Partnership Between Brazil and China Expected to Expand Areas of Energy, Bioeconomy, and Urbanization in the Coming Years

On the Eve of the BRICS Summit, Which Will Bring Together Brazil, Russia, India, China, and South Africa in Brasília Next Week, Massive Investments and Job Creation in Brazil Are at the Highest Scale of Government Optimism

Academics and experts in Brazil-China relations and businesspeople from both countries expressed optimism about the expansion of bilateral relations and business opportunities. Infrastructure, pre-salt, and bioeconomy are the main focuses of China in the Country. On the other hand, the increasing urbanization in China has altered consumption habits, especially regarding food, creating opportunities for Brazilian agribusiness exports.

These are some of the conclusions from three panels of debates held by CEBRI (Brazilian Center for International Relations) during the international seminar “Brazil-China Partnership: Trends and Opportunities,” sponsored by Vale and in partnership with the Academic Center for China Economic Practice and Thought (ACCEPT) of Tsinghua University and the Brazil-China Business Council (CEBC), at the Museum of Tomorrow in Rio, this Wednesday (11.07).

“CEBRI has been paying special attention to China, regarding the commercial relationship between the countries, and the opportunities to advance these partnerships, especially through innovation and sustainability policies from China,” highlighted Anna Jaguaribe, Member of the Curatorial Council of the Brazilian Center for International Relations (CEBRI) and Director of the Institute for Brazil-China Studies (IBRACH). The event is part of the parallel program to the XI BRICS Summit.

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The event addressed the main trends in ongoing transformations in China, especially in light of increasing urbanization, consumption growth, and demographic transition. For Chinese representatives, Chen TaoTao, Director of the Latin America Center at Tsinghua University (business environment, capabilities of new Chinese multinationals), and Pepe Zhang, Associate Director at the Atlantic Council, discussed the significant changes the Country is undergoing with urbanization, transitioning from the interior to the coast, driven by the opportunities arising from large investments in port logistics over the past 40 years. This occurs in contrast to Latin America, which was colonized from the coast and expanded inward. According to them, there is a need for infrastructure to support this migration, with intense job creation, especially in technology production, and consequently, changes in consumption behavior for products, such as food, which are no longer grown locally and are starting to be imported.

According to the former Brazilian ambassador to China, Marcos Caramuru, and Counselor at CEBRI, while there is immense competition for foreigners wanting to do business in China, due to the verticalization of the economy, quality, and innovation developed in the local market, there is also a wide avenue of opportunities, as consumption accounts for around 70% of China’s GDP growth, while investments are at 30%. “Consumption is growing, and this consumption is led by the urban youth, who, unlike their parents and grandparents, are willing to incur debt,” he commented, highlighting that current urbanization is around 60%, while in Latin America it stands at 80%.

Present at the seminar hosted by CEBRI to discuss trends and challenges, BRF and Suzano are two companies that are strongly active in the Chinese market, one focused on food exports and the other on paper and cellulose exports. A commonality between both is their previously built capacity to meet the demands of Chinese consumers, such as traceability technology, strict environmental regulations regarding production at the source, and intense control throughout the production process. “China has focused efforts on very disciplined public environmental policies, which have already produced positive effects on water, soil, and air, and require the same efforts from their suppliers,” assessed Pablo Machado, Director of Institutional Relations at Suzano.

The event also addressed convergences and possibilities for joint work in ecosystems of innovation, connectivity, and digitalization, with participation from Paulo Dallari, Director of Institutional Relations at 99 in Brazil, a company acquired by the Chinese Didi Chuxing, and Brazilian experts in funding these new technologies. According to Marcelo Porteiro, Superintendent of the Operations and Digital Channels Area at BNDES, technology has disruptive power to change the operations of small businesses. “Sometimes this is hindered by a lack of financeable mechanisms, and this is where the Bank intends to act, facilitating the development of small businesses, whether through incentives for startups or other means.”

Adriano Proença, Professor at the Federal University of Rio de Janeiro (UFRJ) and Member of the Scientific Council of the Institute for Brazil-China Studies (IBRACH), a leading expert in the study of “Sinocentrism,” the strong movement that brought Chinese investments to Brazil, believes that the synergy between the two countries can bring Brazil long-term experience. The planning cycles are very long-term, and this may be the Chinese differentiator that can serve as a reference for Brazil toward sustainable development. Celina Bottino, Project Director at the Institute of Technology and Society (ITS-Rio), emphasized that in addition to long-term planning, there is a concern for social inclusion in all development strategies and infrastructure investments.

Source: CEBRI