China Fever

China, being the worlds most populous nation with a population of 1.4 billion, has all the demand, but none of the supply. On the other hand, Brasil is a country rich in diverse resources. Within the past couple years, this star of Latin America has greatly increased it’s exports to China.

In 1999, total export income was $1.5 billion for Brazil, but in 2010 reached $1.9 billion. Brazil has helped the Asian giant out in everything from soybean and wheat exports to clean water production.

The relations however are not a one way street. China has begun to heavily invest in the technological sector of Brasil as well as other areas. Chinese telecom companies have reached out to spark innovation and production in Brasil. According to the International Energy Agency, between 2005 and 2012 Brazil had received about $18.3 billion worth of investment from China.

Of course the substance that is almost valued more than water these days has not been left out either, Brasilian petroleum company, Petrobras, has teamed up with Chinese Sinopec Petrochemical Corporation to enjoy ventured oil exploration and the creation of a pipeline extending from Southern to Northern Brasil.

The main concerns of these relations are if China will flop on its deals and also if Brasil will simply become and stay a farm, forest and mine based cultivation country. The reality is that Brasil is so much more than that. However with Brasilian political infrastructure, problems such as high interest rates and an exaggerated exchange rate are just some of the things that make progression difficult.

These are some of the reasons why the Brasilian elections are so important. If Brasil is to be the star of Latin America (or maintain its place as the most advanced), there are going to need to be heavy reforms that meet the demands of the country. Brasil, along with others, faces a pinnacle point of being able to manage and control its own country in the wake of great demand by the just implementation of a steady government, or will it crumble and just become a harvest country?


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