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

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Nigerian Islamic School Tries to Combat Boko Haram

Kaduna school headmaster teaches his students that what militants are doing is are doing is 'a total misunderstanding of the Islamic religion' More

University Trains Students to Advocate for Deaf People Worldwide

Program prepares graduates to advocate internationally for access to education, jobs for people with disabilities 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.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

More Americas News

Urbanization Can Bring Health Risks

Researchers warn of increase in heart disease, diabetes
More

US Restricts Travel by Venezuelan Government Officials

Restriction to apply to officials the State Department links to human rights abuses in government crackdown on protest and dissent
More

US Sanctions Venezuelan Officials for Rights Violations

State Department official would not publicly identify individuals because of visa record confidentiality
More

Time Almost Up for Argentina, US Bondholders in Debt Talks

South American nation has until end of Wednesday to either pay in full 'holdout' hedge funds, cut a deal or win a stay on court order that triggeered deadline
More

Football Star's Stepfather Kidnapped, Released

Lawyer for family of Argentina's Carlos Tevez said player's stepfather appeared to be unharmed
More

Video Young Migrants From Central America Risk Life and Limb to Get to US

For tens of thousands of young people trip north is fraught with hardship and danger
More