Argentina launched talks with the US after Milei’s party suffered a setback in a provincial election in September, sending the peso tumbling and signaling waning public support for Milei’s pro-market reforms. Weeks after the election, Caputo flew to Washington to meet with Bessent to discuss options for financial assistance. The two sides have since agreed to a $20 billion currency swap with the Treasury Department and a separate $20 billion bank-led debt facility that has yet to be structured with assets or guarantees to ensure banks get their money back. A focus of the talks between Caputo and Bessent was to encourage Argentina to push back on China’s growing presence in Milei’s country, the people said. Boxing China out of Argentina would give the US an advantage amid rising trade tensions between Beijing and Washington. China recently imposed restrictions on the export of rare earth minerals, which are vital to consumer electronics and the technology industry. Trump then threatened additional 100% tariffs on China starting November 1st. Trump and China’s President Xi Jinping will meet in South Korea later this month. The Trump administration has made limiting China’s influence in Latin America a national security priority and pressured other countries across the region to cut ties with Beijing. China is “attacking American interests from all directions” in Latin America, the head of the US Southern Command, Adm. Alvin Holsey, told Congress in February. Since Bessent announced a deal with Argentina earlier this month, Trump and his team have made it clear to Milei that they expect him to limit relations with China. “You can trade a little bit, but you certainly shouldn’t go beyond that. You certainly shouldn’t do anything to do with the military with China. And if that’s what happens, I’ll be very upset about that,” Trump told Milei last week during a meeting at the White House. He turned to Bessent and asked, “You get it, Scott, right? You get it?” Treasury officials have told senior officials in Argentina they want to see U.S. companies be a primary source for Argentina’s telecommunications and Internet industries instead of companies tied to China, the people said. China has a large presence in Argentina’s telecommunications and Internet markets. Local telecommunications giant Telecom Argentina recently agreed to receive a $74 million loan from the Bank of China. Huawei, a Chinese technology company that is restricted from doing much business in the US, also operates a 5G mobile network business in Argentina. China is financing the construction of a nuclear power plant that will operate with Chinese technology. China, which has significant investments in mining projects across the South American country, is looking to expand its uranium resources amid growing demand for electricity. Under Argentina’s constitution, provinces own mineral deposits as well as oil and gas. This limits any commitment from Milei’s government to the Trump administration, unless it is also supported by provincial governors who act as regional political barons, analysts say. During a recent interview with Fox News, Bessent said Milei is “committed to getting China out of Argentina.” Bessent later wrote on social media: “We don’t want another failed or China-led state in Latin America.” China’s embassy in Argentina criticized Bessent’s comments. China calls Bessent’s comments a throwback to a Cold War mentality that undermines Latin American independence. However, Argentina does not seem eager to push China out. In a recent television interview, Milei denied that his government would cut ties with China. He said the Trump administration did not ask him to do so. “No, no, that’s not true,” Milei said in response to a question about Argentina abandoning relations with China. Milei noted that Caputo and Central Bank chief Santiago Bausili met with Chinese officials at the annual meetings of the International Monetary Fund and World Bank. Write to Brian Schwartz at brian.schwartz@wsj.com Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #United States #globaleconomy Read next story
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