Brasilia - With 15 agreements signed in the fields of technology, artificial intelligence, satellite cooperation, agriculture and meat exports, Brazilian President Lula da Silva's visit to China concludes on Saturday.
The Brazilian president arrived in Beijing after stopping in Shanghai to attend the inauguration ceremony of former Brazilian President Dilma Rousseff as president of the BRICS Development Bank, during which he gave a speech in which he stressed that his country seeks to find an alternative to the dollar in the field of international trade, and then met in Beijing with Chinese President Xi Jinping to discuss many files between the two sides.
Brazilian economist Flauseno Antonis Neto believes that the economic importance of Lula da Silva's visit to China is mainly due to the strengthening of trade relations between the two countries, as China is the main partner for Brazilian exports, which are equal to about 30% of the volume of exports.
Antonis adds that the importance of the visit also lies in strengthening the BRICS bloc (whose members include Brazil, Russia, India, China and South Africa) that has been neglected in the past four years, as well as using the Brazilian real and the Chinese yuan to reduce costs by relying on the dollar, seeking to attract Chinese investments in Brazilian infrastructure, as well as exchanging expertise in technical fields.
Brazilian president confirms his quest to find an alternative to the dollar in the field of international trade (Getty Images)
Results of a visit
Economic researcher Almir Cesar Filiu said in a statement to Al Jazeera Net that the most prominent agreement is the transition to a clean economy that reduces carbon emissions, in addition to developing plans to combat food insecurity and expand agricultural exports, strengthening initiatives to reduce dependence on the dollar in bilateral transactions, financing infrastructure projects in Brazil, technology transfer, in addition to taking measures to integrate global production chains between the two countries, and Brazil's commitment to the Belt Initiative and the New Silk Road.
Antonis says that 15 cooperation agreements have been signed between the two countries worth R$50 billion ($10.2 billion) in the technological, scientific, commercial, business and agricultural fields, as well as strengthening diplomatic relations with Brazil's largest economic partner, in addition to aligning on global geopolitical issues, with Sino-Brazilian trade expected to increase, not to mention that the main agreement signed was on science, technology and innovation initiatives.
Agreement signed between the two sides focused on science, technology and innovation initiatives (Getty Images)
Highlights
Almere Filiu believes that China needs to be a leading figure in global capitalism, and it needs allies with great global weight, especially in some key regions such as Latin America, and achieving economic integration with these regions is a major goal for China, especially in the areas of food supply and raw materials, while Brazil needs to increase the volume of its trade and foreign investment to recover its stagnant economy.
"Chinese investments in Brazilian industries are beneficial to Beijing because they allow the transfer of polluting and low-wage manufacturing plants to Brazil, and ensure the flow of raw materials," says Almir Filiu, while Brazil should look for new sources of trade and investment beyond the U.S.-Europe hub.
Antonis Neto believes that the issue goes beyond the economic goals of China and Brazil and goes beyond bilateral trade between the two countries, and that what is happening is akin to the unification of an economic bloc that does not depend on the previous economic powers that existed in the twentieth century.
He pointed out that there is work hard to strengthen the economies of the BRICS countries, because this bloc has large resources of raw materials, labor and technology, in addition to having huge consumer markets, but the only missing is to find a new monetary alternative that serves the economies of this bloc, and this is exactly what President Lula da Silva seeks to reach, in addition to implementing investment and development policies for the BRICS countries through their bank and in local currencies.
Difficulties facing both countries
Almir Filho ruled out China replacing the role played by Brazil, the United States and Europe in whole or in part, noting that Brazil will not move away from Europe and North America. However, if this alliance between Brazil and China brings benefits on the one hand, it increases the contradictions between these two countries on the other.
"For Brazil, BRICS will not replace the IMF or the World Bank, and Chinese companies — such as Huawei or BYD — will not replace companies such as Bosch or General Motors," Filiu said.
Brazil's economic powerhouse is losing from the expansion of China's strategic and central role in our economy, as well as the belief that "Brazil's distance from the United States and Europe really contributes nothing. On the other hand, being a trade and diplomatic partner does not mean that its priority is to develop Brazil and improve its economic situation."
Flauseno Antonis Neto says the main difficulty lies in overcoming the embargo, sabotage and sanctions promoted by the former economic power, the United States, which will thwart the successful Sino-Brazilian relationship.
He adds that a number of media outlets of American-linked institutions saw Lula da Silva's activities in China as a provocation to the United States, and "in fact Lula da Silva did nothing more than defend Brazilian interests."
If the United States is wrestling with China over its technological advancement, Brazil should not side with the United States in this war, and Lula da Silva has done well by continuing to defend the best options for Brazil and for a healthy and balanced relationship between all countries, he said.