Brazil Signed More Cooperation Ties with China to Expand Commercial Partnership
To further seal the expanding commercial partnership of China with Brazil both countries signed a US% 5 billion credit line for the Brazilian miner Vale and the purchase of around 60 passenger aircraft from Embraer, a Brazilian planemaker. Chinese president XI jinping and Dilma Rousseff signed a raft of finance, energy and industry accords in which both agreed that the tw nations need to join forces to build railways to help Brazil lessen its infrastructure deficit and for China to meet their demands for commodities.
The trade between the two countries is now at US$ 83 billion as of last year compared to US$ 3.2 billion in 2002 as soy, iron ore and oil made up the bulk of Brazilian exports and made China Brazil’s biggest trade partner. China’s Eximbank gav ea US$ 5 billion credit line to Vale to allow them to purchase equipment and ships from Chinese companies, but carried no mention of a solution to impasse China’s refusal to allow big bulk iron ore carriers that were used by Vale to dock into Chinese ports. Furthermore a sign of a deeper financial tie between the two BRICS members showed that China Construction Bank has formalized its 72 percent acquisition of the Braziliam mid size lender Banco Industiral 3 Comercial in a deal that was made last October.
President Xi was able to visit Brazil after the BRICS Summit and created a new US$100 billion development bank that is based in Shanghai which will fund infrastructure projects and provide developing nations with an alternative source of funds for Western dominated multilateral financial institutions.
Embraer is set to sell around 40 aircrafts to Tianjin Airlines their biggest client in China, in which half of the aircrafts will be the re-engineered model E-190E2. These orders for their aircraft filled the key gap to the aircraft maker’s order in booking as they develop a next generation replacement for 2018.