China, as part of its bid to lead the way in the manufacturing of high-speed rail technology, has signed a deal with Argentina to invest $10 billion in the South American nation’s railways.The money will go towards a refurbishment of the Belgrano Cargas and a $1.85 billion deal to upgrade the Ferrocarril Belgrano Norte y Sur.

The accord works in tandem with other infrastructure projects Beijing is working on with Argentina through investments in oil and other commodities. Argentina was China’s largest supplier of soybean oil until recent trade disputes, Bloomgberg reported.

The Belgrano Cargas train network goes along the main soybean producing area of Argentina, though the two countries have yet to discuss the soy ban.

On China’s end, the country is promoting its own exports of railway equipment as it attempts to become the leader in high-speed rail technology.

CSR, one of China’s major railway equipment manufacturers, has claimed to sign contracts to export products worth $1.2 billion in 2009, as opposed to less than $59 million in 2001.

They are now looking to expand in other developing countries after exporting trains to Singapore and Australia last year.

Using China’s advantage at assembly, the Chinese Ministry of Railways has brought in high-speed train technology from France, Germany and Japan attempting to expand on them.

Currently at least 10,000 km of high-speed rail line is now under construction. The United States has shown interest in the product as well.

Going by other sectors of manufacturing, China may soon dominate the HSR market with quick and cheaper production.