Xi Jinping's visit to Brazil raises 'high expectations' for agribusiness, aviation deals
Xi Jinping will meet his Brazilian counterpart in Rio de Janeiro in November, Brazil's vice-president told the Post, a summit poised to yield agreements that could bring the countries closer economically.
Geraldo Alckmin said the two sides were preparing a robust agenda and planned to sign several agreements during Xi's stay in Rio, which will host the G20 summit.
The visit will take place nearly a year and a half after the Chinese leader met with Brazilian President Luiz Inacio Lula da Silva. The trip to Beijing in April last year produced more than 20 agreements valued at an estimated US$10 billion.
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The wide range of deals that the leaders are expected to sign underscores how far the countries have come since the administration of Lula's predecessor, Jair Bolsonaro, which was characterised by stable trade relations but geopolitical distance.
Chinese President Xi Jinping (left) and Brazilian President Luiz Inacio Lula da Silva attend a welcoming ceremony at the Great Hall of the People in Beijing on April 14, 2023. Photo: Reuters alt=Chinese President Xi Jinping (left) and Brazilian President Luiz Inacio Lula da Silva attend a welcoming ceremony at the Great Hall of the People in Beijing on April 14, 2023. Photo: Reuters>
The discussions would focus on "expanding trade and investment flows, exploring new areas of technological and scientific cooperation and the infrastructure sector", Alckmin said.
Brazil also seeks to advance strategies for social and rural development and hopes to make "relevant announcements about new projects and investments and open the Chinese market to new Brazilian products, including agribusiness and civil aviation".
Officials connected to the vice-president later advised the Post that Brazil could announce the sale of Embraer airplanes to China during the visit, but noted negotiations were still ongoing.
A source familiar with the matter told the Post that, as part of the agribusiness announcements, the two countries are expected to set forth the opening of the Chinese market to Brazilian grapes.
The request has been long-standing on the Brazilian side but complicated by international trade dynamics. The source said the opening of the market for fruit is usually reciprocal. This means that if China were to open its market to Brazilian grapes, it would likely ask Brazil to import some mainland fruit as well.
However, Brazilian producers have so far resisted the Chinese demands, fearing they would lose market share domestically. It was not immediately clear what terms had changed or been negotiated to finalise the deal in November.
An art display depicting China's Belt and Road Initiative at the China National Convention Centre in Beijing on October 18, 2023. The BRI is China's flagship infrastructure and trade strategy. Photo: AP alt=An art display depicting China's Belt and Road Initiative at the China National Convention Centre in Beijing on October 18, 2023. The BRI is China's flagship infrastructure and trade strategy. Photo: AP>
"We have high expectations for President Xi's visit to Brazil at the end of the year," Alckmin said. "It will be an excellent opportunity to deepen these discussions and implement concrete initiatives that can bring significant benefits to both countries."
The Chinese embassy in Brasilia was still awaiting official confirmation of the visit before providing details of Xi's possible agenda in Brazil, the mission said through a spokesperson.
The spokesperson declined to detail the nature of the agreements under discussion, stating only that "both Brazil and China attach great importance to their bilateral cooperation and both parties are in constant dialogue to discuss new opportunities".
"At the last Cosban plenary meeting, important agreements were already reached and new foundations laid for future results," the spokesperson said, referring to the two countries' high-level dialogue mechanism.
Separate from trade agreements, expectations run high for Brazil's accession to the Belt and Road Initiative (BRI), China's flagship infrastructure and trade strategy.
Two Brazilian government sources told the Post that diplomatic contacts on the matter had been made, but emphasised that "talks are in the early stages".
Brasilia would be "open to the idea" of becoming a BRI member and such a move could be announced as part of the celebrations of its 50 years of relations with China, these sources said.
Now the Brazilian government is examining how to combine BRI investment opportunities with the 'new growth acceleration programme', one of Lula's key election pledges to improve the country's infrastructure.
A few days before the G20 summit, Lula is scheduled to meet Xi in Peru during the Asia-Pacific Economic Cooperation (Apec) leaders' meeting. There, Brazil will push ahead with talks on connecting the BRI-financed Chancay port.
During Alckmin's visit to Beijing, sources said, the Chinese side raised the possibility of investing in infrastructure to facilitate the flow of exports through the port.
These same sources said Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB), voiced interest in "helping Brazil connect to the Pacific".
Alckmin did not comment on Brazil joining the BRI, a move that would bring together the world's second and eighth-largest economies.
When asked about the matter, the Chinese embassy quoted a statement from foreign ministry spokeswoman Mao Ning, who on Wednesday said China was "ready to take the 50th anniversary of diplomatic relations as an opportunity to work for greater synergy between the Belt and Road Initiative and Brazil's development strategies".
"Brazil is the kingdom of football," said Mao. "China welcomes Brazil to join the Belt and Road family as soon as possible and looks forward to Brazil scoring a spectacular goal in Belt and Road cooperation."
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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