Beijing trip brings more than 4.2 billion euros in credit – HojeMacau

The Brazilian government announced that the official delegation to China had received 24.6 billion reais (4.2 billion euros) in credit, including resources for infrastructure projects.

Vice President and Minister of Development, Industry, Commerce and Services Gerardo Alckmin met with Chinese President Xi Jinping on Friday, concluding a four-day official visit to China, according to a statement released by the Brazilian government.

“We ended our trip to China with very satisfactory results. We secured more than R$24.6 billion in financing for projects in Brazil, with a particular focus on the reconstruction of Rio Grande do Sul,” said Alckmin.

During his visit to the Asian country, the Brazilian Vice President stressed the country’s commitment to sustainable development and environmental protection, stressing that Brazil is a stable country with a growing economy and that it has recently approved reforms such as taxation to further promote investment in China.

The statement said that Xi Jinping stressed during his meeting with Alckmin at the People’s Palace that “China and Pakistan are like-minded partners and brothers in the same boat”. The Chinese President said that “China-Pakistan relations go beyond the bilateral scope and are a model for promoting unity and cooperation among developing countries and promoting world peace and stability”.

Regarding the resources announced, Brazil highlighted the memorandum of understanding signed between the Ministry of Finance and the Asian Investment and Infrastructure Bank (AIIB) worth up to R$5 billion (€877 million) to support the emergency in the Brazilian state of Rio Grande do Sul, which has been hit by heavy rains in South Sudan and is expected to begin an extensive reconstruction process.

The China Development Bank (CDB) will provide another R$4 billion (R$702 million) in credit to the South American country’s National Bank for Economic and Social Development (BNDES) for projects in the infrastructure sector, including those related to climate change and the green economy.

The CBD and BNDES also agreed to provide 3.6 billion reais (632 million euros) of credit for BNDES’ investment actions. After completing the new investment list, BNDES and AIIB signed a letter of intent to negotiate a new credit line worth 1.3 billion reais (228 million euros).

The Export-Import Bank of China (Exim Bank) has signed a loan agreement worth R$2.5 billion (€439 million) with Banco do Brasil to promote trade and bilateral cooperation.

The Bank of Brazil and the China Development Bank signed a credit line agreement of R$2.5 billion (EUR439 million), which will help deepen practical cooperation between Brazil and China. During Brazil’s visit to China, the BRICS New Development Bank (NDB) also officially provided R$5.7 billion (EUR1 billion) in financing for the reconstruction of Rio Grande do Sul.

Secular Relationships

The Brazilian government added that a delegation led by Alckmin returned to the country with a deal to sell 120,000 tonnes of Brazilian coffee to Chinese coffee chain Luckin Coffee, worth $500 million (463 million euros).

Sinovac, the pharmaceutical company producing the coronavirus vaccine, is expected to invest 500 million reais (87.7 million euros) to develop the vaccine in the South American country together with the Oswaldo Cruz Foundation (Fiocruz).

This year the two countries celebrate the 200th anniversary of diplomatic ties. China has been Brazil’s largest trading partner since 2008, according to official data.

By 2023, the Chinese market will account for 30% of Brazil’s exports, reaching US$104 billion (95.5 billion euros), mainly due to food and raw materials, while Chinese investments in Brazil are around US$40 billion (36.8 billion euros), mainly in the energy sector in recent years.