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

    No More Space Race for US, Rivalry Gives Way to Collaboration

    What began as a struggle for dominance in space between two world powers has changed entirely to one of joint efforts

    Beijing Warns Critics Over South China Sea Dispute

    Official warns critics that the more they challenge China's position regarding disputed territories in one of world’s busiest waterways, the more it will push back

    Move Over Millennials, Here Comes iGeneration

    How the first generation to be born, almost literally, with a smartphone in hand, might change America

    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.
    Image Recognition Market Seen Doubling by 2020i
    X
    Ramon Taylor
    May 05, 2016 10:05 PM
    From auto tagging on Facebook to self-driving cars, image recognition technology as it exists today is still in its beginning phases, experts say — and will soon change the way users and corporations interact with the physical world. VOA's Ramon Taylor reports.
    Video

    Video Image Recognition Market Seen Doubling by 2020

    From auto tagging on Facebook to self-driving cars, image recognition technology as it exists today is still in its beginning phases, experts say — and will soon change the way users and corporations interact with the physical world. VOA's Ramon Taylor reports.
    Video

    Video Child Labor in Afghanistan Remains a Problem

    With war still raging in Afghanistan, the country also faces the problem of child labor as families put their school-age children to work to help make ends meet. But, thanks to VOA's Afghan Service, two families whose children had been working in a brick-making factory - to earn their livings and pay off family debts - now have a new lease on life. Zabihullah Ghazi reports.
    Video

    Video Kurdish Troops Recount Firefight Which Killed US Navy SEAL

    A U.S. Navy SEAL killed Tuesday, when Islamic State fighters punched through Kurdish lines in northern Iraq, was part of a quick reaction force sent to extract other U.S. troops trapped by the surprise offensive. VOA's Kawa Omar spoke with Kurdish troops in the town of Telskuf -- the scene of what U.S. officials called a "dynamic firefight."
    Video

    Video British Lawmakers Warn EU Exit Talks Could Last A Decade

    Leaving the European Union would mean difficult negotiations that could take years to complete, according to a bipartisan group of British lawmakers. While the group did not recommend a vote either way, the lawmakers noted trade deals between the EU and non-EU states take between four and nine years on average. Henry Ridgwell reports on the mounting debate over whether Britain should stay or exit the EU as the June vote approaches.
    Video

    Video NASA Astronauts Train for Commercial Space Flights

    Since the last Shuttle flight in 2011, the United States has been relying on Russian rockets to launch fresh crews to the International Space Station. But that may change in the next few years. NASA and several private space companies are developing advanced capsules capable of taking humans into low orbit and beyond. As VOA's George Putic reports, astronauts are already training for commercial spacecraft in flight simulators.
    Video

    Video US Worried Political Chaos in Iraq Will Hurt IS Fight

    The White House is expressing concern about rising political chaos in Iraq and the impact it could have on the fight against the Islamic State. The U.S. says Iraq needs a stable, central government to help push back the group. But some say Baghdad may not have a unified government any time soon. VOA's White House correspondent Mary Alice Salinas reports.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.
    Video

    Video EU Visa Block Threatens To Derail EU-Turkey Migrant Deal

    Turkish citizens could soon benefit from visa-free travel to Europe as part of the recent deal between the EU and Ankara to stem the flow of refugees. In return, Turkey has pledged to keep the migrants on Turkish soil and crack down on those who are smuggling them. Brussels is set to publish its latest progress report Wednesday — but as Henry Ridgwell reports from London, many EU lawmakers are threatening to veto the deal over human rights concerns.
    Video

    Video Tensions Rising Ahead of South China Sea Ruling

    As the Philippines awaits an international arbitration ruling on a challenge to China's claims to nearly all of the South China Sea, it is already becoming clear that regardless of which way the decision goes, the dispute is intensifying. VOA’s Bill Ide has more from Beijing.
    Video

    Video Painting Captures President Lincoln Assassination Aftermath

    A newly restored painting captures the moments following President Abraham Lincoln’s assassination in 1865. It was recently unveiled at Ford’s Theatre in Washington, where America’s 16th president was shot. It is the only known painting by an eyewitness that captures the horror of that fateful night. VOA’s Julie Taboh tells us more about the painting and what it took to restore it to its original condition.

    Special Report

    Adrift The Invisible African Diaspora

    More Americas News

    Colombia Arrests Alleged Big Money Launderer From Panama

    Colombian police arrested Nidal Waked who is sought by US, dismantled an empire of businesses that Washington says were part of a top worldwide money-laundering organization for drug traffickers

    FIFA Life Bans for 2 South American Officials for Bribery

    FIFA ethics committee judging chamber says it found Luis Bedoya, a former FIFA executive committee member from Colombia, and Sergio Jadue of Chile guilty of wrongdoing including bribery and conflicts of interes

    Candidate Kuczynski: Investors Eager to Finance Peru's Infrastructure

    Ex-PM says a lunch with investors in US produced one offer of $5 billion; nation can finance projects 'without depleting our fiscal reserves,' he insists

    Canada Fire Hit as Government Cut Spending on Prevention, Planes

    In recent days raging wildfire has swept across the city of Fort McMurray, forcing a mass evacuation as hundreds of homes burned to the ground

    Canadian Officials Say Wildfire Conditions 'Extreme'

    Alberta government declares state of emergency, orders residents to evacuate communities of Anzac, Gregoire Lake Estates, Mackenzie County and Fort McMurray First Nation, an aboriginal reservation

    Smog Stays Bad; Mexico City Extends Traffic Cutback

    40 percent of cars and trucks are being ordered to stay off the streets Thursday