12:45, June 04, 2014

From May 19 to May 25 2014, Rio Grande do Sul of Brazil held a “Chinese Week” to promote bilateral economic cooperation, technical innovation, and cultural exchange. The Brazil side undoubtedly directed most of its attention to economic cooperation. In addition to cultural organizations, Chinese participants in the “Chinese Week” also included Huawei, Baidu, LeTV and other Chinese enterprises.

Since last year, most of the regions in Brazil have shown strong momentum in attracting Chinese investment, covering infrastructure, automobile and accessory parts, household appliances, mechanical equipment, oil and gas, renewable energy sources, environmental protection and other fields. The cumulative total of China’s investment in Brazil now exceeds 20 billion USD. Most investing Chinese enterprises are large-scale, some even among the fortune Global 500. China and Brazil have harvested fruitful results in infrastructure, resources and financial cooperation.

Tarso Genro, former Minister of Justice and the governor of Rio Grande do Sul of Brazil, explained that economic and political cooperation between China and Brazil had great strategic importance. To develop the relationship with China would substantially benefit Braz, and even wider Latin America.

Since last year, with increasing difficulties on both internal and external fronts, the BRICS countries have suffered a slowdown in economic growth. After over a decade of rapid development, these countries were experiencing a delayed reaction to the 2008 international financial crisis. The ‘bear’ began to show its teeth in international opinion on the BRICS.

To maintain growth momentum and become the growth engine of the world economy, the BRICS countries should enhance joint cooperation and press forward with economic restructuring through cooperation. According to statistics released by Chinese Customs, from January to April 2014 trade between China and Brazil increased rapidly, amounting to 25.9 billion USD, a year on year growth of 10.9 percent. Li Jinzhang, Chinese Ambassador to Brazil, pointed out in a recent speech that the natural resources, industrial structures, and development paths of BRICS countries are highly diversified and complementary, so these countries have a good basis for cooperation. Currently, the total foreign trade volume of the BRICS countries makes up 16 percent of the world total, while the trade volume between these countries is only 336 billion USD, making up 1.5 percent of the world total, which suggests that the potential for economic cooperation among the BRICS countries has not yet been fully released.

To improve trade and economic cooperation, the BRICS countries should further increase two-way investment. China’s investment in its BRICS partners has expanded to infrastructure, manufacturing and other fields. As an important force in boosting employment, Chinese investment plays an active role in cooperation among BRICS countries and in economic growth throughout Latin America.

The article is edited and translated from《金砖国家内部合作大有可为》, source: People’s Daily, author: Ding Gang, Wang Xiaolin and Yan Huan.