July 21, 2014
Post & Parcel, 7/21/2014
Chinese e-commerce giant Alibaba Group has signed a memorandum of understanding with Brazil Post designed to promote trade between China and Brazil.
The agreement was signed on Thursday in the presence of Brazil’s President, Dilma Rousseff, and the Chinese premier Xi Jinping.
Brazil Post said the partnership with Alibaba Group should allow Brazil’s retailers — particularly micro, small and medium-sized enterprises — with access to the Chinese market through Alibaba’s various retail platforms.
July 18, 2014
Anthony Boadle and Alonso Soto – Reuters, 7/17/2014
China and Brazil sealed their expanding commercial partnership on Thursday with a $5 billion credit line for Brazilian miner Vale and the purchase of 60 passenger jets from Brazilian planemaker Embraer.
In a raft of energy, finance and industry accords signed before presidents Xi Jinping and Dilma Rousseff, the two nations agreed to join forces to build railways to help Brazil cut its infrastructure deficit and feed China’s appetite for commodities.
Trade between China and Brazil soared to $83.3 billion last year from $3.2 billion in 2002, with iron ore, soy and oil making up the bulk of Brazilian exports, making China the South American nation’s biggest trade partner.
July 18, 2014
Paul Bischoff – South China Morning Post, 7/18/2014
Baidu announced today that it has officially launched its search engine in its biggest market yet outside of China, Brazil.
The Portuguese-language version of Baidu, dubbed ‘Baidu Busca’, currently covers web, images, and video searches. It has also incorporated a localised version of its Postbar (“Tieba” in Chinese) trending forum feature.
Baidu founder and CEO Robin Li was in Brasilia Thursday to announce the launch, which happened to coincide with Chinese President Xi Jinping’s meeting with Brazilian President Dilma Rousseff.
July 15, 2014
Shanghai Daily, 7/15/2014
During the World Cup, employees of the Brazil plant of Chinese car maker Chery were given time off for every match of the Brazilian team.
The games became a “happy-hour”; a time for Chinese and Brazilian employees to socialize together.
Chery has been operating in Brazil since 2009, a recent chapter in cooperation stretching back to the early 19th century, when Chinese tea growers took their skills to Brazil.
July 14, 2014
Paulo Trevisani and Rogerio Jelmayer – The Wall Street Journal, 7/13/2014
When China’s President Xi Jinping travels through Brazil this week, he will see airports and other projects financed mainly by the Brazilian government.
But, with Brazil’s economy slowing and government accounts strained, China is looking to play a larger role in funding critical infrastructure to help move South America’s largest country forward.
In Brazil for Monday’s start of a meeting of the so-called BRICS nations in Fortaleza, Chinese officials are expected to announce investments in Brazil’s transportation, energy and food sectors in coming days.
July 7, 2014
Suhasini Haidar – The Hindu, 7/7/2014
Within days of presenting his first budget, Prime Minister Narendra Modi and Finance Minister Arun Jaitley will head for their first big international visit for the BRICS summit in Brazil, with development and the BRICS bank at the top of the agenda.
Mr. Modi will be meeting more than 10 heads of state during the visit from July 13-16, including leaders of the BRICS countries: Russian President Putin, Chinese President Xi Jinping, South African President Jacob Zuma as well as host Brasilian President Dilma Rousseff in Fortaleza for the summit starting July 15.
Focus on meet with Putin, Xi
The BRICS summit will be followed by a trip to Brasilia, where President Rousseff has invited leaders of South America: Argentina, Bolivia, Ecuador, Paraguay, Uruguay, Venezuala and Surinam to meet with them as well. It is unclear how many bilateral meetings Mr. Modi will have, but the focus will be on his meetings with President Xi and President Putin. President Xi is also expected to visit India in September with a host of bilateral announcements and infrastructural deals on the cards.
June 24, 2014
Zack’s Equity Research, 6/23/2014
Moody’s Investors Services, a segment of Moody’s Corporation (MCO - Analyst Report), has played down the positive impact of the 2014 FIFA World Cup on Brazil’s economy. The credit rating agency believes the positive impact will be limited to certain sectors only. Interestingly, China – a non-participating country – has been benefiting more than the host country. Experts believe that China will earn significantly from the costliest FIFA World Cup tournament ever; that too without making massive investments.
It is China’s manufacturing sector that is expected to reap most of the benefits. The nation has been busy manufacturing the official match ball, World Cup memorabilia including the mascot Fuleco and official instrument Caxirola, and the hybrid bus (manufactured by China’s South Locomotive & Rolling Stock Corp Ltd). China has also produced electric multiple-unit trains that will be used to connect stadiums with other areas.
According to industry experts, China’s skilled workforce, and the efficient network of material suppliers and infrastructure has helped China become an important seller to the global markets.
February 14, 2014
Rick Gladstone – The New York Times, 1/12/2014
Despite Brazil’s sharp slowdown in economic growth, the country has no intention of emulating China’s low-wage model of competitiveness as a way to promote prosperity, former President Luiz Inácio Lula da Silva said Wednesday.
Mr. da Silva, one of Brazil’s most popular and powerful politicians, who presided over a remarkable expansion in the economy and a decline in poverty during his two terms in office that ended in 2011, also said the country sees its future in investing in education and promoting a technologically skilled work force.
He spoke in an interview with editors during a visit to The New York Times, where he defended the economic progress made under his administration and the policies of his successor, Dilma Rousseff, whom he mentored. Ms. Rousseff faces re-election in October, but lacks Mr. da Silva’s popularity.
November 4, 2013
Gwynn Guilford – The Atlantic, 11/04/2013
Brazil and China can’t seem to agree on what either country is getting out of their economic ties. Take this most recent example: China Construction Bank, a huge state-owned lender, just sunk around $716 million into a 72 percent stake in Brazil’s Banco Industrial e Comercial, a nearly 19 percent premium on BicBanco’s current share price. Some might argue that the move positions CCB to profit from Chinese investment in Brazil. But to hear the head of another Chinese bank tell it, that might be a naive move.
“The ardor for investment in Brazil is fading. Operating in Brazil is a huge challenge
,” Zhang Dongxiang, CEO of Bank of China’s Brazil unit, told Reuters. “Public opinion sometimes seems to be against foreign investment … as if it makes local industry less competitive.”
Zhang blames his wariness about investment in Brazil on the protectionist policies of the country’s president, Dilma Rousseff. In an effort to boost dwindling government coffers, Rousseff has enacted policies such as taxing foreign-made cars and limiting the land available for purchase by foreigners.
November 1, 2013
Brian Winter & Caroline Stauffer – Reuters, 11/01/2013
For Chinese investors, Brazil is no longer the promised land.
After making a big push into the South American giant in search of raw materials such as iron ore, as well as a promising market for their consumer goods, Chinese executives have grown frustrated with stagnant economic growth, heavy costs and what they see as a political and popular backlash against their presence.
As a result, Chinese investment is falling, and as much as two-thirds of the roughly $70 billion in projects announced since 2007 is either on hold or has been canceled, according to recent studies and interviews with Chinese and Brazilian officials.