Lula calls Xi Jinping and talks about expanding trade
Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping reinforced their willingness to identify new business opportunities between the two countries. Amid the US’s new move to raise tariffs against trade partners, Lula phoned the Chinese leader on Monday evening (Aug. 11), when they talked for about an hour.
According to Chinese news agency Xinhua, President Xi Jinping said that the Asian country wants to set an example of “unity and self-reliance” among the major countries of the Global South and “jointly build a more just world and a more sustainable planet.” The Chinese leader urged “all countries to unite and resolutely [fight] against unilateralism and protectionism.”
The White House tariffs seek to reverse the relative loss of competitiveness of the US economy to China in recent decades. The presidents agreed on the role of the G20 and the BRICS in defending multilateralism and building consensus in the Global South.
“Xi also said that China backs the Brazilian people in defending their national sovereignty and supports Brazil in safeguarding its legitimate rights and interests […]. Xi called on Global South countries to jointly safeguard international fairness and justice, defend the basic norms governing international relations, and protect the legitimate rights and interests of developing countries,” Xinhua reported.
China is Brazil’s largest trading partner. The two nations have a global strategic partnership – a higher level of diplomatic relations.
“In this connection, they welcomed the progress already achieved in the synergies between the national development programs of the two countries and pledged to expand the scope of cooperation to sectors such as health care, oil and gas, digital economy, and satellites,” a note from the Brazilian president’s office reads.
In April, US President Donald Trump started the trade war by imposing tariff barriers on countries according to the magnitude of the deficit the US has with each nation. As the US has a surplus with Brazil, the lowest rate was imposed – 10 percent.
However, at the beginning of July, President Trump raised the tariff to 50 percent in retaliation for decisions he said would harm US big techs, and in response to the trial of former Brazilian President Jair Bolsonaro, accused of leading an attempted coup d’état after losing the 2022 election. The new tariffs came into force on August 6 and affect 35 percent of goods sent to the US market – a total of four percent of Brazilian exports.
During the conversation, the leaders also exchanged views on the current international situation and the recent peace efforts between Russia and Ukraine in a war that has lasted more than three years.
President Lula also stressed the importance of the Chinese participation in the 30th United Nations Climate Change Conference (COP30), which will take place in Belém, Pará state, in November this year.
“President Xi pointed out that China will be represented in Belém by a high-level delegation and that it will work with Brazil for the success of the conference,” the Brazilian note says.
