Argentina’s China habit

China is deeply entrenched in Argentina’s economy [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Javier Milei need only lean out the window of the presidential palace in downtown Buenos Aires to be confronted with Argentina’s ties to China. About a mile distant on the banks of the River Plate stands the Industrial and Commercial Bank of China building, a towering monolith emblazoned with the ICBC logo that dominates the capital’s skyline. It’s a symbol of how [deeply entrenched China]( is in Argentina’s economy. Milei, a libertarian economist with little political experience, rode to victory in last year’s election promising to tear up Argentina’s old ways to tackle its endemic failings. That included curbing longstanding ties with China. “Would you trade with an assassin?” he asked then. In the four months since entering the pink-hued presidential palace known as the Casa Rosada, he’s devalued the peso, announced 70,000 state job cuts, and done away with price controls. He’s embraced the US and courted former President Donald Trump. Yet with [annual inflation at a vertiginous 276%](, he hasn’t followed through to downgrade China ties. Trade relations between China and Argentina haven’t changed “one bit,” and he has no intention of touching an $18 billion currency swap with Beijing, Milei says. A joint space station with China that the US has warned against “isn’t a problem.” “We have always said that we are libertarians,” Milei told Bloomberg Editor-in-Chief [John Micklethwait]( in an interview yesterday. “If people want to do business with China, they can.” To some extent, it’s a recognition of fact: Chinese trade and investment now drive large swathes of Argentina’s economy, in commodities, energy and banking. But Milei’s approach also shows that despite his carefully crafted image as a wild man, the self-styled anarcho-capitalist has a pragmatic side. It’s a reminder that all politicians are forced to bend to reality once in office, whatever they tell voters beforehand. — [Alan Crawford]( WATCH: Milei backs off of his criticism of China during Bloomberg interview. Source: Bloomberg Global Must Reads US support for Israel’s war in Gaza now depends on new steps to protect civilians, President Joe Biden told Prime Minister Benjamin Netanyahu in a call yesterday. His tougher words came after an Israeli strike that [killed seven people delivering food]( to displaced Palestinians in Gaza, an incident Biden called “unacceptable,” and growing political pressure from progressives, as well as Arab- and Muslim-Americans. Palestinian children wait for food handouts in Deir al-Balah, Gaza, on March 25. Photographer: Ahmad Salem/Bloomberg US Treasury Secretary Janet Yellen chided China’s government for “unfair” treatment of American and other foreign companies and called on Beijing to return to [the pro-market reforms of the past](, at the start of a four-day visit. Beijing has accused Washington of engaging in “classic protectionism” by seeking to erect barriers to Chinese electric vehicles, and filed a case with the World Trade Organization over American subsidies for the industry. South Korea is discussing with China and Japan a plan to host a three-way summit in May, Japanese and South Korean media reported, restoring a process that’s been on hold since 2019 due to the pandemic and political tensions. China has been feeling pressure [as the two have moved closer to Washington]( in recent years, raising their security cooperation with the US. Eastern Europe’s richest family has come under attack from Slovak Prime Minister Robert Fico ahead of tomorrow’s presidential election as he [tries to expand control]( over the nation’s media. TV Markiza, a popular broadcaster controlled by billionaire Renata Kellnerova’s PPF Group, is among outlets that the premier has labeled as “hostile,” threatening to halt state advertising revenue. Attacks on a Malaysian convenience store chain over an insult to Islam may [rock Prime Minister Anwar Ibrahim’s fragile coalition]( in the Muslim-majority nation. Three KK Super Mart stores were hit with Molotov cocktail explosives after calls for boycotting the chain over the sale of socks bearing the word “Allah” turned violent in recent days. The Biden administration is pushing Russia to support a US-backed resolution at the United Nations Security Council that would warn countries [against placing nuclear weapons in orbit](, after reports emerged that President Vladimir Putin may be planning to do so. Turkey’s trade with Russia is stuttering because of Western sanctions, hitting a [key supply line for Moscow]( and one the US and European Union say fuels its war in Ukraine. War is driving hunger to record levels in Sudan, with [18 million people now experiencing “acute hunger”]( amid challenges bringing aid into the country, the UN World Food Programme said. Washington Dispatch Biden faces one less obstacle to reelection now that the No Labels centrist movement [abandoned its aspiration]( of running a third-party candidate in the 2024 election after failing to recruit a standard-bearer. No Labels presented a potential bipartisan ticket as a compelling alternative for voters put off by the prospect of another contest between Biden and Trump, yet Democrats always considered it more of a threat to them. One by one, prominent politicians of both parties said they were not interested in a run. They included former New Jersey Governor Chris Christie and Nikki Haley, who challenged Trump for the Republican nomination, as well as Senator Joe Manchin, the West Virginia Democrat who is retiring. The organization’s decision came a week after the death of former Senator Joe Lieberman, a No Labels co-founder. Biden still has to contend with other independent rivals, particularly Robert F. Kennedy Jr. A Bloomberg News/Morning Consult poll released late last year found that appeal for an independent candidate in seven swing states was strongest among key Democratic constituencies such as young people and urban residents.  One thing to watch: Biden will travel to Baltimore for an aerial tour of the Francis Scott Key Bridge, which collapsed on March 26. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day The EU launched its Green Deal in late 2019 with the goal of leading the world into a sustainable future, but that was followed by Covid, surging inflation, broken supply chains and Russia’s invasion of Ukraine. Facing elevated energy costs, protectionism and competition, officials [need to rethink some parts]( to keep Europe’s industry going and avoid a backlash from voters. And Finally Malta’s Citizenship by Investment program, under which foreigners can buy EU passports, and its low rates of corporate tax and embrace of the gambling industry have helped foster a reputation as a haven for organized crime. Two new arts organizations, the Malta Biennale and the Malta International Contemporary Art Space, are [part of a new effort to push back]( and try to enhance the Mediterranean island’s allure as a cultural destination. A work by the artist Tania Bruguera that reads “The poor treatment of the migrants today will be our dishonor tomorrow.” Photographer: Julian Vassallo Pop quiz (no cheating!) The former speaker of parliament in which country surrendered to the authorities after facing graft charges? Send your answers to balancepower@bloomberg.net. More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](