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The Chinese are coming… or already arrived?

This Minister-Counselor Interview (second in command) of the Chinese Embassy in Brasilia, Song Yang,confirm what is already known: a China “found” to Latin America – and Brazil, in particular.

More than China?… And that Brazil?…

To China from 2018 it's far from the one I lived in the bygone years 90. the speech has changed: no longer that of a developing country facing its peers in the “Third World” (atrocious term…) and with commitments above all to developmentalism based on Marxist/socialist/”maoists”.

Although the official speech still retains some of this rhetoric, the reality of Xi Jinping’s PRC is totally different: trusting, committed, today's China pursues the paths of “New Silk Road” (“One Belt, One Road”) that will add to your dream of geoeconomic supremacy not only the Pacific, but also Eurasia. Who says this is Xi himself, that uses the “mantra” do “China Dream” in almost all his pronouncements.

And it advances throughout Latin America. And who says this is the “The Economist”:

Yours “onslaught” started with the obvious: the agricultural sector – after all there are more than 1,3 billion Chinese to be fed – and yours “derivatives” strategic (highways, ports, etc.), but now she turns to a “menu” much more sophisticated: the Chinese technology sector “found” our continent, and our market, in particular the Brazilian. Several of them pursue plans to invest in Latin America (Argentina and Chile took the lead in the search for investments/partnerships, having its presidents participated in the Summit on the “New Silk Road / One Belt, One Road”, that Xi Jinping organized in Beijing, in June of last year).

Or here they are already. Five among the biggest of them are urged in our country: Dahua and Huawei that manufacture home and business monitoring equipment; and ZTE, focused on the telecommunications sector; e a BYD, electric vehicle assembler, besides the “pioneers” JAC e Lenovo. By the way, who knew that the state “China State Grid Corporation of China” is the majority shareholder of CPFL (the Companhia Paulista de Força e Luz)?

The discourse of these companies in relation to Brazil is very similar. Executives highlight the potential of our market and minimize economic and political problems. have courage…or business vision and planning.

“Good bye, 25th of March “……

But, and us regarding the chinese???

I have noticed that several government and/or business missions have visited China; in increasing numbers, lately. But we are going to be sufficiently prepared to deal with a culture (business, inclusive) very different from ours, and with very own civilizational references and values, that escape our understanding (sim, they underlie any contact) ? We will know how to deal with the notion of “copy”, which is ingrained part -Confucian (?) – in chinese culture? We have enough executives (or performers) proficient in mandarin (essential even to understand what the Chinese say to each other in a negotiation…)?

I am very concerned that, unprepared to deal with the “new world”, that has already arrived, we don't know how to insert ourselves in it. The question that remains “in the back of our minds” (at least in mine) It's: we would be trading dependence on the Atlantic for dependence on the Pacific????

I suggest to friends to read, in integrity, the two subjects:

 

Absent from the USA, China advances in Latin America

Investments are welcome, but help from a country that doesn't care about democracy can be expensive

The Economist

04 February 2018 | 05h00

Trump was trying in Davos to persuade the global plutocracy that he did not intend to isolate the US, the chinese chancellor, Wang Yi, promoted globalization in Latin America, free trade and cooperation. for latin americans, the contrast was stark. Trump had insulted Mexico, El Salvador and Haiti, discouraged investments and talked about trade protectionism. A China, with the friendly words of Wang, offered a "reciprocal benefits and shared profits strategy".

China has not formally invited Latin America to join the One Belt initiative, One Road (“a belt, a road”), basis of President Xi Jinping's foreign policy that envisages investments in Eurasia and Africa. But he came close to that when he called the region a “natural extension” and an “indispensable participant” of the scheme.

Labels aside, China is already investing in infrastructure in Latin America. The meeting marked the maturing of a relationship. The annual volume of trade between China and Latin America went from almost nothing to more than US$ 200 billions in 2014. After a stoppage in the next two years, Latin American exports to China increased by 30% last year, according to the Inter-American Development Bank (BID), Benefited by Higher Oil Prices, of minerals and other commodities. China is already Chile's biggest trading partner, Peru and Brazil.

The biggest changes relate to Chinese investments and loans. Until recently, they focused on oil and mining in Venezuela. Now, arrived in Brazil and Argentina and cover other sectors. Chinese companies dumped US$ 21 billions in business in Brazil last year, including the purchase of plants, a distributor of electricity and ports.

China is financing a road to the Port of Buenaventura, on the Colombian Pacific coast, and modernizing a railroad in northwestern Argentina. “From the point of view of Latin America, the relationship is about money", says Oliver Stuenkel, professor of international relations at Fundação GetĂșlio Vargas, in Sao Paulo.

This happens especially with regard to Brazil, that is recovering from a deep recession. “Some fear that imports of Chinese products will deindustrialize the region and cause economic dependence. But no one thinks too much about the geopolitical implications of this relationship.”, believe Stuenkel.

There are considerable implications, and the Chinese are paying attention to them. “If Panama is the only country in the region that has joined the One Belt initiative, One Road, perhaps it's because China is aware that co-opting more countries could provoke a strong US reaction.”, afirma Margaret Myers, of the Inter-American Dialogue.

China takes advantage of the lack of interest from other powers. Trump does not have a clear strategy for the region, although Rex Tillerson, the secretary of state, be in Latin America on an official visit.

The European Union is still the largest source of foreign investment in the region, but the expected trade agreement between the EU and Mercosur so far runs up against the intention of France and other countries to protect their uncompetitive farmers. "The EU has not clearly established what it wants from Latin America", completes a new report from the Elcano Institute, from Madrid.

Getting closer to China brings benefits. in addition to money, Latin American governments appreciate Chinese position on global governance and climate change. But the region is getting involved with a country that doesn't care about democracy.

I know, for example, in a few years, Beijing has a military showdown in the South China Sea, some Latin American countries may feel obligated to support their new great partner. "China is still not playing the cards in Latin America", says Stuenkel. "But its influence increases day by day." Latin America, However, must pay attention to the conditions that accompany these shared profits./ TRANSLATION BY ROBERTO MUNIZ

Source: http://internacional.estadao.com.br/noticias/geral,with-absence-of-the-us-china-advances-in-latin-america,70002176914

Chinese diplomat urges Brazilian businessmen to conquer Asia

Eduardo MilitĂŁo Collaboration for UOL, in Brasilia 04/02/2018

https://noticias.uol.com.br/internacional/ultimas-noticias/2018/02/04/empresariado-brasileiro-precisa-deixar-comodismo-e-investir-na-asia-diz-ministro-da-china.htm

Fausto Godoy
Doctor of Public International Law in Paris. He entered the diplomatic career in 1976, served in Brussels embassies, Buenos Aires, New Delhi, Washington, Beijing, Tokyo, Islamabade (where he was Ambassador of Brazil, in 2004). He also completed transitional missions in Vietnam and Taiwan. Lived 15 years in Asia, where he guided his career, considering that the continent would be the most important of the century 21 - forecast that, now, sees closer and closer to reality.