As local media in Argentina and independent intelligence reports have confirmed that China was indeed trying to establish a "gateway" to Antarctica, experts are concerned about the development because the construction of a new naval base would allow the People’s Liberation Army Navy (PLAN) to exert control over a crucial passage between the two oceans, raising concerns among military experts and government officials around the world.  According to most observers, from the proposed base Chinese military personnel would be able to monitor communications throughout the Southern hemisphere, something that will give China the ability to intercept regional communications with a clear economic and strategic impact.

Furthermore, it would allow for permanent monitoring of maritime transit in the area and, at the same time, grant China a permanent enclave in the Southern hemisphere. This could also potentially allow Beijing to build additional facilities and deploy naval and military contingents in the region, depending on the conditions negotiated with Argentina.

"China is Argentina's second biggest trade partner, after Brazil, and the second most important destination for Argentine exports."

China has been trying to increase its economic influence over the Latin American country by making heavy investments in the region, enabling the Chinese Communist Party (CCP) to build influence and putting them in a strategically significant position. Anticipating that foreign-affairs experts will raise suspicion over Chinese investments in this region, Chinese officials clarified that its investments in Argentina will not affect the country's sovereignty in any way. However, the latest currency-swap deal for expansion signed between the two countries has raised doubts over China’s intentions, as the deal is likely to benefit Bejing more than Buenos Aires by further advancing the yuan's internationalization. According to China’s central bank’s 2022 RMB report, China is Argentina's second biggest trade partner, after Brazil, and the second most important destination for Argentine exports.

Chinese experts, however, project that the agreement would be more beneficial to Argentina. They claim that it will help the Buenos Aires hedge against shocks brought about by the US' financial policy tightening, while promoting its own industrial development. Argentina's government needs to rebuild reserves to cover trade costs and future debt repayments, and more reserves are a key objective of a major debt deal with the International Monetary Fund (IMF). As per terms and conditions of the deal, the swap will comprise the exchange of currency for reinforcement of international reserves of 19.2 billion US dollars and a special activation of 35 billion yuan to compensate operations on the foreign exchange market. The deal also indicates that Argentina is determined to seek loans from China to gear up development, as the Latin American country had before tasted the US' dollar hegemony and how Argentina slid into a debt crisis as a result, Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China, stated. However, the Sri-Lanka debt loan story cannot be ignored, as China indirectly pushed Sri Lanka to financial emergency.

In February 2022, China added Argentina to its Belt and Road Initiative (BRI), strengthening bilateral political and trade relations while also further advancing China’s interests in Latin America. Many Chinese policymakers viewed Argentina as an alternative source of agricultural and food trade, including beef and soybeans, while Buenos Aires considered China a source of funding for industry and infrastructure. Chinese interests have also recently eyed investment in lithium mining in Argentina, an important development given the soaring demand for this soft metal for use in specialized batteries for electric vehicles.

"Argentina had a diplomatic tension with China over Chinese fishing activities near its coast in March 2016, when a Chinese fishing vessel was sunk by the Argentine coast guard after being caught within the country’s exclusive economic zone."

To make matters even more complicated, China has been eyeing on Antarctica through tourism and it has allowed Argentina to position itself as a springboard for growing numbers of tourists from China to Antarctica. It may be noted that before the pandemic, there had been an emerging boom in Chinese tourism to the continent, as both polar and adventure tourism have grown in popularity. But China-Argentina diplomatic relations were never so smooth. Argentina had a diplomatic tension with China over Chinese fishing activities near its coast in March 2016, when a Chinese fishing vessel was sunk, with no casualties, by the Argentine coast guard after being caught within the country’s exclusive economic zone. Since then, there have been several additional incidents of Argentine waters being breached by Chinese fishing boats, recently prompting Buenos Aires to deploy new patrol vessels to better combat the problem. The new quest for Antarctica may solve short-term problems for both sides, but leave many questions open in the long term.