China Signs $900M Deal with Argentina for Agricultural Imports

China has signed a letter of intent with Argentine exporters to purchase soybeans, corn, and vegetable oil worth approximately $900 million. This move is the latest indication that China is steering clear of U.S. supplies amid the trade war initiated by President Donald Trump. The Argentine newspaper Clarín first reported the news, citing sources familiar with the discussions.

On Wednesday, Chinese officials were in Buenos Aires to sign the non-binding agreement. The deal follows a visit by a delegation from the China Council for the Promotion of International Trade to Argentina on May 7. During meetings with Argentine officials responsible for international trade and agricultural markets, the parties discussed economic development and the promotion of free trade. A memorandum of understanding was signed, though further details were not disclosed.

China is already Argentina’s largest buyer of unprocessed soybeans and imports some Argentine soy oil. Last year, China also opened its market to Argentine corn. However, according to Chinese customs data, Argentina remains a minor supplier of agricultural products to China, with soybean exports halted since January this year and no corn shipments recorded.

Such a substantial upfront commitment to Argentine crops is unusual and signals China’s strategic shift toward South American suppliers amid the escalating trade war with the U.S. China is likely to maintain tariffs on American products in retaliation for Trump’s duties, favoring imports from Argentina. In a statement, the Buenos Aires press office of Chinese trading firm Cofco International Ltd announced an agreement with Sinograin, China’s state company managing strategic food reserves, to expand agricultural commodity supplies from Argentina and explore long-term cooperation.

Separately, the Argentine Rural Society reported last month on X that China’s Fufeng Group Ltd is interested in building a corn-processing plant in Argentina. These initiatives highlight the strengthening economic ties between the two nations and China’s efforts to diversify its sources of agricultural imports.

Tags: China, corn, soybean, agricultural products, Argentina