once china starts exporting energy to brazil i expect the trade equation to change, but even in the current circumstances, the equation looks sustainable
unclear in terms of your history-doesn't-matter 18th century 'dependency' equation whether the trade is advantageous, as if the equation matters, as long as it is voluntary
http://www.brazilgovnews.gov.br/news/2017/10/exports-to-china-boost-trade-balance
Exports to China boost trade balanceForeign TradeA long-standing trading partner, China has established itself as the most important market for Brazilian products. The country's interest in Brazilian raw materials has had a decisive role for Brazil's trade balance.
Brazil's foreign trade surplus is expected to end the year above US$ 60 billion, largely driven by trade with China. Exchanges with the Asian country added to US$ 18.2 billion in September, at least 30% of overall trade in year-to-date terms.
Brazil's best-selling product, crushed soybeans, has China as its main buyer: 78% of our crushed soybeans are sold to the country, representing US$ 18 billion of the US$ 23 billion exported to all countries in 2017.
It is another example of China's importance to the Brazilian trade balance. The country is among our largest importers and exporters, with soy, iron one, crude oil and pulp among the top exports on the Brazilian side.
On the other hand, most of our purchases from China are of technology-intensive products, such as printed circuits and telephone parts, receiver and transmitter parts and other manufactured goods.
Performance per block
China's overall trade importance also outstrips the flow of trade with important trade blocs, such as the European Union.
From January to September, Brazil-EU trade added to a US$ 2.04 billion surplus, driven mainly by soybean meal, iron ore, crushed soybeans and raw coffee.
In the case of the Southeast Asian bloc, which does not include China, the trade balance was of US$ 3.06 billion over the same period. Exchanges with neighbouring Mercosur countries, while higher (US$ 7.7 billion), are still far from Brazil's volume of trade with China. |
