BEIJING (Dow Jones)--Argentina and China Tuesday signed agreements under which China will invest $10 billion dollars in the South American country's railways sector.

The deals came during a visit to China by Argentine President Cristina Fernandez, at a time when the two countries are in dispute over a number of trade issues.

One pact calls for China to invest in 10 separate rail projects in Argentina valued at $10 billion, including construction of railway lines and equipment, over the next two-to-five years, said Juan Pablo Schiavi, Secretary of Transport.

Among these is a $2.5 billion rail renovation project in the capital Buenos Aires, he said.

China's state-run Xinhua news agency reported Tuesday that six bilateral cooperation contracts had so far been signed by the two countries during the visit.

These included cooperation in Argentina's construction of a light rail system and subway building, it said.

It said China will provide export credit to Argentina for purchases of locomotives, and that additional bilateral cooperation documents could be signed later Tuesday.

Argentina is looking to restore what is a largely dilapidated rail network that spans some 10,000 kilometers through 13 provinces.

On July 2, officials in Argentina signalled that rail deals were likely to be signed soon with China, involving the building of trains for Argentina and the supply of electrification technology and other equipment.

In April, China tightened import rules for Argentine soyoil, a move widely seen as retaliation for barriers Argentina imposed last year on Chinese products.

China was the single largest buyer of Argentine soyoil in 2009, taking 46% of its exports, but that has now fallen to just 1%, according to Argentine research firm Abeceb.com.

China Ministry of Foreign Affairs spokesman Qin Gang, quizzed about the dispute Tuesday, said, "This is a policy issue that has come up in the development of trade between the two countries. I believe the two sides can, in a bilateral spirit, through good coordination, find a way to resolve this issue."

Despite the rough spots, economic ties in other sectors have been reinforced in recent months, in particular in the energy sector.

In March, China's Cnooc Ltd. (CEO) agreed to form an oil and gas production joint venture with Argentina's Bridas Energy Holdings Ltd., in a US$3.1 billion move to boost its production and reserves.