quarta-feira, 14 de novembro de 2018

Far beyond the 'trinket': China is the main source of technological products for Brazil

Temer deu uma camiseta da seleção brasileira de futebol ao presidente Xi Jinping.
It is not just "trinkets" and commodities that the trade relationship between Brazil and China is made. While Beijing and Washington wage a tariff war, Brazil consolidates a billion dollar commercial and technological partnership with the Chinese. The wording shows the volume and importance of this trade.

"In Brazil we still have the myth that China is a country that has low technology products. When they arrived here in the 1980s, that was what happened, the people were going to March 25 [in São Paulo] to buy cheap products "said Alexander Uehara, coordinator of the Center for Asian Studies and Business at ESPM." It's not a big deal, "he said.

The Organization for Economic Co-operation and Development (OECD) has a classification to organize international trade according to its technological intensity. The items are evaluated in different groups, from products with high technological intensity (aerospace, pharmaceutical, computer science, among others), to articles with low technology participation, such as footwear, wood, paper, food and beverages.


From January to October of this year, Brazil spent abroad US $ 25.47 billion in products of high technological intensity. And our main market in this segment was China, where we bought $ 7.24 billion - far above the $ 3.21 billion spent buying from the United States. The data are from the Ministry of Industry, Foreign Trade and Services.

Uehara points out that Brazil is experiencing an "interdependence" with China - responsible for selling to Brazil electronic components and technological items important to the national industry. He points out that the partnership is key because it can help the Brazilian industrial park to anchor itself in products with less volatile prices.

"It can be argued that our agriculture also has technology and investment, it does, but soybeans, when the market is up, is up to 100%, but down 50%. , it appreciates a little and when the market is low it does not devalue 50%. I have never seen any car that devalued 50% from one year to the other, as with soy, oil and commodities in general.

At the moment, Brazil is moving towards an ever smaller share of industry in national GDP. According to the IBGE, the sector represents 11.8% of all that is produced in the country, the lowest level since the 1950s.

Uehara believes that Brazil "is lagging behind" in industries that can take the country to "another level" and cites as an example the possible sale of Embraer to Boeing.

The ESPM professor also recalls that Brazil and China have maintained an aerospace partnership program for more than 30 years. Five satellites of this initiative have already been launched, operating in tasks such as deforestation monitoring, reservoir levels, natural disasters and agricultural expansion. In 2019, the sixth satellite of the Sino-Brazilian Satellite of Land Resources (Cbers) program will be launched.

"You can not think of having an international insertion today without taking into account China, which is the fastest growing country in the world," says Uehara. The scholar, however, defends a "more conscious" relationship between the two countries: "China does not come to Brazil because it does philanthropy, it comes because it has interests in the Brazilian market, in commodities. take any product to the Chinese market just because we have a strategic partnership, we need to have trading. "

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