By: Jonas Souza, Key Account Manager, ET2C Brazil
The economic supremacy of the West is a relatively recent phenomenon. When Marco Polo visited China in the late thirteenth century, he was visiting the richest nation in the world. China owned the most productive agricultural system of its time, its industries were creating the most advanced technological products, while the vast market of the nation generated an unprecedented degree of economic activity. According to Greg Clydesdale (“How business changed the world”), China was the world leader in terms of technology and quality of life in the pre-industrial era. The West has dominated the global economy for two and a half centuries, which represents very little time if the whole history of economic activity is taken into consideration.
Today, China is the most important trade partner for Brazil and it has been in that position since 2009, followed by the US. China is one of the key sources of foreign direct investment (FDI) in Brazil, leading with investments in energy, mining, steel and agribusiness sectors, followed by telecommunications, automobiles, machinery, banking and infrastructure development. However, it also needs to be said that there are also significant Brazilian investments in China, primarily in aeronautics, agribusiness, motor & auto parts, steel, pulp and paper, and banking services.
During the Brazil – China Business Summit in June this year, Chinese Ambassador to Brazil, Mr. Li Jinzhang said that the close bilateral partnership resulted in creation of the cooperation fund for classification of project development in Brazil – a common interest for both countries which should serve as positive reference for other Latin American countries in their bilateral relations with China. This shows not only China’s ambition to deepen trade partnerships with other Latin American countries, but also an opportunity for Brazil to strengthen its regional business leadership.
The decision of a company to import or export goods and services begins with an idea, will or need for business expansion, followed by the development of an international business development plan. Both countries have set their eyes on business expansion in overseas markets and their close cooperation will result in even more business opportunities for companies in both countries – they just need to figure out how to use them.