China and Brazil should focus on economic synergy

Source:Global Times Published: 2017/9/6 23:18:39

Illustration: Luo Xuan/GT

Editor's Note: 

The BRICS Xiamen Summit concluded on Tuesday, with China and Brazil having agreed to deepen their cooperation in all aspects. According to China's Ministry of Commerce, China has been Brazil's principal trading partner for the past eight years. On the sidelines of the summit, Carlos Eduardo Abijaodi (A), industrial development director at the National Confederation of Industry in Brazil, talked with Global Times reporters Shan Jie and Bai Yunyi (GT) and offered some suggestions about how the two countries could improve bilateral cooperation.

GT: From your perspective, which are the most promising areas for economic cooperation between China and Brazil in the coming years?

A: Among the subjects being discussed by the BRICS countries, we have selected eight work groups for deeper discussions. They can be more detailed and can find exactly how they can focus on specific matters that can be of interest for the five countries.

We have infrastructure, agricultural business, green energy, education and training; so there is a lot further to go in this discussion. We have more to discuss across all the subjects that are of interest to the five countries of the BRICS.

GT: What do you think of the potential for cooperation in infrastructure between China and Brazil?

A: It is very interesting. For Brazil and for the other four countries, they need very good infrastructure in order to facilitate trade and investment. Brazil lacks infrastructure. China is more developed and we see here that China has very good infrastructure.

However, Brazil is very large and so is China, so there is a need for railways, ports, highways and energy. There are large fields to be explored in these sectors.

GT: Could you recommend some specific infrastructure projects for Chinese investors in Brazil?

A: China is very strong in the energy sector, and it has a large percentage of the transmission lines in Brazil and energy production. So this is a very important sector that is now being managed by Chinese companies.

Railways are also important. Logistics is an area of particular interest to Chinese investors, because China buys a lot from Brazil. We have to speed up the production and transport the goods more quickly and in a more secure way. So we need more railroads, as the production in Brazil - of soya beans and grains, for example - is based inland, in the middle of Brazil, and the goods must be transported to the ports. So if you have good transportation, then you can have lower prices, greater speed and more safety, which is something that could interest Chinese companies.

GT: Compared with other countries, what unique advantages does Brazil have to offer to foreign investors, especially to Chinese investors?

A: Brazil is special because Brazil has lots of natural resources and agriculture, which are needed by all the world.

At the moment we have a lot of room for investment and for new projects, such as technological projects. Technology is something that Brazil needs a lot. We also have a great number of manufacturers, but they need to be updated technologically, and this is something on which China and Brazil can cooperate.

In 2008, Europe and the US suffered a lot as the global depression gathered pace. At that time, the effects were not so strong in Brazil, but we suffered the effects later. Also, in Brazil we had political problems that had an effect on the economy.

However, we can see that this recession is something that will not last for a long time, and Brazil has enough capacity to recover, like Russia. I believe that Brazil will be able to recover in a relatively short time.

Posted in: INSIDER'S EYE

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