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Milei’s affronts to China backfire
Already the extremism of the new Argentinian president’s administration is being watered down in the face of reality – but now the Chinese central bank has cut funding it could be in serious trouble, writes JAMES MEADWAY
Argentina's President Javier Milei (centre right) arrives at the Metropolitan Cathedral for an interfaith ceremony in Buenos Aires, Argentina, December 10, 2023
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THE Chinese government may have pulled the plug on far-right “anarcho-capitalist” President of Argentina Javier Milei, just weeks after his shock election win.
In a spectacular demonstration of how the lines of geopolitical power are shifting, the People’s Bank of China has withdrawn its “swapline” to the Argentinian central bank, depriving it of a vital source of cheap funding.
This leaves debt-ridden Argentina without ready access to funding to meet its promises to pay creditors. These international creditors include the IMF, to whom Argentina owes a world-record $43 billion.
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