China courts Uruguay as Argentina’s Milei embraces Trump

China and Uruguay pledged to deepen their economic relationship Tuesday as Javier Milei next door in Argentina is welcoming the Trump administration’s renewed doctrine in the region.

Uruguay and China signed more than a dozen agreements in areas such as investment, trade, and scientific cooperation following a meeting in Beijing between presidents Yamandú Orsi and Xi Jinping. In a separate 32-point joint-statement, both countries called for free trade negotiations between China and South American customs union Mercosur.

“We wish to continue all our efforts to support the development plans of both countries by intensifying trade in goods,” Orsi said in a statement.

Trump’s efforts to impose his version of the Monroe Doctrine has split the region. While countries including Uruguay, Brazil, and Mexico have tried to maintain an independent foreign policy, Argentina, Paraguay, Ecuador and several Central American nations have aligned with the United States. Panama went so far as to void a contract by a Chinese firm to operate two ports.

Milei has benefitted from his close relationship with Washington. The US Treasury helped Milei’s party win midterm elections last October by buying pesos and diffusing a run on the currency with a US$20-billion currency swap. Last week, the US Treasury also sold Argentina US$808 million in special drawing rights to make interest payments to the International Monetary Fund. 

Countries that haven’t toed Washington’s line like Brazil and Colombia have been threatened with steep tariffs or seen visa applications suspended. Last month, the US included Uruguay on the list of 75 nations affected by a crackdown on immigrant visas.

Trump’s carrot and stick approach to diplomacy has its limits given the region’s overwhelming dependence on China for manufactured goods and as a buyer of its metals, oil and foodstuffs. Even Milei has defended his country’s economic ties with China, which include an US$18-billion currency swap.

Uruguay, a country of 3.5 million people wedged between Argentina and Brazil, has tried to strike a balance between the US and China. 

The US visa restrictions measure won’t affect many Uruguayans “but in terms of the signal it sends of course it concerns us,” Orsi said after meeting with the US ambassador January 15.