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By Rodrigo C. Lima, a Brazilian journalist
China could boost Brazilian economy and create new jobs for workforce photo/Nico Nemer
China is ready to boost the world’s economy with a massive global project, known as the Belt & Road initiative. President Xi Jinping and Chinese officials plan to launch a new era on trade agreements and mutual cooperation by creating massive infrastructural projects such as the construction of roads, railways, shipping ports and airports, along with logistics hubs for energy, manufacturing, science and tech innovations centers that would connect the largest parts of the world.
China is becoming a protagonist for the financial markets, as well as pledging future partnerships in Asia, Europe and Africa that offer several advantages including financial integration, tariff reductions and an easier exchanges of people and ideas.
Nevertheless, what seems at first to be more of a “regional focused” project could have huge implications for other countries as well. BRICS (Brazil, Russia, India, China and South Africa) member nations and emerging markets are monitoring the project’s development.
Brazil is a primary example. If China is successful, the largest South American financial market could profit substantially from it.
China is Brazil’s largest trade partner, buying mainly its commodities such as oil, iron and bauxite. On the other hand, Brazil’s economy has struggled in the past few years on account of a recession and the government meltdown.
Accordingly, the Belt & Road could have a major impact on the other side of the Atlantic, since Brazilians are counting on that. Additionally, China’s success would benefit its other partners. Brazilians, even though far away from the new “Silk Road” sphere, believe they will play a crucial role later.
The opportunity can strengthen commercial and diplomatic ties between the two nations.
The project could consolidate more Chinese business ventures in South America, especially in the cities - Rio and São Paulo. Chinese companies are well-placed to capitalize in the local market, securing good deals along with important strategic agreements.
Brazil’s efforts on fiscal consolidation, and its policy to keep interest rate controlled, mean that the government and local private sector should rely on foreign capital to increase investments that would boost the economy.
The Chinese are willing to invest abroad, establishing a mutual bond between the two Titans that would enhance the “China-Brazil” partnership.
The Belt & Road pledges to connect the world far beyond its point of return, embarking on a “Silk Speedway.” Amid anti-globalization rhetoric, China could become the front runner for commercialization, innovation and technology.
As Brazilians love to say, “if you can’t beat them, join them,” so it’s better to have the Chinese as global partners.
Rodrigo C. Lima, a Brazilian freelance reporter, has worked closely with media outlets in Brazil, Spain and USA. He is a former Peking University exchange-student and Master's student at University of São Paulo.
(The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com)
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