Lula in China: Brazil strengthens its economic foothold in the East.

Brazilian President Lula’s visit to Beijing is a strong sign of the strategic rapprochement between Brazil’s leading trading partner and the world’s second largest economy. The backdrop is a growing economic partnership, particularly since the outbreak of the Sino-American trade war.

70% of soybeans imported by China now come from Brazil, a record that illustrates the progressive disengagement from the United States in agricultural trade. Brazil is taking full advantage of this reconfiguration, boosted by the tariff tensions imposed by Donald Trump in recent weeks.

But the Lula-Xi Jinping meeting goes beyond soybeans. Beijing could finance massive infrastructure projects, such as the rail line linking the Atlantic to the Pacific through Brazil and Peru. This project is emblematic of the Latin American version of the “New Silk Roads”.

China is thus extending its influence in the region, at a time when the United States is seeking to contain its growing power. Faced with this, Lula adopts a balancing act, refusing to choose sides: “We don’t want to be caught between Beijing and Washington”, he declared.

With the rise of the BRICS and the shift in trade towards Asia, Latin America is redrawing its economic alliances, with Brazil leading the way.

source: Reuters