At the invitation of Chinese President Xi Jinping, Brazilian President Luiz Inacio Lula da Silva will visit China from April 12 to 15. He will lead a large delegation of over 200 people to visit Shanghai and Beijing.
“President Lula is visiting the important trade partners of Brazil and has the major Brazilian companies to visit China with him,” said Paulo Feldmann, Professor of Economics at the University of São Paulo and Author of Management in Latin America: Threats and Opportunities in the Globalized World.
At the end of 2022, Paulo Feldmann joined a team to discuss transitioning from the old government to the new one. He shared insights into President Lula’s visit to China in an exclusive interview with GDToday.
Lula to boost China-Brazil cooperation for development
China is the fourth country that Lula visited after taking office in January, following Argentina, Uruguay, and the United States, and also the first major country he visited outside of the Americas. “Brazil is a neutral country in terms of foreign policy, and it wants to improve relations with China,” Feldmann said.
Feldmann pointed out that China is Brazil’s important trade, commerce, export, and import partner. Lula’s visit to China aims to expand markets for his agricultural powerhouse as well as to bring advanced technologies from that nation, which is a rapidly developing, diverse nation with a wide range of industries.
Feldmann expressed his vision for Brazil’s re-industrialization. He believes that Brazil urgently needs to adjust its industrial structure. Statistics show that Brazil's manufacturing industry once accounted for 30% of Brazil's GDP in the 80s of last century. However, by the end of 2021, the share of manufacturing in Brazil's GDP had fallen to 9%.
“Brazil has lost its manufacturing industry and needs to recover it. China could give us great support,” Feldmann comments.
BRI will bring new opportunities to South American countries
As a part of President Xi’s global development concept, the Belt and Road Initiative (BRI) has received strong support from all over the world. However, Brazil has not yet joined the BRI, so attention is now focused on whether President Lula will do so this time.
“Surely, Brazil needs to participate in the BRI”, said Feldmann. In his view, the BRI is a great opportunity for Brazil’s infrastructure. “Brazil has very poor transport, and we don’t have good trains. The other problem that we have is related to electricity,” he said, adding that more cooperation is expected in areas related to sustainability and climate change, such as electric cars.
In addition, Feldmann believes that Brazil can improve the quality of education by taking advantage of the BRI, and providing talent for the development of high-value-added industries.
He told GDToday that the State Grid Corporation of China and the China Three Gorges Corporation have undertaken a number of hydropower projects in Brazil, which is an example of China-Brazil cooperation.
Over the past decade, the BRI has become a popular international platform for international cooperation, covering two-thirds of the world’s countries (regions) and one-third of international organizations. “BRI should be an initiative in all of South America,” he said.
BRICS could be the most important platform for emerging countries
On March 29, China and Brazil reached an agreement to trade in their own currencies, instead of using the USD as an intermediary. Feldmann regards it as a very positive deal, “because it will reduce costs for Brazilian and Chinese traders.”
“China should be the most important partner of Brazil. But when I mentioned partnership, I mention that China can support the development of Brazil. It’s different from the partnership that we have with the US,” Feldmann said, adding “The US only has an interest in the Brazilian market. So the Brazil-US partnership is dedicated to American companies.”
As for Lula, who actively promoted the establishment and cooperation of the BRICS organization during his first term, BRICS issues are also considered one of the highlights of his trip.
In addition to Argentina and Iran, Mexico, Algeria, Saudi Arabia, Türkiye and Egypt have also been preparing to apply for BRICS membership recently. In Feldmann's view, as an important organization of emerging economies, BRICS countries should continue to expand, deepen South-South cooperation, and achieve mutual benefit and win-win results.
Feldmann highly praised the role of BRICS cooperation. “BRICS, in my opinion, could be the most important platform for emerging countries. It’s very important to have other countries joining BRICS, like Mexico, Argentina, and many Asian countries,” he said.
He noted that the BRICS could become a driving force for promoting balanced economic development. “The BRICS could aid developing nations in requesting greater cooperation from developed nations.”
Feldmann furthered that BRICS countries should strengthen cooperation on global governance issues and speak out for emerging countries on such topics as trade, education, and climate change.
Author | Hannah, Yao Jingsen (intern)
Script | Hannah, Li Fuying (intern)
Video editing | Zoey
Poster | Lulu
Editor | Wing, Steven, Jasmine, James
