China signs deal to boost imports from Brazil

China signed a cooperation deal to increase the import of Brazilian goods today (Nov. 29). The agreement was signed by China Council for the Promotion of International Trade (CCPIT) and the Business Leaders Group (LIDE) during a Brazil-China seminar, which brought together 400 investors from both countries in São Paulo.

According to CCPIT vice-President Chen Zhou, China wants to discover new commercial possibilities with Brazilian in addition to the main products currently traded, like soy, oil, and ores. “Brazilian goods are welcome, we want to explore all new areas for cooperation in trade.”

The pact is expected to include partnership in the production chain, aimed at cutting logistics costs which today represent a major obstacle to Brazil's industrial development and agribusiness. Another measure is the expansion of seminars, facilitating the exchange of experiences between entrepreneurs in both countries.

Chinese potential

Over the last four months, Zhou remarked, China's growth added up to 7%, expected to remain steady in the upcoming years. Today, China has 200 Brazil-based companies investing in the Latin American country. “In Brazil there are a number of sectors we can work on together, with strategic partnership between the two countries.”

China's General-Council for Brazil Chen Peije estimates that the country's investment in Brazil totaled $63.5 billion in the first three quarters this year—up 28.4% compared to the same period last year.

São Paulo Finance Secretary Hélcio Tokeshi said that the goal is to give preference to finished products and keep primary goods to a minimum in Brazil's exports to China. “We want inter-industrial trade. This is our path for the next few years, building more solid ties between the two nations.”

Translated by Fabrício Ferreira