China and Brazil: Deeper and wider potential for growth

Editor's note: Brazilian President Luiz Inacio Lula da Silva is scheduled to pay a state visit to China from April 12 to 15. Both China and Brazil are significant emerging market economies and significant developing nations of BRICS. What are the highlights of this visit? What message does the visit convey? How will the trip enhance bilateral cooperation of the two countries? Alessandro Golombiewski Teixeira, former Brazilian minister of tourism and former special economic advisor to the president of Brazil, gave us some clues. The views expressed in the video are his own and not necessarily those of CGTN.

CGTN: China and Brazil have enjoyed a sincere relationship over the years as Brazil is the first developing country to establish a strategic partnership with China. This visit is Lula's fifth visit to China. Although Lula had to delay the trip due to illness, he resumed the visit at the soonest. How's this visit different from previous ones? What special message does this trip convey?

Alessandro Golombiewski Teixeira: I believe this is a very special visit. It's the first visit of President Lula in his third mandate. And also the relationship between Brazil and China has increased a lot. So for example, in the first year of the first mandate of President Lula, the bilateral trade was only $8 billion. And now in 2022, we have a trade of more than $141 billion (According to the General Administration of Customs of China, two-way trade between China and Brazil reached $171.49 billion in 2022). That's amazing. But President Lula and President Xi, share more than just trade. They share a vision of the world. They want world peace. They want development. They are in different multilateral groups together like the BRICS, like G20. So I think it's a very special moment for Brazil and China because they share a vision of the world. President Xi and President Lula, they are human-centric.

CGTN: It is reported that Lula has a delegation of more than 200 business people from over 140 industries during his visit. What message does Lula's supersized delegation convey? How will this visit help improve the trade diversification between the two countries?

Alessandro: As you mentioned, over 200. It is the first time in history that we have over 200 businessmen here from 140 different industries. That shows how we engage Brazil and China in progress in these economic relations. So that shows how important is the relationship between China and Brazil. First, because it (China) is the first trade partner. Second, because it's one of the largest investors. But we do have a lot of Brazilian companies coming to China now, not only to export but also to invest. So that's very, very important. The two major developing countries come together in having an agenda that is not just economics. It's political and social. It's always good to remember that one of the objectives of Brazil is to eradicate poverty for revitalization. So it is the same agenda as in China.

CGTN: On March 29, China and Brazil agreed to trade in their own currencies instead of the US dollar. What impact will the latest move make on diversifying the international monetary system?

Alessandro: I think that's very important news for Brazil and China, and also for the future of BRICS. Brazil and China are large trade partners. When they say or they accept that we can do exchange in terms of using local currency, they are saying that Brazil can sell their products receiving RMB and Chinese can sell their products and receive reals. That's one way we reduce the dependency on the dollar, and that's very important. So the weaponization of the dollar will not work in that sense. Secondly, we can have investments in local currency. That is very important because it can increase the investment on both sides. We can help small and medium enterprise companies to do more trade because they don't need to go to international banks, especially on the side of Brazil. They don't need to try to get an international financial system. They can use the Brazilian and the Chinese system that is very strong and very solid. So I think all the elements are very important. And when we see that experience, and if it works well, we can take that to the BRICS countries using the RMB as one of the instruments to promote and foster that. So I think it's a win-win game.

CGTN: According to media reports, one of the US's priorities in Latin America involves "containing" China and greatly increasing Washington's influence in the region. How will Brazil balance its relations with China and the US, two of its most important global partners?

Alessandro: Brazil is an independent country, so it takes its own decisions. I think President Lula believes that the United States shares some vision with Brazil. For example, if the United States decided that it want to play a multilateral role, it's good. But right now, what we see from the U.S. is very rhetoric talking, not concrete measures. In the case of China, no, it is different. It's concrete measures. So we are talking about Belt and Road Initiative. We are talking about participation in multilateral organizations. We are talking about BRICS mechanisms. So I believe that Brazil will balance this relationship with its own interests. But as a matter of fact, we need to realize that the relationship between China and Brazil is a better relationship in terms of trade, in terms of investment.