On November 19, local time in Argentina, with 91.8% of the votes counted, Javier Milei, the candidate of La Libertad Avanza and a far-right political novice, defeated the ruling party Motherland by 55.8% to 44.1%. Sergio Massa, candidate of the Union (Unión por la Patria) and Minister of Economy, was elected as the next president of Argentina and will replace the current president Alberto Fernández on December 10 this year. Officially took office.

I believe that a few months ago many people were worried about the economic policies promoted by Javier Milei, thinking that this was the craziest economic experiment in human history. As a 53-year-old economist, his past career history is extremely rich. He has been a goalkeeper for a football team, a singer for a rock band, and an actor (the presidents who have been actors include Reagan and Zelensky, and now he has added Milley. , it is not known whether he will have a greater impact on the country than the two of them), talk show and TV host, university professor and bank clerk.

Let’s first observe this presidential election in light of Argentina’s economy. Since 2019, Argentina has been experiencing economic, financial and social crises. Moreover, at the time of the election, Argentina was also facing a 60-year drought, reduced exports of commodities, shrinking GPD and economic stagnation, high inflation, etc.

Milais came to power under such conditions. He advocated comprehensive dollarization, abandoning the peso, abolishing the central bank, liberalizing foreign exchange controls, and in terms of social welfare, privatizing and charging medical and public education. At the same time, we must also support measures such as the legalization of guns and the legalization of human organs.

T3 means that the lightning arrester is a three-level lightning protector; the size of the third-level lightning protector is relatively small, so it is suitable for installation in a small space inside electrical products, and under normal circumstances, it adopts a series circuit design.

Having said all this, what impact does it have on China’s lighting industry? Milei advocates giving up maintaining commercial relations with Brazil and China. As shown in the table, Argentina’s exports rank first and second, with China and Brazil accounting for 14.59% and 11.27% respectively; Brazil and China have the highest import rankings with 22.44% and 11.27%, respectively. 19.37%. If Milei implements such a policy after coming to power, it will have a great impact on the economies of the three countries.

(Argentina’s export country list)

(Argentina import country table)

We are breaking down the data and looking at the impact of H.S code 9405. China’s imports to Argentina were $122,559,705.00, accounting for 88.1% of Argentina’s total imports; we can understand that Argentina’s lighting market is supported by China. . If China loses Argentina’s lighting industry, it will have a devastating blow to the entire Chinese lighting industry.

(Importing country under item 9405)

(Amount and growth rate of increase under item 9405)

In addition, as countries along the Belt and Road Initiative, can the currency swap between Argentina and China continue? I believe many people are paying attention to this issue

(SIRA requires importers to declare the import destination and register it. The declaration is valid for 90 days. The Central Bank of Argentina (BCRA) and the Ministry of Trade will evaluate the information submitted by the importer and inform the importer when it can enter the official foreign exchange market for foreign exchange transactions.)

SIRA declaration in RMB: If the importer requires import payment in RMB when requesting import authorization and obtains a SIRA declaration in RMB, the importer can only submit the payment to RMB on the expiry of the payment date specified by the BCRA and the Secretary of Commerce in its SIRA declaration. The bank submits the RMB payment request.

▪ SIRA declaration in USD or other currency: When an importer’s trade documents identify the currency of transaction as USD or other currency, and when requesting import authorization they require that import charges be paid in that currency, they will obtain a SIRA declaration in USD or other currency .

In this case, if the importer wants to pay in RMB, he must first apply to the Argentine Tax Authority (AFIP) to change the SIRA declaration from US dollars or other currencies to RMB.

After the new SIRA declaration is issued, the importer still has to wait until the payment date specified by BCRA and the Secretary of Commerce in the new SIRA declaration expires before submitting a RMB payment request to the bank.

It is unknown what economic and foreign trade issues Milei will implement after taking office. There are many presidents whose actual policies and campaign policies after taking office are different, so let us wait and see.

In addition, I think it is very unlikely that Milei will cut off the trade relationship between China and Argentina, because the cooperation between the two countries is in-depth cooperation in many aspects, and forcibly cutting off the connection will only make Argentina’s economy worse.

Mondial is a professional lighting company that has been established for more than ten years and has a very professional sales and technical team.If you have more questions about LED drivers that you would like to discuss, please contact us. Looking forward to communicating with you.

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