How China is Winning South America Brazil Signs On to Belt and Road| Info Safari

How China is Winning South America? Brazil Signs On to Belt and Road | Info Safari

Introduction

China has just scored a significant geopolitical win this past week as Brazil, South America’s largest economy, has officially expressed interest in joining China’s Belt and Road Initiative (BRI). This partnership could transform the entire continent's future and represents a strategic move that China has diligently cultivated over many years.

China's Growing Influence in Latin America

Latin America is rich in natural resources, and China has been developing ports, mines, railways, roads, and much more to expand its reach. At the turn of the century, China's trade with Latin America was only $ 122 billion. Fast forward to 2023, and that number has grown to over $ 490 billion, representing an incredible 4,000% increase.

Brazil and China have always maintained great relations, recently celebrating the 50th anniversary of their diplomatic relations. Both countries are also founding members of the BRICS alliance. However, when China launched the Belt and Road Initiative in 2013, Brazil hesitated to join and has maintained that stance for the past 11 years. The primary reason is Brazil's strategic non-alignment policy, aiming to maintain good relations with multiple superpowers including the United States and the European Union.

The Multi-Polar World and China’s Strategy

In the current multi-polar world, no developing nation wants to align exclusively with only one superpower. While the United States is a valuable security partner, China dominates in manufacturing and trade. By 2020, China had become the world's dominant trading partner, effectively positioning the United States as a regional player in global trade.

China's strategy has been meticulous and long-term. It began with Deng Xiaoping’s economic policies that opened its economy to foreign investment and expanded through partnerships worldwide. In 2013, Xi Jinping formally launched the Belt and Road Initiative with the goal of expanding China’s trade network globally, fueling its economy for years to come.

Brazil’s Strategic Shift

China has achieved remarkable success on the global stage due to its emphasis on tangible infrastructure projects that have an immediate impact on local economies, unlike the United States, which often focuses on promoting democracy and the rule of law.

A critical change in Brazil's stance can be linked to the developments in Peru. Just 50 miles north of Lima lies an impressive new $ 3.6 billion Chinese port that will change the entire future of Peru and South America. This new port will become a crucial connecting point for goods from Ecuador, Chile, Colombia, and Brazil bound for China, enhancing trade between these regions.

The Brazilian President Lula has been closely observing these benefits and has decided to explore the BRI membership for Brazil. Brazil has also been invited to attend the APEC meeting this November, further solidifying its commitment to join the BRI.

Global Trade and Future Prospects

China operates nearly 100 ports in over 50 countries, playing a pivotal role in global trade. The Chinese state-owned shipping company COSCO will exclusively operate the new Peruvian port, demonstrating China's dominance in global shipping and port technology.

In addition to ports, China is also a leader in telecommunications and EV technology. China’s Huawei and BYD have been expanding their presence in Latin America, offering tangible benefits like 5G technology and environmentally friendly EVs.

The Bigger Picture

The world is changing with shifting trading partners, reduced reliance on the US dollar in global trade, and significant developments in gold and crypto markets. With the upcoming 2024 U.S. elections, the global landscape holds considerable uncertainty.

The rising U.S. national debt, which will soon pass $ 35 trillion, and increasing inflation add to the economic concerns highlighted by influential figures like Elon Musk who warned that the dollar would be worth nothing if the U.S. doesn’t address its national debt.

Conclusion

China’s strategic initiatives and tangible benefits in infrastructure, technology, and trade have positioned it as a dominant global player, particularly in South America. Brazil’s decision to join the BRI marks a significant step in the evolving geopolitical landscape, showcasing how developing nations are re-aligning in this multi-polar world.

Keywords

Geopolitical win
China
Belt and Road Initiative (BRI)
Brazil
Latin America
Trade
Non-alignment
Multi-polar world
Xi Jinping
Peru
Infrastructure projects
Global trade
U.S. dollar
National debt
Elon Musk

FAQ

Q: What is the Belt and Road Initiative (BRI)? A: The Belt and Road Initiative is China’s global infrastructure development strategy launched in 2013 to enhance trade and stimulate economic growth across Asia and beyond by building trade routes.

Q: Why did Brazil hesitate to join the BRI initially? A: Brazil maintained a non-alignment strategy to keep good relations with multiple superpowers like the United States and the European Union, which are important investment partners.

Q: What changed Brazil's stance towards the BRI? A: Developments in Peru, specifically the construction of a new Chinese port, demonstrated the immediate benefits of such partnerships, prompting Brazil to re-evaluate its position.

Q: How many ports does China operate globally? A: China owns or operates nearly 100 ports in over 50 countries.

Q: What are some of the tangible benefits China offers to its partner countries? A: China provides significant infrastructure projects like ports, railways, and 5G technology, which have an immediate positive impact on local economies.

Q: What concerns are there about the U.S. dollar? A: Rising inflation and national debt in the U.S. are major concerns, with figures like Elon Musk warning that the dollar could be devalued if these issues are not addressed.