CBN Special丨China-Brazil relations set sail in the next “golden 50 years”

2024年11月22日 19:10 21世纪经济报道 21财经APP 李莹亮

This week marks the 50th anniversary of diplomatic relations between China and Brazil.

The commemoration comes with a groundbreaking announcement: The two countries have elevated their ties to a China-Brazil community with a shared future for a more just world and a more sustainable planet, and agreed to align the Belt and Road Initiative (BRI) with Brazil's development strategies.

China and Brazil have also signed 37 bilateral agreements that range from protocols on agricultural exports and joint projects in innovative technology to plans for enhancing AI capabilities and promoting sustainable mining practices.

Over the past half-century, the two nations have made significant achievements in economic and trade cooperation, strengthening bilateral economic and trade ties.

China has been Brazil's largest trading partner for 15 consecutive years and is a major source of foreign investment, while Brazil has long been China's top trading partner in Latin America.

China's trade with Brazil increased by nearly 10 percent in the first 10 months of 2024, as China's annual imports from Brazil in the past three years have stayed above USD100 billion.

According to Chinese customs, trade with the South American country grew by 9.9 percent year-on-year to reach 1.14 trillion yuan (USD157.62 billion), maintaining steady growth and outpacing China's overall trade growth rate by 4.7 percentage points.

Beyond traditional manufacturing and goods trade, Chinese companies have actively participated in renewable energy projects in Brazil, including hydropower, solar and wind energy projects. This involvement in green economic development has further diversified and advanced China-Brazil investment cooperation.

A recent analysis by Brazilian digital media outlet Poder360 estimated such investment from Chinese enterprises alone has exceeded USD51 billion.

Earlier this year, State Grid Corp of China won a 30-year franchise agreement to build a 1,500-kilometer transmission line in northeast Brazil.

China’s “new three exports” - electric vehicles (EVs), lithium-ion batteries, and photovoltaic (PV) panels - to continental Latin America have surged from USD3.2 billion in 2019 to USD8.9 billion in 2023, with Brazil absorbing 63 percent of these imports by value last year.

China’s apparent focus on Brazil for new three exports can be attributed to the size of the Brazilian market, strong environmental and policy fundamentals, and the influence of Beijing’s trade and investment diplomacy.

Cultural exchanges between China and Brazil have also thrived, strengthening the friendship between their peoples. To celebrate the 50th anniversary of diplomatic relations, the Brazilian city of Recife has designated 2024 as the "Year of China" to foster a conducive environment for cultural relations.

Over the past five decades, China and Brazil have nurtured a partnership that has grown in depth and breadth, mirroring the broader shifts in international power dynamics. As the world's second-largest economy and Latin America's most influential nation, their relationship has far-reaching implications beyond their bilateral ties.

The China-Brazil partnership is largely founded on their economic complementarity. Brazil's abundance of natural resources, including agricultural products like soybeans and meat, and minerals like iron ore, align seamlessly with China's vast market demands. For China, Brazil provides critical raw materials and a strategic entry point for common development with South America.

Beyond economics, in a rapidly changing world, China and Brazil are coordinating closely and consistently within multilateral frameworks, such as the UN, G20 and BRICS, on crucial issues, including global governance and climate change, amplifying the voices of developing countries and safeguarding the interests of emerging markets.

In May, China and Brazil jointly issued a six-point common understanding on political settlement of the Ukraine crisis, receiving a positive response from the international community.

Meanwhile, the two countries, together with some other Global South countries, launched the group of "Friends for Peace" on the crisis, with the goal of bringing together more voices for peace.

In terms of poverty reduction, both countries are determined to tackle challenges and are willing to share their solutions with others.

Looking back, the two sides have every reason to be proud of the achievements in their relations. Looking ahead, the China-Brazil partnership is poised to become even more integral to the global geopolitical calculus. Their cooperation is both an emblem of the benefits of South-South collaboration and a harbinger of the increasing complexity of international relations in the 21st century.