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China- Brazil relations

Trade relations:

Trade:

China is increasing investment in Brazil, with financing oil exploration to repairing railways.The repair of railways and infrastructure came ahead of the Rio Olympics in 2016. There is also a trade phase from raw materials to heavy equipment and industrial goods. The two countries have also signed a currency agreement that will include up to $30 billion dollars worth of Chinese Yuan and Brazilian Rea l. This deal was signed to provide an alternative currency to the US Dollar with respect to the Chinese Yuan. China is considered Brazil's largest trading parters.

Economy:Chinese customers of American based ethanol will be economically pressed to find alternative ethanol sources due to US-China tariffs. In the next few years fuel ethanol will not meet demand for ethanol in China. Chinese Corporations may turn to Brazil in the near future to meet market demand. Brazil has recently in the last few years been exporting raw materials to China. Brazil in turn import manufactured goods from the People's Republic.

Trade

Brazil and China are members of an economic organization called BRICS, also consisting of Russia, India, and South Africa. China contributes 41% of the total operating budget. Brazil contributes 18% of the operating budget. China and Brazil are part of a greater goal, to increase trade among rising and developing markets. Due to the US-China tariff dispute, the source of soy from the US coming in to China will be decreasing. Whereas the Brazilian soy market is becoming more favorable to the Chinese. China sees Brazil as another source of soy.

Economy:

Trade between China and Brazil was worth almost $80 US Dollars as of 2014. China is expanding economic ties into Latin America, and Brazil falls into that category. China is investing a Brazilian electric transmission line from the Amazon, as well as importing Brazilian planes and beef. China and Brazil while both members of BRICS,are competing for influence in Latin America. Brazil is considered a regional powerhouse in Latin America. China seeks more access to raw materials from Latin American countries such as Argentina and Venezuela to fuel their manufacturing economy.

Infrastructure:

China, Peru, and Brazil in 2015, proposed a plan to build a railway starting from the Atlantic Coast in Brazil to the Pacific Coast in Peru. China agreed to financially support the railway project. Due to recent recession in Brazil, and environmental concern regarding the Amazon Rainforest, the project has not been put into action. The transcontiential rail system would cut freight expenses and time for China by using the proposed railway to ship materials from Brazil and Peru. China has been the largest trading partner of Brazil since 2009.

Economy

As of 2017, China began construction of a Northern Brazil based seaport that will primarily ship foodstuffs to their home country. Communicated and service based products have also been flowing into the Brazilian market as a result of the infrastructure project. With China's plan of investing in development around the world, the Latin American country received the benefit of the future Chinese international investment plan. With infrastructure development of Brazil seaports and waterways, access to the Chinese soy markets is expected to increase.

Trade:

In November 2015, several steel organizations from Brazil, along with Mexico, the European Union, and the United States advocated that countries doing business with China should evaluate their trading behavior before accepting China as a Market economy. In 2016, Brazil remained neutral in the China World Trade Organization debate, and their market status in metal sector. China has put up challenges to those who question who question their market economy. China has been accused of dumping their exports into Brazilian market.

Economy:

In 2016,as two respective members of the BRICS association, trade representatives from all 5 members including Brazil and China agreed to start investment amongst members, update of trading ports, and promotion of free trade. China and Brazil individually made a cooperative deal that would focus on several economic sectors, including infrastructure development, financial services, and tourism. In 2017, $20 Billion US Dollars focused on infrastructure development in Brazil had been placed into action, to which China will pay 75% of the fund. Banks in China are focused mostly on energy infrastructure.

Investment:

In April 2018, Brazilian oil company Petrobras has received severals bids to sell a natural gas line to increase revenue. China's Silk Road Fund Company has been named as one of the bidders interested in the Company's Gas Line System, costing $21 billion US dollars. Brazil's Petrobras and CNPC have hosted talks to have the Chinese firm agree to financially back an upgrade of a Brazilian oil refinery in return to receive oil. China has already taken part in recent Brazilian oil related projects.

Economy:

In Late March of 2017, due to quality control issues of the Brazilian beef and poultry industry; China along with South Korea, the European Union, and Brazil's Latin American trading partner Chile halted or reduced meat imports from Brazil. The quality control issues consisted of contamination cases. A few days later, China reopened its market for Brazil to resume access to its ports after the meatpacking companies responsible were identified. China is considered Brazil's largest customer for meat products.