China increasing clout in South America: expert

China has growing presence in South America as an importer, a strategic investor and economic partner, Argentine economist Dante Sica said Thursday.

"Today, China represents 11 percent of the region's trade," Sica said during a seminar called "The International Crisis and its Impact on International Business" held at the Pro Buenos Aires Foundation in Argentina's capital.

China's commitment to the region includes the signing of a 10.2-billion -U.S. dollar currency swap agreement between the People's Bank of China and Argentina's central bank in March.

This is the largest financial transaction between China and a Latin American country. According to the agreement, Argentina can pay for its imported products from China in RMB, replacing the U.S. dollar from acting as an intermediary currency between the countries.

By doing this, "China has begun to set itself up as a lender of last resort in order to safeguard the resources needed by its internal market and industrial complex," Sica explained.

Source: Xinhua