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China Targets Brazil as Strategic Partner in the Midst of Global Trade War

06/26/2018 - 11h02



Neither the Brazilian crisis nor even the commercial trade war between China and the United States has affected the Chinese investment plan for Brazil. To the contrary, the global dispute that China is dealing with could reinforce its bet on Brazil as a strategic alliance partner.

On the Chinese investor map Brazil stands out as the only country of continental dimensions that doesn't have political, border or sovereignty hindrances compared to countries like Russia, India and the United States, according to analysts.

"China sees Brazil as a country where capital and technology can flow to idle capacity", says Kevin Tang, Executive Director of the Brazil-China Chamber of Commerce.

Electrical energy, one of the sectors in which the Chinese have invested significantly in the country in the last two years is an example of this.

Agribusiness is likely to attract more Chinese investment, especially with the escalation of the trade war with the North Americans.

Latin America's advance should accelerate with the region's inclusion in the "New Silk Road" according to a report published by Moody's investor service released on Monday (the 25th).

At the beginning of the year the Chinese announced that Latin America would become an integral part of the "One Belt, One Road" mega-plan of investments by the Chinese Government to inject billions of Dollars in major infrastructure projects throughout Asia, Africa, the Middle East and Europe.

Being included in this plan carries significant weight for Brazil as the country attracted 56.4% of all of the Chinese resources invested in the region between 2003 and 2016, an amount totaling US$ 110 billion.

Translated by LLOYD HARDER

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