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Joining the Silk Road will bring billions to Brazil: railways, highways and a new era of Chinese investment promise to revolutionize Latin America
China has presented the world with one of the largest infrastructure and investment projects in history. It is the 'New Silk Road', an initiative that has already moved more than 1 trillion dollars in works infrastructure such as ports, highways, railways and energy projects in more than 150 countries, mainly in Africa, South America and the Middle East.
Brazil's accession to the investment project, formally called the 'Belt and Road Initiative', is on the agenda of Chinese President Xi Jinping's visit to Rio de Janeiro in November for the G20 meeting.
Washington on alert! Brazil and China adjust details for entry into Silk Road
The Brazilian government is preparing for a strategic decision: joining the Silk Road, an initiative led by China, which promises massive investments in infrastructure works. With a focus on highways, railways and other areas crucial to development, Brazil carefully evaluates the impacts of this adhesion.
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An inter-ministerial working group was recently formed to analyze the potential of this partnership with China. The investment proposal could strengthen trade relations between Brazil and China, but it also raises concerns in Brasília about the US reaction, especially in the event of Donald Trump winning the US presidential election. Proximity to Washington is seen as essential for Brazil's diplomatic balance, which makes this decision even more delicate.
Construction promises to connect Brazil to the world's largest market
Sources close to the government indicate that the Chinese embassy in Brazil hopes to formalize the country's entry into the initiative during Xi Jinping's visit in November. The Silk Road is China's strategy to integrate global investments and economies around a vast trade project centered in Beijing. With colossal investments in projects ranging from railways to highways in several countries, Brazil is in the crosshairs of this economic integration, which promises to accelerate the country's development in strategic areas.
However, diplomats at the Foreign Ministry have advised President Luiz Inácio Lula da Silva to postpone the announcement until the results of the US elections, scheduled for November 5, are known. The concern is clear: a Trump victory could harm relations between Brazil and Washington if the country announces its support for Chinese investments in the Silk Road before the end of the elections.
Lula himself has expressed support for Kamala Harris, the Democratic candidate for president of the United States, and has said in meetings with Brazilian leaders that he expects her to win. The move to invest in the Silk Road, coupled with support for Harris, could be seen as a move away from Washington, especially under a Republican administration that has taken a more critical stance toward China.
Participation in the Silk Road would be a “fundamental measure” in long-term relations between Brazil and China
The decision to join the Chinese initiative began to be considered in June, when former President Dilma Rousseff, now head of the BRICS Bank, presented the benefits of investments in joining the Lula government. The working group created to evaluate the proposal includes important figures, such as the Minister of the Civil House, Rui Costa, and Vice President Geraldo Alckmin, and is expected to meet after the UN General Assembly to discuss the issue.
Lula, in public statements made in July, said that Brazil is carefully considering what it can gain from joining the Silk Road investments. Joining the initiative would be an opportunity for the country to position itself as a strategic link in Latin American trade routes, especially at a time when the government is seeking to reindustrialize and strengthen South American integration.
The Chinese embassy, in turn, highlighted that Brazil's participation in the Silk Road would be a “fundamental measure”, signaling stability in long-term relations between the two countries. Furthermore, China believes that this partnership is fully in line with Lula's investment and economic development plans, including the acceleration of growth and the integration routes of Latin America.
So far, neither the Chinese embassy in Brasilia nor the Brazilian Foreign Ministry have responded to requests for comment on the latest developments in these negotiations. The expectation is that the details will be discussed and possibly announced soon, depending on the political scenario in the US and the diplomatic strategies of the Brazilian government.
I'm 80 years old and I want to see Brazil on the Silk Road this year.