The size of the delegation already shows the importance of this trip for the Brazilian government. President Lula da Silva arrived in China on Tuesday for a four-day state visit. Also present: 240 entrepreneurs and managers, 39 members of Congress, eight ministers, four governors and the President of the Senate.
It is a clear signal that Brasilia wants a deepening of the relationship and more investments from China. China has been Brazil’s most important trading partner for several years. 31 percent of exports go to the Asian country and 22 percent of imports come from there. They are followed by the USA and Argentina. Brazil mainly ships commodities to China: soybeans, iron ore, oil, sugar and meat. And it imports industrial products: telecommunications equipment, valves and electron tubes, chemical compounds, electrical appliances.
Brazilians expect to sign at least 20 cooperation agreements in China, covering different areas such as health, agriculture, education, industry and science. The size of the Brazilian delegation should therefore also be understood as courting Chinese capital. China’s current investment in Brazil’s is $30 billion. That’s little compared to the more than $2 trillion Chinese companies are investing globally. Brazil dreams of almost seven times the amount to $200 billion and hopes to invest in infrastructure such as rail routes and ports, the 5G network and new factories.
After years of growth, Brazil fell into a deep economic crisis from 2012, the result of which is creeping deindustrialization. Today we are talking about a lost decade. Lula needs to reverse this trend if his third term is to be a success.
Specifically on the agenda is the takeover of a Ford plant in Bahia by the Chinese carmaker BYD, which wants to build electric vehicles there. There is also an intention to put a joint observation satellite into orbit. Brazil is also looking to attract more Chinese tourists after Beijing put the country back on the list of countries that Chinese can visit after long Covid restrictions.
Addiction without a plan?
The Brazilian idea of converting millions of hectares of unused pasture land into agricultural production areas is ambitious. In addition one hopes for Chinese capital, because the conversion of such depleted soils has its price. This would allow Brazil to increase its agricultural production without cutting down forests.
In view of the many Brazilian ideas and wishes, critics complain that the country is haphazardly becoming more and more dependent on China, which is pursuing strategic intentions, such as securing access to Brazilian raw materials.
Such questions aside, Lula’s trip proves that Brasilia is not swayed by rising China-US tensions or the EU’s attempt to become more independent from China. While Washington and Brussels are on a course of confrontation or distancing themselves from Beijing, Brazil is seeking proximity. Behind this is Lula’s attempt to restore his country to the role of a neutral and valued partner in a multipolar world. It held this position prior to the presidency of Jair Bolsonaro.
It is doubtful whether Lula will succeed in winning Xi Jinping over to his peace club. He has in mind a group of countries that mediate in the Ukraine war. Many observers consider the project to be naïve, as Russia shows no interest in negotiations.
