Argentina - Mainland China Trade 2023 Q1: Widening Deficit

Key Market Takeaways: Argentina - Mainland China Trade

The bilateral trade relationship between Argentina and Mainland China showed mixed growth with a widening deficit in Q1 2023.

• Economic Pulse: Argentina posted a $1.96B trade deficit ($3.16B imports vs. $1.20B exports), with import declines (-24% YoY) outpacing export volatility (+12% in January, -15% by March).
• Exchange Structure: Argentina - Mainland China trade statistics reveal a resource-for-tech model—agricultural commodities (68.9% of exports) swapped for machinery and industrial inputs (52.5% of imports).
• Strategic Interdependence: Highly complementary but imbalanced, with China holding the high-value position in manufactured goods while Argentina relies on low-margin raw material exports.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Argentina-Mainland China Trade Trend in Q1 2023

Argentina Export Performance: Shipments to Mainland China

• Total Volume: $1.20B in Q1 2023.
• Growth Trend & Context:
  • YoY growth was mixed: +12.07% in January but turned negative (-14.71%) by March.
  • No specific trade news to explain the volatility.
• Key Volatility: January saw the highest MoM growth (+14.96%), while February dipped slightly (-2.31%).

Argentina Import Performance: Sourcing from Mainland China

• Total Volume: $3.16B in Q1 2023.
• Growth Trend & Context:
  • YoY declines persisted throughout the quarter, worsening from -24.09% in January to -32.55% in March.
  • No relevant news to contextualize the contraction.
• Key Volatility: February recorded the sharpest MoM drop (-19.51%), followed by a partial recovery in March (+18.74%).

Argentina - Mainland China Trade Balance & Market Dynamics

• Net Position: Trade deficit of $1.96B (Imports $3.16B > Exports $1.20B).
• Relationship Status: Argentina remains heavily dependent on imports from Mainland China, with a widening deficit driven by steeper import declines relative to exports.

Argentina Import Trend from Mainland China 2023 Q1 (Source: yTrade)**

Argentina Export Trend to Mainland China 2023 Q1 (Source: yTrade)**

Get Historical Argentina Mainland China Trade Records

Argentina-Mainland China Top Trading Products in Q1 2023

Argentina Export Profile: What Does Argentina Sell to Mainland China

• Top Commodity: Rank #1 Export is HS 02 (Meat and edible meat offal) at 35.82% of total exports to Mainland China.
• Demand Driver: Mainland China uses these for food consumption and industrial processing (e.g., meat products for retail and food manufacturing).
• Concentration: The top two categories (HS 02 and HS 10 - Cereals) dominate, accounting for 68.91% of exports, indicating high reliance on agricultural commodities.

Argentina Import Profile: What Does Argentina Buy from Mainland China

• Top Commodity: Rank #1 Import is HS 85 (Electrical machinery and equipment) at 26.47% of total imports from Mainland China.
• Dependency Nature: Critical technology dependency, as imports are dominated by machinery (HS 85, HS 84) and industrial inputs (HS 29 - Organic chemicals).

Argentina - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity – Argentina exports raw materials (meat, cereals) and imports high-value machinery and industrial goods.
• Value Chain Position: Mainland China holds the higher value-add position, supplying advanced manufactured goods, while Argentina provides low-margin agricultural commodities.

Import Analysis by Product: Mainland China to Argentina (Source: yTrade)

Export Analysis by Product: Argentina to Mainland China (Source: yTrade)

Check Detailed Argentina-Mainland China Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Argentina - Mainland China trade relationship is likely to face continued volatility in the near term, with exports under pressure from fluctuating demand and imports constrained by economic headwinds. Given the structural reliance on agricultural exports (HS 02, HS 10) and critical tech imports (HS 85, HS 84), the trade deficit may persist unless Argentina diversifies its export basket or secures more favorable terms. Traders should brace for uneven recovery, with potential upside if China’s domestic consumption rebounds. However, without policy intervention, the current resource-for-tech model will keep Argentina in a low-margin position.

Strategic Moves

• Lock in Agri-Export Contracts: Argentine meat and cereal exporters should negotiate long-term supply agreements with Chinese buyers to stabilize revenue streams amid volatile demand.
• Diversify Import Sources: Reduce overreliance on Chinese machinery by exploring alternative suppliers in Southeast Asia or Europe to mitigate supply chain risks.
• Push for Value-Add Exports: Invest in processing capabilities (e.g., packaged meat, fortified cereals) to capture higher margins and reduce dependency on raw commodity sales.

Frequently Asked Questions

How did Argentina - Mainland China trade perform in 2023 Q1?

Argentina exported $1.20B to Mainland China with mixed YoY growth, while imports totaled $3.16B, showing persistent YoY declines.

What are the top exports from Argentina to Mainland China?

HS 02 (Meat and edible meat offal) and HS 10 (Cereals) dominate, accounting for 68.91% of Argentina’s exports to Mainland China.

What does Argentina import from Mainland China?

HS 85 (Electrical machinery and equipment) is the top import, followed by HS 84 (Machinery) and HS 29 (Organic chemicals).

What is the trade balance between Argentina and Mainland China?

Argentina recorded a trade deficit of $1.96B, with the gap widening due to steeper import declines relative to exports.