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Montevideo, March 23rd 2019 - 14:47 UTC

The delicate balance of ‘cooperation’ and ‘competition’ between China and Brazil

Saturday, April 2nd 2011 - 06:53 UTC
Full article 5 comments
President Rousseff concerned with China’s manufactured goods advance in the Brazilian market President Rousseff concerned with China’s manufactured goods advance in the Brazilian market

Brazilian president Dilma Rousseff and her Chinese peer Hu Jintao will address the Libyan crisis and other issues related to the Chinese currency, Yuan, which has Brazilian manufacturers most concerned, anticipated the Brazilian Foreign Affairs ministry.

“Brazil and China share positions in many issues of the global agenda” and Libya is an issue which interests both countries, said Ambassador Maria Edileuza Fontenele Reis during a press round at Itamaraty.

Rousseff will be making her first official visit to China in two weeks time in coincidence with a summit of leaders from BRICS the group which also includes Russia, India, China and the latest addition South Africa.

The Brazilian president is scheduled to stay four days in China.

Ambassador Fontenele Reis said that relations with China are “crucial” for Brazil, which last year became the country’s main trade partner displacing United States with bilateral exchanges reaching 36 billion US dollars.

However the Brazilian government spurred by local industrial associations is increasingly concerned with the advance of Chinese manufactured imports in the domestic market because of what it describes as the “cheap Yuan”.

“We have a promising future with China, but we also have foreign exchange difficulties”, admitted the ambassador while bilateral discussions are ongoing to agree on the content of Rousseff’s agenda for her coming trip.

Between the Asian and Latinamerican giants, “there’s a delicate balance between ‘cooperation’ and ‘competition’” said Ambassador Fontenele Reis.
 

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  • briton

    China has over the years destroyed most manfacturing companys
    in the west in part by undercutting them, and flooding the markets with cheap shoddy goods, thereby taking the lions share of the market,
    most European markets and American markets now rely so much on china, that when or if the enevatible happens , a lot of people will get hurt, and many companys may well go under, exept of course for the likes of britain and germany, britain has not invested much in china,
    at this point in time she has not much to invest.
    On the other hand, as Germany has long defended her own industries, and invested in germany , she may well make a profit, china is now looking to south America , she would like to jump into bed with Brazil,
    im not saying that brazil should not do buisiness with china, rather than be very carefull and protect her own industries, South America is open for trade, and the rest of the world is very interested, trade carefully or be ripped off, just my opinion.

    Apr 02nd, 2011 - 12:01 pm 0
  • GeoffWard

    It is truely a tough tiger to ride, but ride it we all must.
    Because once our once-great manufacturing bases moved their operations to cheap China, there was no turning back - one goes, all must go; a first rule of the economics of competition and pricing.
    Brasil's low labour costs gave her a little leeway and a bit more time, but now it is time for her to ride the same tiger and address the same problems as the developed world.
    Perhaps the value of the Yuan cannot be addressed by one country alone - and if the USA can't shift China then Brasil will not.
    Bringing the Yuan into the global currency group will help, as will the gradual rise in the salaries and expectations of Chinese workers - but by then the balances of (trading) power may be set in a new stone.

    In the shorter term, Dilma can address barriers to trade, tariffs, commodity price fluctuation problems, and the quality of goods traded to Brasil vis a vis the quality traded to the developed countries of the world.
    So much to do and so little time - pity we did not start 10 years ago.

    Apr 02nd, 2011 - 02:14 pm 0
  • yul

    Basicly,an Economic System is structured on
    Total Employment/Total Population ( e/p)

    US (e/p) = 154 millions/ 310 millions
    CHINA(e/p) = 300 millions/1.5 billion is enough
    to become World's No/1 economic power even by lower technology.

    I use Chinamade computer - modem--mouse - browser...
    I 'm listening music from Chinamade radio now...
    There are Chinamade nightlamp ,clock ,telephone on my table......
    ......etc...etc...

    Produce cheaper them , I buy.... if you can ...!

    Apr 02nd, 2011 - 03:14 pm 0
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