US-China tension and commodity supply favor demands from Brazil with Chinese

Published 2023년 3월 17일

Tridge summary

President Luiz Inacio Lula da Silva is planning a visit to China from March 26 to 31, aiming to strengthen Brazil's trade relations with China amid increasing global tensions. This visit, scheduled for a year when Brazil is expected to have a record harvest of soybeans and corn, could mark a significant improvement in Brazil's trade status for China. The trip is anticipated to result in the resumption of beef exports and business meetings with Chinese companies investing in Brazil. Additionally, Brazil seeks to consolidate its role as a stable and reliable supplier of commodities to China and protect its regional leadership through Mercosur.

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Original content

By Roberto Samora and Bernardo Caram SAO PAULO/BRASILIA (Reuters) - President Luiz Inacio Lula da Silva's trip to China, between March 26 and 31, will encounter a global geopolitical situation favorable to closer trade relations with Brazil, amid tensions between the Chinese and Americans being accentuated by Beijing's rapprochement with Russia. If the situation recalls how Brazilian exports benefited from the China-US trade war in the past, it also coincides with a year of record harvest of Brazilian soybeans, the main product in the national export basket that can supply the Chinese — the world's largest importers — with certain off, if there is any more serious feud between them and Americans. “In soybeans, there is an expectation of record production of 150 million tons… due to the increase in quantity, this should prevent prices from rising”, said the president of the Brazilian Foreign Trade Association (AEB), José Augusto de Castro. The expectation of a large Brazilian corn ...

Source: Mixvale