Brazil can join China's MEGAPROJECT worth 11 TRILLION reais, changing the country's economy forever; US warns about the risks of a financial 'trap'

China has proposed an ambitious alliance that could transform Brazil's economy forever, integrating the country into a global infrastructure project valued at more than 2 trillion dollars, equivalent to around 11 trillion reais.

But this proposal, which seems like a boost to growth, also raises doubts about the real benefits that Brazil could reap from this partnership.

The Chinese government suggested combining the works of the new PAC (Growth Acceleration Program), relaunched by the president Luiz Inácio Lula da Silva, international investments under the Belt and Road initiative, known as the new Silk Road, according to the Exame website.

This monumental project aims to connect the world through a global infrastructure network, and China sees Brazil as a key piece in this puzzle.

However, there is no specific information about the exact amount that would be invested in Brazil if the country joined the New Silk Road.

The proposal mentions the possibility of partnerships in strategic areas such as agriculture, green and digital economy, artificial intelligence and others, but does not detail a specific amount allocated to Brazil.

During a recent visit to Brasilia, Chinese Foreign Minister Wang Yi highlighted the importance of closer cooperation between the two countries. In a speech at the Itamaraty Palace, he suggested that the governments of Brazil and China work together to align the objectives between the Belt and Road initiative and the Brazilian PAC.

The discussion about Brazil's adherence to the Belt and Road Initiative is still ongoing and could culminate in Chinese leader Xi Jinping's visit to Brazil in November, right after the G20 summit, reported the newspaper Folha de S. Paulo. Xi Jinping has been pressing for Brazil to formalize its entry into the initiative since Lula's visit to China, in April 2023.

Brazilian government has doubts about the partnership with China

However, the Brazilian government Haven't made a decision yet definitive. While recognizing the potential of the partnership, there are skepticism about the practical advantages to formally join the project, given that Chinese investments already flow into the country without this formalization.

Palácio do Planalto has sought to attract Chinese companies to participate in the New PAC works, through concessions, public-private partnerships (PPPs) and the supply of materials and equipment. The idea is to integrate these companies into the Brazilian development process, but without necessarily committing the country to joining the Chinese project.

In its 10 years of existence, the New Silk Road has already moved around 11,42 trillion reais (approximately 2 trillion dollars) in infrastructure contracts, with 147 countries participating or showing interest in participating of this global network. Despite its success, the initiative faces criticism from Western countries, including the United States.

US calls proposal a trap

The US accuses China of using the project as a 'debt trap', stating that many countries end up burdened with unpayable debts after getting involved in projects financed by Beijing.

In response, China denies these allegations, arguing that the New Silk Road offers development opportunities that many countries, especially developing ones, would not have otherwise.

To counter China's growing influence, the USA, in partnership with India, the European Union, Saudi Arabia and the United Arab Emirates, launched the proposal to create a India-Middle East-Europe Economic Corridor, aiming to establish an alternative to the New Silk Road.

This corridor aims to connect producers and consumers through a transport infrastructure network, offering a new route for global trade.

With this power struggle between the largest economies in the world, Brazil finds itself at the center of a crucial strategic decision: align with China and its monumental New Silk Road, or seek other partnerships that can offer different paths for its economic development.

Now, with the imminent arrival of Xi Jinping in Brazil, the question that arises is: Should Brazil join the New Silk Road and accept trillions of dollars in Chinese investments, or would this be a dangerous trap that could compromise the country's economic future? What do you think, reader? Leave your answer in the comments!