REUTERS in Buenos Aires and STAFF REPORTER in Beijing

Argentina recognised China as a "market economy" yesterday as President Hu Jintao wound up his two-day visit to the South American country.

In exchange, the mainland will open its enormous market to more Argentine products. Market-economy status will limit Argentina's ability to slap anti-dumping sanctions on China.

"We have arranged with Chinese officials that Argentine exports to China will rise above the current level by at least US$4 billion," Argentine cabinet chief Alberto Fernandez said.

On Wednesday, Mr Hu and Argentine President Nestor Kirchner signed accords that could bring more than US$19 billion in Chinese investment to Argentina during the next 10 years.

Argentina also announced that the mainland would permit imports of Argentine processed beef products, poultry, pears and apples. The new sales are expected to bring in US$300 million over the next two years.

"Argentina has not made any commitments regarding the importation of Chinese goods. Both parties have agreed to increase Argentine exports to China, and this is exclusively what has been agreed," Mr Fernandez said.

Speaking in Beijing, Foreign Ministry spokeswoman Zhang Qiyue said that at this weekend's Asia-Pacific Economic Co-operation forum in Santiago, Chile, Mr Hu was expected to discuss the establishment of an Asia-Pacific financial development centre.

Mr Hu was also expected to put forward an energy initiative as a response to recent turbulence in that market.

Rising demand for energy to fuel growth has spurred China's search for new energy resources, which could lead to clashes with neighbouring countries over claims on the continental shelf.

Ms Zhang said the initiative was aimed at improving co-operation and developing new resources, and included a scheme for alleviating poverty to benefit all parties.