Chinese Prime Minister Li Keqiang revealed on Tuesday that China is set to engage in a multibillion worth of trade and investment deals with Brazil. China wants to increase its economic presence within the region.
According to South China Morning Post, part of Li's official Latin America trip is meeting with Brazilian President Dilma Rousseff to discuss investment plans that would give Brazil a much-needed economic boost. The boost is expected to address the country's half-a-decade struggle with rising inflation and lagging economic growth.
Li and Rousseff, as WSJ World reported, is set to tackle plans, such as building giant railways, corporate acquisitions and billion dollar investments in infrastructure upgrades. In particular, the South China Morning Post noted that China aims to bring in some $50 billion worth of infrastructure investments to help Brazil prepare for the upcoming Rio Olympics.
In addition, Li's itinerary in Brazil includes a quick visit to Rio to check on some of China's existing investment in the city. China, as Channel News Asia reported, plans to invest $7 billion as part of its finance and cooperation deals with Brazil's state-owned oil firm, Petrobras.
Over the past years, Brazil's flagship oil company has been embroiled with massive graft scandal. But with the signing of a $3.5 billion financial deal with China Investment Bank earlier this year, the state-owned giant got a major boost.
Economic ties between China and Brazil have grown stronger over the recent years as China's own economy skyrocketed. China has increasingly become Brazil's top trading partner since 2009.
Both nations, as CCTV.com reported, have pledged to advance bilateral cooperation in key services such as "aviation, food processing, machinery equipment, auto and hi-tech products, electricity, mining, and renewable energy," among others.
In terms of investment, China has exponentially increased its investment from a mere $6.5 billion in 2003 to a staggering $83.3 billion in 2012. "China is fulfilling a desperately-needed role of investor in Latin America and the Caribbean." said Charles Tang, chairman of the Rio-based Brazil-China Chamber of Commerce and Industry.
"The US back yard is growing a Chinese back garden, not just in Brazil but all over Latin America," Tang added.
After his Brazil visit, Li is expected to proceed to Colombia, Peru, and Chile to complete his eight-day official visit to regions within Latin America. The visits would reassure its trading partners that China intends to sustain its economic engagement in the region.