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The Economic Relationship Between Brazil and China: Recent Trends and Prospects

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International Integration of the Brazilian Economy

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Abstract

This chapter aims to analyze the boosting economic relationship between Brazil and China at the beginning of the twenty-first century and identify the prospects for the near future based on the ongoing structural economic and social changes that are currently happening in China. For that, it discusses the changes that the Chinese economy passed in the recent decades and also its most recent trends, characterized by a new era of slower growth, the so-called Chinese “new normal”. The main conclusions are the following: (1) the rapid growth of China in the last few decades profoundly changed the relationship between this nation and Brazil, (2) the new economic perspectives for China can represent a watershed in this relationship, and (3) it is necessary that Brazil prepares itself for this new phase to strengthen the partnership with the Asian country.

The authors are very grateful for the comments and helpful suggestions from Luiz Pinto. The usual caveats apply.

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Notes

  1. 1.

    According to Gallagher and Porzecanski (2010), China competition in manufactures in the last decade affected Latin American manufacturers in a significant way. The authors estimated that approximately 92% of the region’s manufacturing exports were under the threat of Chinese competition. Since the region was not able to compete with cheap Chinese manufacture exports, the fact generated even the worry that the ability of the region to generate long-term economic growth would be impacted by the reprimarization of its productive structure due to the “forced deindustrialization” posed by the Chinese competition.

  2. 2.

    The World Economic Outlook (WEO). Database from April 2015. Retrieved from: http://www.imf.org/external/pubs/ft/weo/2015/01/. Accessed on 10 May 2015.

  3. 3.

    World Bank Development Indicators. Data accessed at on 10 May 2015.

  4. 4.

    Das and N’Diaye (2013) estimate that China is very close to it and will reach the Lewis Turning Point (LTP) between 2020 and 2025. Others believe that China has already passed its “Lewis Point”, and the main indicator for that is the fast increase in real wages.

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Author information

Authors and Affiliations

  1. Fudan University, Shanghai, China

    Santiago Bustelo

  2. Institute of Economics, Federal University of Rio de Janeiro (IE-UFRJ), Rio de Janeiro, Brazil

    Marcos Reis

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  1. Santiago Bustelo
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  2. Marcos Reis
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Editors and Affiliations

  1. Yeshiva University, New York, NY, USA

    Elias C. Grivoyannis

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Bustelo, S., Reis, M. (2019). The Economic Relationship Between Brazil and China: Recent Trends and Prospects. In: Grivoyannis, E. (eds) International Integration of the Brazilian Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-46260-2_9

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  • DOI: https://doi.org/10.1057/978-1-137-46260-2_9

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