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

HRW: Egypt's Trial of Morsi ‘Badly Flawed’

Human Rights Watch says former Egypt leader's detention without charge for more than three weeks after his removal from office violated Egyptian law; government rejects criticism More

Photogallery Lancet Report Calls for Major Investment in Surgery

In its report published by The Lancet, panel of experts says people are dying from conditions easily treated in the operating room such as hernia, appendicitis, obstructed labor, and serious fractures More

Music Industry Under Sway of Digital Revolution

Millions of people in every corner of the Earth now can enjoy a vast variety and quantity of music in a way that has never before been possible 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.
Study: Insecticide Damaging Wild Bee Populationsi
X
April 24, 2015 10:13 PM
A popular but controversial type of insecticide is damaging important wild bee populations, according to a new study. VOA’s Steve Baragona has more.
Video

Video Study: Insecticide Damaging Wild Bee Populations

A popular but controversial type of insecticide is damaging important wild bee populations, according to a new study. VOA’s Steve Baragona has more.
Video

Video Data Servers Could Heat Private Homes

As every computer owner knows, when their machines run a complex program they get pretty hot. In fact, cooling the processors can be expensive, especially when you're dealing with huge banks of computer servers. But what if that energy could heat private homes? VOA’s George Putic reports that a Dutch energy firm aims to do just that.
Video

Video Cinema That Crosses Borders Showcased at Tribeca Film Festival

Among the nearly 100 feature length films being shown at this year’s Tribeca Film Festival in New York City are more than 20 documentaries and features with international appeal, from a film about a Congolese businessman in China, to documentaries shot in Pakistan and diaspora communities in the U.S., to a poetic look at disaffected South African youth. VOA’s Carolyn Weaver has more.
Video

Video UN Confronts Threat of Young Radicals

The radicalization and recruitment of young people into Islamist extremist groups has become a growing challenge for governments worldwide. On Thursday, the U.N. Security Council heard from experts on the issue, which has become a potent threat to international peace and security. VOA’s Margaret Besheer reports.
Video

Video Growing Numbers of Turks Discover Armenian Ancestry

In a climate of improved tolerance, growing numbers of people in Turkey are discovering their grandmothers were Armenian. Hundreds of thousands of Armenians escaped the mass deportations and slaughter of the early 1900's by forced conversion to Islam. Or, Armenian children were taken in by Turkish families and assimilated. Now their stories are increasingly being heard. Dorian Jones reports from Istanbul that the revelations are viewed as an important step.
Video

Video Migrants Trek Through Western Balkans to Reach EU

Migrants from Africa and other places are finding different routes into the European Union in search of a better life. The Associated Press followed one clandestine group to document their trek through the western Balkans to Hungary. Zlatica Hoke reports that the migrants started using that route about four years ago. Since then, it has become the second-most popular path into Western Europe, after the option of sailing from North Africa to Italy.
Video

Video TIME Magazine Honors Activists, Pioneers Seen as Influential

TIME Magazine has released its list of celebrities, leaders and activists, whom it deems the world’s “most influential” in 2015. VOA's Ramon Taylor reports from New York.
Video

Video US Businesses See Cuba as New Frontier

The Obama administration's opening toward Cuba is giving U.S. companies hope they'll be able to do business in Cuba despite the continuation of the U.S. economic embargo against the communist nation. Some American companies have been able to export some products to Cuba, but the recent lifting of Cuba's terrorism designation could relax other restrictions. As VOA's Daniela Schrier reports, corporate heavy hitters are lining up to head across the Florida Straits - though experts urge caution.
Video

Video Kenya Launches Police Recruitment Drive After Terror Attacks

Kenya launched a major police recruitment drive this week as part of a large-scale effort to boost security following a recent spate of terror attacks. VOA’s Gabe Joselow reports that allegations of corruption in the process are raising old concerns about the integrity of Kenya’s security forces.
Video

Video Japan, China in Race for Asia High-Speed Rail Projects

A lucrative competition is underway in Asia for billions of dollars in high-speed rail projects. Cambodia, India, Indonesia, Malaysia Thailand and Vietnam are among the countries planning to move onto the fast track. They are negotiating with Japan and the upstart Chinese who are locked in a duel to revolutionize transportation across Asia. VOA Correspondent Steve Herman in Bangkok has details.
Video

Video Scientists: Mosquitoes Attracted By Our Genes

Some people always seem to get bitten by mosquitoes more than others. Now, scientists have proved that is really the case - and they say it’s all because of genes. It’s hoped the research might lead to new preventative treatments for diseases like malaria, as Henry Ridgwell reports from London.
Video

Video Bible Museum Coming to Washington DC

Washington is the center of American political power and also home to some of the nation’s most visited museums. A new one that will showcase the Bible has skeptics questioning the motives of its conservative Christian funders. VOA religion correspondent Jerome Socolovsky reports.
Video

Video Armenia and Politics of Word 'Genocide'

A century ago this April, hundreds of thousands of Armenians of the Turkish Ottoman empire were deported and massacred, and their culture erased from their traditional lands. While broadly accepted by the U.N. and at least 20 countries as “genocide”, the United States and Turkey have resisted using that word to describe the atrocities that stretched from 1915 to 1923. But Armenians have never forgotten.
Video

Video Afghan First Lady Pledges No Roll Back on Women's Rights

Afghan First Lady Rula Ghani, named one of Time's 100 Most Influential, says women should take part in talks with Taliban. VOA's Rokhsar Azamee has more from Kabul.
Video

Video New Brain Mapping Techniques Could Ease Chronic Pain

From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.

VOA Blogs

More Americas News

Colorful Macaws Bring Beauty to Chaotic Caracas

Long-tailed birds color Venezuelan capital's sky, giving its 5 million residents a moment of quiet respite from noise and crime
More

Colombia's ELN Rebels: Peace Talks Near, Rule Out Jail

Commander's comments come as pressure mounts for President Santos to conclude peace talks with far larger FARC group and to show progress with ELN
More

Photogallery Chile Volcano Still Puffing; Flights Canceled in Argentina

Calbuco, which erupted Wednesday without warning, continues to spew ash, smoke
More

Former Spy Master Flees Argentina Amid Threats

Antonio Stiuso contends government is trying to sully his reputation following death of prosecutor Alberto Nisman
More

Chile, Argentina Cancel Flights as Volcanic Ash Cloud Spreads

Argentina's meteorology service forecast ash cloud could reach La Pampa; more than 4,000 people have been evacuated from immediate area
More

Deals Extend Russia's Energy Cooperation With Argentina

Accords underscore Moscow's effort to enhance South American ties since coming under Western sanctions over Ukraine crisis
More