Bright prospects for BRICS cooperation

Source:People's Daily Online Published: 2014-7-14 14:49:38

From May 19 to May 25 2014, Rio Grande do Sul of Brazil held a "Chinese Week" topromote bilateral economic cooperation, technical innovation, and cultural exchange. TheBrazil side undoubtedly directed most of its attention to economic cooperation. In additionto cultural organizations, Chinese participants in the "Chinese Week" also included Huawei,Baidu, LeTV and other Chinese enterprises.

Since last year, most of the regions in Brazil have shown strong momentum in attractingChinese investment, covering infrastructure, automobile and accessory parts, householdappliances, mechanical equipment, oil and gas, renewable energy sources, environmentalprotection and other fields. The cumulative total of China's investment in Brazil nowexceeds $20 billion. Most investing Chinese enterprises are large-scale, some evenamong the fortune Global 500. China and Brazil have harvested fruitful results ininfrastructure, resources and financial cooperation.

Tarso Genro, former Minister of Justice and the governor of Rio Grande do Sul of Brazil,explained that economic and political cooperation between China and Brazil had greatstrategic importance. To develop the relationship with China would substantially benefitBraz, and even wider Latin America.

Since last year, with increasing difficulties on both internal and external fronts, the BRICScountries have suffered a slowdown in economic growth. After over a decade of rapiddevelopment, these countries were experiencing a delayed reaction to the 2008international financial crisis. The 'bear' began to show its teeth in international opinion onthe BRICS.

To maintain growth momentum and become the growth engine of the world economy, theBRICS countries should enhance joint cooperation and press forward with economicrestructuring through cooperation. According to statistics released by Chinese Customs,from January to April 2014 trade between China and Brazil increased rapidly, amountingto $25.9 billion, a year on year growth of 10.9 percent. Li Jinzhang, ChineseAmbassador to Brazil, pointed out in a recent speech that the natural resources, industrialstructures, and development paths of BRICS countries are highly diversified andcomplementary, so these countries have a good basis for cooperation. Currently, the totalforeign trade volume of the BRICS countries makes up 16 percent of the world total, whilethe trade volume between these countries is only $336 billion, making up 1.5 percent ofthe world total, which suggests that the potential for economic cooperation among theBRICS countries has not yet been fully released.

To improve trade and economic cooperation, the BRICS countries should further increasetwo-way investment. China's investment in its BRICS partners has expanded toinfrastructure, manufacturing and other fields. As an important force in boostingemployment, Chinese investment plays an active role in cooperation among BRICScountries and in economic growth throughout Latin America.


Posted in: Diplomacy, Chinese Press

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