U.S. Secretary of State Mike Pompeo warned that as the U.S. and Brazilian business partnership strengthens, both countries need to reduce their dependence on Chinese imports in order to protect their security.
Pompeo made the warning Monday (Oct. 19) while speaking at the U.S.-Brazil Connections Summit hosted by the U.S. Chamber of Commerce, which is aimed at strengthening U.S.-Brazilian bilateral cooperation in the post-epidemic economic recovery period.
Pompeo stressed the importance of expanding U.S.-Brazilian bilateral economic ties in light of what he called the “enormous risks” posed by China’s heavy involvement in the U.S. and Brazilian economies.
As long as we can find ways to increase trade between our two countries, we can reduce their dependence on key projects from China,” he said in the speech.
Photo: President Jair Bolsonaro of Brazil
File photo: President of Brazil, Jair Bolsonaro
Brazil’s President Jair Bolsonaro stressed at the summit that the relationship between the United States and Brazil has never been stronger.
Jair Bolsonaro, who was sworn in as Brazil’s president on January 1, 2019, is known as a pro-American president. During his campaign, he publicly expressed his admiration for President Trump, promising to reshape Brazil’s foreign policy, reduce its involvement in regional multilateral cooperation mechanisms, and focus on bilateral relations, especially improving relations with Washington.
On China policy, Jair Bolsonaro views Beijing as a predator seeking to dominate key sectors of Brazil’s economy and has vowed to block large-scale Chinese purchases of Brazil’s energy assets and infrastructure.
The Trump administration has also sought to promote relations with Brazil, providing a counterweight to China and eager to gain an edge in the new “great power” race.
However, analysts believe that reducing Brazil’s dependence on China will not be easy. China is Brazil’s largest trading partner, and Brazil’s trade with China has been in surplus for the past two years. According to official Chinese data, in 2018, bilateral trade between the two countries reached a record $100 billion, with Brazilian exports to China at $239.5 billion and imports at $181.2 billion. 2019, bilateral trade between Brazil and China will reach another record of $115.342 billion, with Chinese exports at $35.544 billion and imports at $79.798 billion. China’s exports amounted to $35.544 billion and imports $79.798 billion. China is also a large buyer of Brazilian soybeans and iron ore.
In 2018, the United States was Brazil’s third largest trading partner. In 2019, the U.S. will be Brazil’s second largest trading partner. Reuters reports that U.S. trade in goods and services with Brazil is estimated to total $105.1 billion in 2019.
Separately, Reuters reported that Bolsonaro has not yet made a decision on whether to ban Brazilian communications companies from using 5G equipment made by China’s Huawei, as requested by the U.S. government.
China’s Foreign Ministry on Tuesday (Oct. 20) responded to Secretary of State Pompeo’s warning a day earlier about reducing dependence on Chinese imports. Spokesman Zhao Lijian said it was a deliberate attempt by individual U.S. politicians to smear and sow discord between China and other countries in normal economic and trade cooperation out of a Cold War mentality and ideological prejudice, which China strongly opposes.
At Monday’s summit, Bolsonaro announced three agreements with the United States to ensure good business practices and prevent corruption. He said the agreements will cut red tape and increase trade and investment.
Bolsonaro also said that since he took office, the Brazilian government, along with President Trump, has elevated relations between Brazil and the United States to the best level in history, opening a new chapter in the relationship between the two countries.
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