Explaining Brazil #198: China raises red flags in Brazil

China reported horrific economic results in April. Retail sales were down 11 percent from a year earlier, against an expected decline of less than 7 percent.

Car production took a 41-percent nosedive while overall industrial output was down 2.9 percent. Meanwhile, China’s jobless rate rose to 6.1 percent, its highest since the February 2020 peak. The list of poor economic figures just goes on and on and on.

Given the sheer importance of China for Brazilian exporters, any hiccups with the Asian giant can have major implications in Brazil. And it’s not as if Brazil was growing in a buoyant fashion, to begin with … 

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Guest:

• Mauricio Santoro holds a Ph.D. in Political Science. He is currently an Assistant Professor and Head of the Department of International Relations at the State University of Rio de Janeiro. He also writes op-eds for The Brazilian Report. He wrote “Brazil–China Relations in the 21st Century: The Making of a Strategic Partnership.”

This episode used music from Uppbeat. License codes: UPDGNDXIRLFBUKOM, SVHIG4T4I7RECDBK.

Background reading:

• China’s strict zero-Covid policy is creating issues concerning port terminals, supply chains, and demand — potentially spelling torment for Brazilian companies, as finance reporter Ana Ferraz explained.
• Beijing is already the main trade partner of most countries in Latin America and it is looking to expand its influence on multiple fronts, writes Ignacio Portes.
• One facet of this growing influence was China’s vaccine diplomacy in the region, as we explained in episode #150 of this podcast. Early in 2021, Brazil even used its 5G auction as a bargaining chip to receive more coronavirus vaccines.
• Remember episode #57: How should Brazil deal with China?
• Brazil’s dependence on a limited portfolio of exports to China is risky – but a recent report explores how the e-commerce sector could provide opportunities for diversification.
• New guidelines on greening China’s overseas investment should take note of the Amazon’s unique qualities. Representatives of Colombian NGO Derecho, Ambiente y Recursos Naturales write about how Belt and Road proposals can be adapted for the Amazon.

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• #china
• #diplomacy
• #trade