China is Brazil’s main commercial partner. The bilateral commerce between Brazil and China was R$ 56 bi in 2010, with China registering R$ 5 bi surplus.In 2009, China became Brazil’s main trading partner, leaving the US in the second place. From US$ 2 billion in 2000 to US$ 56 billion 2010, bilateral trade between Brazil and the Middle Kingdom has soared in the past decade. The relationship is primarily based on Brazil’s exports of commodities (mainly iron ore and soybeans) and imports of manufactured goods.
Virtually everyone I talk to, in any industry, has his business somehow affected by China. Usually, in China there is either cheaper suppliers or opportunity to reach a new huge market or both.
In Brazil, we use the expression « negócios da China » or « business from China » to refer to very good business deals, even when deals are not at all related to the Asian superpower.
As I pointed in an earlier post, « The Chinese Empire Strikes, » I don’t consider China like “Japan from the 80’s” as some argue. I strongly believe they are here to stay. Therefore, I believe that deeply understanding Brazil’s main commercial partner and world’s second largest economy will not only open one’s horizons but also unveil many viable opportunities.
A year ago I had already the visa stamped on my passport to work in Shangai as a trader for Noble Group. However, after one of those unexpected twists of life, I ended up going to Paris to start masters at ESCP-Europe rather than working in the Asian version of New York.
Today, I am confident life won’t surprise me, and soon I will be arriving in the Middle Kingdom, where I will stay at least for four months. I am landing in Beijing but I will be very mobile.
I hope to have the same luck as Dilma Rousseff. After only 6 days in China, the Brazilian president left with promises of billions of direct investment and some real deals.
Promises : Chinese interest in a planned $21 billion, high-speed railway linking Rio de Janeiro and Sao Paulo as well as a line of credit that from Chinese banks to Petrobras.
Real Deals : Embraer, a national champion, secured an order of up to $1.4 billion for its mid-sized E-190 commercial jet and authorization to assemble its Legacy corporate jet in China. Concretely, 20 bilateral agreements between Dilma and Hu Jintao and 13 deals between Brazilian and Chinese companies were signed.
(For more on China and Brazil, I suggest Reuters analysis : « China eases Brazil’s concerns with investments. »)
This optimistic blogger hopes to be here describing his successful « negócios da China » in the following months.