Re <<Brazil ... China>>
Looks like you are correct.
wsj.com
Brazil Deepens China Ties in About-FacePresident Bolsonaro reaches out as domestic economy sputters
Paulo TrevisaniUpdated Nov. 15, 2019 11:51 am ET
Brazil's President Jair Bolsonaro, right, hosted China’s President Xi Jinping on Thursday. Photo: Mikhail Metzel/TASS/Zuma PressBRASÍLIA—As a fiery conservative candidate last year, President Jair Bolsonaro warned that China was a rapacious predator out to exploit Brazil and he pledged loyalty to a leader he called his American idol, Donald Trump.
Less than a year into his presidency and unable to revive a flat economy, an ebullient Mr. Bolsonaro hosted China’s President Xi Jinping in this capital for a two-day summit of the world’s leading emerging nations that ended Thursday.
Though he sharply criticizes communist regimes, Mr. Bolsonaro now openly expresses interest in getting Chinese capital to finance a large pipeline of roads, railways, ports, power plants and other infrastructure his administration considers vital to unleash a subpar economy projected to grow 1% this year.
“I am happy with the opportunity to discuss a large bilateral agenda,” Mr. Bolsonaro said to reporters after a closed-door meeting with Mr. Xi. “I see Brazil-China cooperation with enthusiasm.”
Mr. Bolsonaro’s about-face comes after disappointments with the U.S., even though the Brazilian leader has a warm personal relationship with Mr. Trump and shares similar views.
Earlier this year, Mr. Bolsonaro expressed confidence Washington would strongly back Brazil’s request to join the so-called rich countries’ club, the Organization for Economic Cooperation and Development, but neighboring Argentina received backing first. A trade deal with the U.S., about which Mr. Bolsonaro also had publicly mused, is in only the early stages and would face headwinds from American farmers worried about Brazil’s powerful agricultural sector.
Big CustomerBrazil hopes to boost sales to China, alreadythe country's largest export market.
.billionExports to ChinaImports from China2000’05’10’150102030405060$70
China, on the other hand, is already Brazil’s largest trading partner, with commerce reaching $100 billion annually. And China has an insatiable appetite for this country’s commodities and an interest in expanding its investment portfolio.
“We are discussing ways to expand Brazilian exports to China beyond basic materials,” Marcos Troyjo, Brazil’s trade chief, said in an interview Thursday. “We want to include processed food, mineral products with added value, perhaps some manufactured goods.”
He explained that Mr. Bolsonaro has “instructed us to negotiate with every country in the world without any ideological bias.”
China didn’t respond to Mr. Bolsonaro’s provocations during the campaign or in the early weeks of his presidency. Instead, in October, Mr. Xi hosted Mr. Bolsonaro at a state visit and signed a spate of agreements.
Just two months before, when Mr. Bolsonaro was embroiled in a spat over his handling of the Amazon with European leaders, the Chinese government sided with Brazil. The Chinese ambassador here, Qu Yuhui, publicly said that the Amazon crisis was a “bit fabricated.”
The support resonated with the embattled Brazilian leader.
“To the Chinese government, thank you,” Mr. Bolsonaro said in a speech during his visit to Beijing. “For us, this support is priceless.”
China’s deep interest and commitment were on display earlier this month when two Chinese companies won rights to develop offshore oil deposits in an auction that saw no American company place a bid.
Mr. Bolsonaro’s meeting with Mr. Xi came as part of the two-day annual gathering of leaders of the so-called BRICs nations: Brazil, Russia, India, China and South Africa.
Economists say that closer ties with China make economic sense and could benefit Brazil, which has the benefit of a weakened currency. On Thursday, the real closed at 4.19 per dollar, much weaker than the 1.56 per dollar more than a decade ago when Brazilian commodity exports to China were skyrocketing. This year through October, Brazil accumulated a $21.5 billion trade surplus with China and a $1.1 billion deficit with the U.S.
“The last time Brazil did a push to cozy up to China the real was a lot stronger,” said Aldo Musacchio, an expert on Brazilian business at Brandeis University. “I think Brazil has a more competitive position now.”
Brazil’s ties to China, though, will be tested when Brazil upgrades to a fifth-generation cellular network about a year from now.
China’s Huawei Technologies Co. will be the most likely technology supplier, creating a challenge for Brazil because Mr. Trump has been pressuring U.S. allies to ban Huawei 5G equipment. He says the Chinese technology would bring cybersecurity risks.
Huawei Brazil told The Wall Street Journal in an email that the company has been in Brazil for 21 years and is ready to be a supplier in 5G networks, as it is in other countries. “Cybersecurity and privacy are our top priorities,” it said.
Some of Mr. Bolsonaro’s closest advisers are pushing for a ban on Chinese telecom suppliers for ideological reasons, said political risk consultant Thiago de Aragão. But he believes Brazil is more likely to welcome Huawei technology.
“The economy hasn’t taken off as expected under Bolsonaro,” he said. “They can’t afford ditching China.”
Corrections & Amplifications
Aldo Musacchio is an expert on Brazilian business at Brandeis University. An earlier version of this article misspelled his name as Also Musacchio. (Nov. 15, 2019) |
