With a bilateral strategic move, China has declare that they will invest more than $50 billion in different infrastructure projects in Brazil. These deals to be signed during the visit of Chinese Prime Minister Li Keqiang in next week. Brazil is one of the prime exporters in China. These deals will be done through the banks of these two countries.
China’s Investment in Brazil | Investment in Brazil’s Railway Sector
China has been the biggest investor in Brazil’s infrastructure sector. This time China is coming up with a mammoth railway project in South America. specially covering Brazil and Peru. This railway link will be built from the Brazil’s Atlantic coast to the Peru’s pacific coast. After completion of this railway project China can import more goods and minerals from Brazil in reduced cost.
China’s Investment in Brazil | Steel and Heavy Metal Sector
Brazil exports its maximum iron ore to China currently. China will fund in a joint venture project of Brazil and China ti produce high quality steel in reduced price. Apart from these, China and Brazil are heading up towards a bilateral understanding in heavy metal sector also.
China’s Investment in Brazil | Other Sectors
China is going to invest in other sectors also. These include acell phone parts, automobile parts, energy, hydroelectric power stations etc.
Why China- Brazil Collaboration is a New Beginning
China has been on the top of “Fastest growing economy” in the world. Brazil is also the fourth on the same list. So the understandings and investments between these two upcoming economic powers may produce a bunch of significant business activity in Pacific region.
China- Brazil Collaboration| Countering USA
Another importance of this investment is totally power showing and political. China has been trying to build a friendly relations with the Latin American countries to build a belt of China belt around USA. Though neither USA nor China made any comment on this occasion. Here the Asian communist country and World’s fastest growing economy is applying the same policy which USA used before and made an economic belt around China by including Japan, Taiwan and South Korea.
Now time to see, how the mighty USA counters this bilateral economic collaboration in Latin America. Because China is slowly heading towards the one of the biggest oil reserve in world- Venezuela that is also a neighbor country of Brazil. And USA will not let the dragons get that easily.