News / Americas

Brazilian Economy Grows as Trade With China Increases

Unlike many other nations that saw their economies shrink during the global recession, Brazil emerged relatively unscathed.  And according to government figures there, Brazil will see a seven percent increase this year.  Some analysts say this growth has been fueled by increased exports to China, now Brazil's largest trading partner.  But other observers say the current exports will not empower Brazil in the long run.  

Brazil made it through the global economic crisis relatively unaffected for two reasons, says Sergio Amaral, a long time official in Brazil's foreign ministry. He says one is because of government loans that kept domestic production levels up.

"And the second point is that I think China played an important role because China is now our first trading partner and China has been expanding its imports from Brazil," Amaral said.

Trading partnership

In 2009, China replaced the United States as Brazil's top trading partner.

But Amaral, who is also the president of the China Brazil Business Council, says China took the top spot due to the damage caused by the global recession on the U.S. economy.

"The exports to the US declined not because of China, but because of decline in demand from the US," Amaral explained. "I think as soon as the US economy recovers we'll increase our exports to the US too, because these are different types of products that we sell to the United States and China."

Amaral explains that markets in North America and Europe import more expensive, industrialized goods, including steel and airplane parts.  Whereas trade with China revolves mainly around the export of raw materials, like iron ore and agricultural products such as soybeans.    

Will boost last?

But some analysts say while Brazil's reliance on exporting these primary commodities to China has given a boost to the economy in recent years, it will not sustain growth in the long run.

Gilmar Masiero lectures in economics at the University of Sao Paulo. He says exporting soybeans and iron ore does not create enough jobs to really impact Brazil's economy. Masiero says if trade with China is to provide Brazil with continued economic growth and create jobs for Brazilians, then it must broaden beyond commodities.

"If we build more technological partnerships with countries who are more or less in the same level of development that we are then we can grow together and we can be competitive in specific sectors that must be new emerging technological sectors and not put our efforts in old industries," Masiero said.

Sergio Amaral at the China Brazil Business Council agrees the type of exports must change.  But he says he sees a change in Sino-Brazilian relations taking place already.

"I think there is an evolution, recently, I think this year, the outstanding point is not trade, its investment," Amaral said.  "Chinese companies are expected to invest $10 billion in Brazil this year and this year China will be the largest investor in Brazil."

Amaral says Chinese companies will invest in telecommunications and infrastructure projects.  And that includes a bid to construct a high-speed train line between Sao Paulo and Rio de Janeiro ahead of Brazil's hosting of the 2014 World Cup.

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
South Africa Sees Male Circumcision as Way to Reduce HIV Infectionsi
X
November 28, 2014 3:31 PM
South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video South Africa Sees Male Circumcision as Way to Reduce HIV Infections

South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.

All About America

AppleAndroid

More Americas News

Venezuela Says Will Push OPEC Until Oil Reaches $100

Saudi Arabia blocked calls from poorer members of the OPEC oil exporter group for production cuts at a meeting in Vienna
More

Mexican Leader Announces Nationwide Crime Crackdown

Announcement comes as 11 mutilated bodies found in violence-racked Guerrero state
More

Soccer Icon Pele Moved to Special Care Unit

Legendary soccer player's personal aide says Pele, who is suffering a urinary tract infection, is 'completely fine,' move was primarily to protect his privacy
More

Venezuela’s Military Introduces Hugo Chavez Course

Fans say it promotes late leader’s humanist values; critics deride it as deification
More

Video Talks on New UN Climate Treaty Set Next Week in Peru

Representatives from 200 countries will discuss emissions reductions, setting stage for broader talks in 2015
More

Colombia's FARC Free Two Soldiers to Restart Talks

Troops taken captive in restive eastern department of Arauca in November 9 military operation freed with help of ICRC
More