Río Grande seeks investment in China: the municipal move

Municipalities as promoters of foreign direct investment

Municipalities are increasingly acting as autonomous players in the promotion of foreign direct investment (FDI), a role historically reserved for national and provincial governments, amid the growing fragmentation of subnational economic diplomacy in Latin America. Attracting FDI and ensuring that such investment benefits local businesses, workers and households depends on the ability of municipalities to promote their most attractive assets, such as the city's existing talent base, its ties with SMEs, large companies and trade unions, its infrastructure and its innovation ecosystem.

Río Grande's municipal move to attract investment

Martín Pérez, mayor of the city of Rio Grande in the province of Tierra del Fuego, recently traveled to China seeking investment and aiming to strengthen ties with the Chinese city of Benxi in the northwest of the country.

"In addition to strengthening institutional ties, we are touring companies and holding meetings with various players in the productive sector because we want to show the potential Río Grande has to receive investment. Our city has industrial capabilities, skilled human resources and a strategic location" Martín Pérez. Mayor of Río Grande, Province of Tierra del Fuego. Argentina

The challenges raised against Law 19,640, which promotes the settlement and industrialization of the Province of Tierra del Fuego through the establishment of a special customs territory. Added to the divestments by some technology-based companies located in the province, driven by the massive influx of imports from Southeast Asia, this has prompted the municipality to seek a leading role. The lack of a comprehensive industrial policy from the national government is being filled by subnational entities seeking to attract FDI

"In a complex context for industry and employment in our province, we believe it is essential to go out and seek opportunities. That is why we are visiting companies, presenting Río Grande's capabilities and promoting ties that can lead to concrete investments. Our commitment is to keep working to create jobs, strengthen the local productive fabric and open new development horizons for our city" Martín Pérez.

When trade grows, investment grows

In 2025 China was Argentina's second-largest trading partner. Our country's exports amounted to almost USD 18,000 million, while imports reached almost USD 10,000 million, and given the lack of investment outside the RIGI framework, it is necessary to seek alternatives with trading partners. When trade grows, investment grows. Over the past five years China has deployed a significant direct investment policy in several countries such as Serbia, Uzbekistan and Turkey, which are among the 20 countries where Chinese exports have grown the most. It is also making a large number of investments in Brazil, mainly in the automotive sector, with investments by the companies BYD and GWM.

Imports and exports between China and Argentina in 2025

Source: INDEC

Chinese cities and their model for promoting productive investment

In our previous article we highlighted the importance of municipalities in China's industrial development through attracting FDI and promoting exports. This is a path Argentine municipalities can follow in this new context. Learning from the Asian experience and taking advantage of the productive expansion of its companies into other countries is possible.

Driving initiatives such as the one deployed by the municipality of Río Grande may prove key to the productive development of Latin American municipalities. These initiatives require building a bottom-up strategy, coordinated from the municipalities themselves and embedded in the region, the province and the country, that ensures the sustained achievement of the objectives set over time.

References:

"Martín Pérez impulsa en China una agenda de cooperación, inversiones y desarrollo para Río Grande" (Martín Pérez promotes in China an agenda of cooperation, investment and development for Río Grande), June 11, 2026

info.riogrande.gob.ar

"Pérez explora en China nuevas inversiones para Río Grande ante la caída industrial" (Pérez explores new investment in China for Río Grande amid industrial decline), 06-19-2026

lapoliticaonline.com