Relations of global significance

But despite the smooth and rapid development of ties between China and Brazil, there are also some negative factors. In Brazil, there are still some people who worry about "competition from China" and some even adopt the "China threat" tone. They argue that Brazil's primary products-dominant exports to China, lacking high value added commodities, will result in its dependence on China. They also accuse the exchange rate of the yuan for the competition that Brazil's products face from those of China in overseas markets, saying this has caused a de-industrialization tendency in Brazil. At the same time, China's increased investment in Brazil in recent years has raised concern.

These worries deserve China's attention even though they do not constitute mainstream opinion in Brazil and will not hamper the smooth development of the strategic partnership between the two and their economic cooperation.

To ease these misgivings, China should strengthen dialogue with Brazil and discuss ways to optimize their investment structure and promote the diversity of bilateral trade. At the same time, the two countries should strive to make changes to the bilateral economic and trade cooperation model to ensure both sides can benefit from mutual economic exchanges.

China's 12th Five-Year Plan (2011-2015) and Brazil's hosting of the 2014 World Cup and the 2016 Olympic Games offer huge potential for the further development of bilateral ties. The "go-overseas" strategy pursued by enterprises in both countries, their ongoing diligence in promoting industrial structural upgrading and their endeavor to develop some new industries will also provide more economic and commercial opportunities for bilateral cooperation.

In this context, the two countries should strengthen technological cooperation in areas with huge potential, such as in agriculture, new energy, biology, aerospace, equipment manufacturing and other high-tech sectors, in order to raise the quality of bilateral economic cooperation and increase technological contributions to their economic growth.

At the same time, cultural and personnel exchanges should also be strengthened to consolidate the social foundation for a stronger relationship between the two countries.

The author is an associate research fellow with the Institute of Latin American Studies under the Chinese Academy of Social Sciences.

(China Daily 05/27/2011 page8)