China creates favorable environment for economic recovery in Brazil, says business leader

Updated: October 9, 2020 Source: Xinhua News Agency
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China is creating a favorable environment for the recovery of Brazil's economy in the aftermath of the COVID-19 pandemic, which could turn 2021 into a promising year for bilateral relations, a top business leader said on Tuesday.

"China's control of the pandemic created a very favorable environment for the bilateral relationship, and mainly paved the way for our trade ties to strengthen and created an environment of great harmony for them to flow positively," vice president of the Sao Paulo state Federation of Trade Associations, Farid Murad, told Xinhua.

The business leader in Sao Paulo, the so-called "economic capital" of Brazil, pointed out that, China, as Brazil's main trading partner since 2009, will be key to the Brazilian economy in 2021, especially as Brazil's recovery will go hand in hand with agribusiness exports.

Agribusiness and exports are "engines" of the country's economy, of which agribusiness continues to supply to China during the pandemic, he said.

"The sector that recovered the fastest was agribusiness, in which Brazil is today one of the world's largest players, and China continues to be our largest trading partner," said Murad.

"If we analyze agribusiness, taking into account only the states of Sao Paulo (southeast), Mato Grosso (west) and Mato Grosso do Sul (southwest), there was a large increase in business with China," he said.

In September, Brazil registered the highest trade surplus for the month on record, amounting to 6.164 billion U.S. dollars, with Brazilian exports to China up by 13.7 percent year-on-year, according to data from the Economy Ministry.

In contrast, Brazilian exports to Europe decreased by 34.5 percent in the same period, those to North America down by 20.6 percent, and to South America, 7 percent.

China has promoted a new development model, called dual circulation, in which domestic consumption is the mainstay of economic activity, while allowing the external and internal markets to boost each other.

This formula, according to analysts, is seen as viable for China to develop resilience against external shocks and to share its opportunities for development with other countries.

"Either way, I am quite hopeful that 2021 will be very promising," Murad said, highlighting the exports of agricultural and mineral products to the Asian country.

"Exports of agricultural and mineral products from Brazil to China obviously bring excellent opportunities for the Brazilian market, mainly due to agribusiness, the engine of this successful exchange between the two countries," he said. 

Editor: Liu Ting