China and Brazil are strengthening their role on the international scene

Economic agreements, investments, the use of Chinese currency in commercial transactions, but also the search for a solution for peace in Ukraine, are the issues that fill the agenda of the Brazilian president during his state visit to China.

But first of all the visit it symbolizes the restoration of relations between the two countries that they were very close friends until the arrival of the populist and anti-communist Jair Bolsonaro as president of Brazil. Lula da Silva’s trip, which was preceded by other important visits to the United States and Argentina, signals that Brazil is once again an active player in international relations and occupying its space.

Lula made it clear when he landed in China and made sure of it Brazil is “back” and pointed out that the return is happening “after an inexplicable absence”, referring to Bolsonaro’s isolationist governance. For President Xi Jinping, the visit is important because Brazil is the leading economic power in Latin America, a continent where it is working to increase its influence to the detriment of the United States.

We cannot forget that Brazil is one of the BRICS countries, along with Russia, China, India and South Africa. They are a group of emerging economies that drove world growth at the end of the Cold War. For Beijing, they are an important part that requires a multipolar world that does not depend on Washington.

Proof of the importance of this union is that Lula began his visit on Thursday from Shanghai, where he attended the inauguration of his ally, former president Dilma Rousseff, as director of the New Development Bank (NBD, for the acronym in English) of BRICS, created in 2014. In Shanghai, he held meetings and visited several companies such as the largest Chinese car manufacturer BYD or the Huawei technology research center.

On Friday, already in Beijing, Lula is meeting with Xi Jinping and two other high-ranking representatives of the Asian giant: Prime Minister Li Qiang and Chairman of the National People’s Assembly Zhao Leji. Both leaders are expected to talk about the peace initiative for Ukraine and the need to find a way out of the conflict. The two countries presented themselves as mediators, although China did not condemn Russia for invading Ukraine, and Brazil showed its rejection, but also did not approve sanctions against Moscow. Last week, Lula sent his top foreign policy adviser to the Russian capital. The Brazilian president in his term of office in 2007-2010. was already a mediator in the nuclear agreements between Iran and the US.

commercial connections

Brazil and China intend to deepen economic ties. Beijing is already the main trading partner of the Latin American country, and it receives the largest share of Chinese investments directed to that continent. Most of Brazil’s exports (soy, beef, iron) are destined for China. The Chinese press emphasizes the agreement reached, which makes it possible use of own currencies in trade between the two countries, without the need to pass the US dollar. China is trying to position its yuan currency as a convertible currency in competition with the dollar, but has reached bilateral agreements with only a few countries where it directs a lot of investment.

After visits by European leaders — Borrell delayed his trip for health reasons — China is hosting other world leaders. Courting the countries of the Global South and visits by the leaders of other Asian countries, such as Malaysia or Singapore, show Xi’s interest in positioning himself as a global statesman.