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Energy, bioeconomics and urbanization should expand Brazil-China partnership in coming years

11/11/2019 | 18h37
Energy, bioeconomics and urbanization should expand Brazil-China partnership in coming years
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On the eve of the BRICS summit (which brings together Brazil, Russia, India, China and South Africa), with the presence of all countries next week in Brasilia, academics and specialists in Brazil-China relations and businessmen from both countries showed up. optimistic about expanding bilateral relations and expanding bilateral business. Infrastructure, pre-salt and bioeconomics are the main focuses of China in the country. On the other hand, the growing urbanization of China has changed consumption habits, especially in food, creating opportunities for Brazilian agribusiness exports.


These are some of the conclusions of three panel discussions promoted by CEBRI (Brazilian Center for International Relations), during the international seminar "Brazil-China Partnership: Trends and Opportunities", sponsored by Vale and in partnership with the Academic Center for China Economic Practice. Tsinghua University and Thought (ACCEPT) and the Brazil-China Business Council (CEBC) at the Museum of Tomorrow, Rio de Janeiro last Wednesday (07.11).


"CEBRI has been paying particular attention to China, the trade relationship between countries, and the opportunities to advance in these partnerships, particularly through China's innovation and sustainability policies," said Anna Jaguaribe, Member of the Board of Trustees of China. Brazilian Center for International Relations (CEBRI) and Director of the Brazil-China Institute of Studies (IBRACH). The event is part of the parallel programming of the XI BRICS Summit.


The event addressed key trends in the ongoing transformations in China, particularly in the face of increasing urbanization, the rise of consumption and demographic transition. For Chinese representatives, Chen TaoTao, Director of Tsinghua University Latin America Center (business environment, capabilities of new Chinese multinationals), and Pepe Zhang, Associate Director of the Atlantic Council, the significant changes the country has been experiencing. urbanization, from the interior to the coast, from the opportunities arising from the arrival of major investments in port logistics in the last 40 years. This is the opposite of Latin America, which was colonized from the coast and expanded inland. According to them, there is a need for infrastructure to meet this migration, there is intense job creation, especially in the production of technology, and consequently there are changes in consumption behavior in products, such as food, that are no longer cultivated in the countryside. and are now imported.


For former Brazilian ambassador to China, Marcos Caramuru, and CEBRI Counselor, while there is a huge competition for foreigners who want to do business in China, due to the verticalization of economy, quality and innovation developed in the local market, There is an avenue of opportunity, as in China's GDP growth, the share of consumption is around 70 percent, and investment by 30 percent. "Consumption is growing and this consumption is led by the urban youth, who unlike their parents and grandparents, is willing to go into debt," he said, noting that the current urbanization is today around 60% while that of Latin America is by 80%.


Attending the seminar promoted by CEBRI to discuss trends and challenges, BRF and Suzano are two companies that are operating strongly in the Chinese market, one focused on food exports and the other on pulp and paper exports. In common between them is the previously built ability to meet the demands of the Chinese consumer, such as traceability technology, strict environmental rules regarding production at source and intense control and the entire production process. "China has focused its efforts on very disciplined environmental public policies, which have already had positive effects on water, soil, air, and demand the same efforts as its suppliers," said Suzano's Director of Institutional Relations, Pablo Machado.


The event also addressed the convergences and possibilities of working together in innovation, connectivity and digitization ecosystems, with the participation of Paulo Dallari, Director of Institutional Relations at 99, in Brazil, a company acquired by Chinese Didi Chuxing, and Brazilian experts in the field. financing of these new technologies. For BNDES Superintendent of Operations and Digital Channels, Marcelo Porteiro, technology has disruptive power to change the performance of small businesses. "This is sometimes hampered by the lack of bankable mechanisms, and this is where the Bank intends to act, enabling the development of these small businesses, either through incentives for startups or other means."


Adriano Proença, Professor at the Federal University of Rio de Janeiro (UFRJ) and Member of the Scientific Council of the Brazil-China Institute of Studies (IBRACH), one of the leading experts in the study of "synocentry", the strong movement that brought Chinese investments to Brazil. , the synergy between the two countries can bring to Brazil the long term experience. The planning cycles are very long-term and this may be the Chinese differential that can serve as a reference for Brazil towards sustainable development. Celina Bottino, Project Director of the Institute of Technology and Society (ITS-Rio), stressed that in addition to long-term planning, there is a concern with social inclusion in all development strategies and infrastructure investments.


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