Chinese investments in Argentina's lithium sector: Economic development implications amid global competition

Abstract

Latin American countries, rich in key transition materials, have emerged as significant suppliers for China and key destinations for Chinese investment. These engagements have coincided with rising global competition among Chinese, and other leading companies to access these materials. Argentina serves as a notable example of these trends.

This paper analyzes Chinese investments in Argentina's lithium sector, focusing on the implications for the country's economic development and international insertion. Drawing on the contributions of Latin American structuralism and other approaches that emphasize the centrality of the State in promoting innovation and complexity in the production system, the paper explores the challenges faced by peripheral countries like Argentina in advancing development within the global center-periphery relations.

Our study employs an exploratory approach based on qualitative analysis of various sources. We first identify the distinctive characteristics of Chinese firms’ overseas strategies and interests in Argentina. Next, we examine the domestic and global factors constraining Argentina's ability to add value locally. In the conclusions, we summarize the challenges Argentina faces regarding the industrialization of lithium and highlight the critical role of the State in fostering the development of these capacities.