Argentina's economy is sinking again as a huge US dollar bailout failed to stop the peso from collapsing, pushing Milei back toward China for help — bad news for Argentina and for the idea of dollarization.

• The US arranged up to $40 billion to prop up Milei before his elections, but the peso has already re-collapsed to a record low.
• Since 2009 the peso has lost more than 99% of its value, and Argentina is short of dollars again as farmers hold back exports waiting for a bigger devaluation.
• The economy is shrinking, bad household loans are at a 20-year high, and interest rates are already near 29%, leaving Milei few options.
• Argentina renewed a $19 billion currency swap with China so it can buy machinery, chips, and goods without spending scarce dollars.
• China is now Argentina's second-biggest trading partner, and it owes the IMF $57 billion, forcing Milei to lean on Beijing despite his anti-China talk.

Outlook: With another US bailout politically unlikely and big IMF payments due through 2032, Argentina is set to lean harder on China, pushing more emerging economies toward the RMB.