Brazil and China: a Strategic Partnership

The Chinese Constitution is quite interesting. Its 42nd article attracts attention by affirming that "Citizens of the People's Republic of China have the right as well as the duty to work." This constitutional principle reflects the famous popular saying that affirms that success only comes before work in the dictionary. Work is, therefore, a truly defining value of the Chinese society.

This impressive country, comprised of a hard-working people and an elite truly committed to country, managed to produce an economic revolution, lifting more than 700 million people out of absolute poverty and turning their economy into the second largest one in the world, in a period of a little more than three decades. In addition, its achievement has proven that poverty is not a fatality, but a reality that can be overturned quickly, if there is a will.

 China is fascinating for what it has conquered and built. Currently, the country is transitioning from global factory to the largest global market place in the history of the world. Many, however, are worried for what the country of Peace and Harmony will do in the future as the world leader. This is due to its fast rise as a global power, in addition to a major shift of the global power axis from the Atlantic to the Pacific, and the building up of a new and distinct reality in the global chessboard. But it is a fact that the economic superiority of the West was nothing more than an accident in the course in the human history. The fear of the unknown - not justifiable, if we read the history books - is what has worried many governments.

Upon taking over the presidency of Brazil, the president-elect Jair Bolsonaro will be expected to have a clear understanding of the role Brazil must play in this new global scenario. Whether he likes it or not, reality will impose itself. It will be up to him to redesign the Foreign and Economic Policies to meet the enormous expectations there is regarding Brazil.

In this scenario, China - a BRICS partner - plays an essential role for Brazil. Differently from the relationship with the European Union and the United States of America, where gains - if they occur - will only be marginal for the country, the advantages of the bilateral Sino-Brazilian relationship may represent a mutual substantial economic increase. With 1.3 billion people and growing purchasing power, China has already proven its enormous interest in Brazil, either as its largest trading partner since 2009 or as its largest investor since April 2017.

Here and there, Sinophobia is emerging, without considering the enormous gains that the bilateral relationship has generated. China is not guilty for the process of de-industrialisation that has taken place in Brazil and other countries in the world, but rather their lack of ability to implement policies of effective competitiveness to allow them to compete more efficiently. China is a competitive country and has taken full advantage of the benefits of globalisation. 

Trying to oppose China does not seem to be the right strategy. Even the United States, with its current "commercial war", is not going to risk fracturing their relationship, particularly considering that China is its biggest creditor. It is also important to stress that China is not buying Brazil. What Brazil currently offers is also part of the menu of several countries in the world. Every week, government leaders from around the world are in Beijing offering access to their markets, commodities and agricultural products. Brazil is not the only one with advantages in these fields.

What Brazil needs to do - and should look for - is ways of working together with the Asian giant to add effective value to its products and ensure greater access to the Chinese billionaire market. In this sense, highly competitive and attractive policies are necessary to increase the number of Chinese companies settling in the country and seek to add value to Brazilian commodities destined not only to that market but to the global market. Thus, instead of exporting fruit only, for example, the Chinese companies to be installed in Brazil should manufacture and add value to commodities locally before exporting such goods to China and other markets. These products would have greater added value. With this strategy, the Chinese companies win, Brazil wins and the possibility of improving the use and absorption of the Brazilian workforce increases.

Also, whoever mistakenly affirms that the Chinese goal is to "steal jobs" in the countries where they operate is wrong. As a matter of corporate social responsibility, Chinese companies operating internationally understand that their existence depends on the positive popular perception in the countries where they operate. Stealing jobs does not improve reputation. 

Brazil and China have a lot of synergy. The Belt & Road Initiative can help a lot in this synergy. China is interested in a strong partner in the Americas in its strategy of global rise. Brazil is interested in making a qualitative leap in its competitiveness and productivity. China has the economic and technological resources Brazil needs, in addition to its vast market. Struggling with this new reality based on the mermaid chant of other markets who promise, but will not deliver, does not seem to be the most rational idea for the new government. Brazil must rethink its future. China and Brazil should embrace each other in building this new global order as equal partners. They must work to achieve so. And work is a constitutional duty, according to the Chinese.