Mario Osava of the Inter Press Service is critical of the emergent China-Brazil relationship, noting critics who argue that Brazil’s exports to China are overdominated by commodities, with few value-added goods.
Oil and iron ore make up nearly 80 percent of Brazil’s exports to China. Hence China’s interest in improving this country’s transport infrastructure, to reduce the cost of Brazil’s exports, besides providing work for China’s construction companies now that domestic demand is waning.
Another agreement opens up the Chinese market to exports of cattle on the hoof from Brazil.
Brazil has exported some industrial products to China, mainly from the aeronautics industry. The sale of 22 planes from the Empresa Brasileira de Aeronáutica (Embraer) to a Chinese company was finalised during Li’s visit. A prior accord had established the sale of a total of 60.
Bilateral trade amounted to 77.9 billion dollars in 2014, with a trade surplus for Brazil, although it is shrinking due to the fall in commodity prices. The goal is to reach 100 billion dollars in trade in the near future, according to the Chinese prime minister.
The stronger relations, especially the increase in Chinese investment, “could be positive for Brazil, but we have to control our enthusiasm over the closer ties,” said Luis Afonso Lima, president of the Brazilian Society of Transnational Corporations and Economic Globalisation.
“China may have more to gain than us in this process: they are seeking suppliers (of raw materials) throughout Latin America, but without any urgency because their economy has slowed down; they can think things through strategically, with a view to the long term,” the economist told IPS.