Brazil and China make agreements on trade, technology, and agribusiness

By Mariana Haubert

The Brazilian government announced this Friday (April 14, 2023) the signing of 15 agreements with China.

President Luiz Inácio Lula da Silva (PT) has been in the Asian country since Wednesday (April 12). He visited Shanghai and Beijing.

Among the agreements announced are some related to the agribusiness sector.

The two countries’ governments will have a work plan for cooperation in electronic certification for products of animal origin.

There will also be a protocol on sanitary and quarantine requirements for processed protein from land animals to be exported from Brazil to China.

Speaking next to the prime minister of China, Li Qiang, this Friday (April 14), Lula said of the will to expand agreements in areas such as science and technology and to develop the space industry with the Asian country.

The two countries will have a protocol for the joint development of the Cbers-6 satellite.

A space cooperation plan for 2023-2032 between China’s National Space Administration and AEB (Brazilian Space Agency) was also announced.

Several agreements are in the communications sector.

Among them, a television co-production agreement between the two countries and another cooperation agreement between Chinese state news agency Xinhua and EBC (Empresa Brasil de Comunicação).

Here are the closed agreements:

1 – memorandum of understanding on the trade facilitation working group between the Ministry of Foreign Affairs and the Ministry of Development, Industry, Trade and Services of Brazil, and the Ministry of Commerce of China.

2 – complementary protocol on the joint development of Cbers-6 between Brazil and the government of China to the “Framework Agreement on Cooperation in Peaceful Applications of Science and Technology in Outer Space between the Government of the Federative Republic of Brazil and the Government of the People’s Republic of China.

3 – memorandum of understanding on cooperation in research and innovation between the Ministry of Science, Technology, and Innovation of Brazil and the Ministry of Science and Technology of China.

4 – memorandum of understanding between the Ministry of Science, Technology, and Innovation of Brazil and the Ministry of Industry and Information Technology of China on cooperation in information and communication technologies.

5 – memorandum of understanding between the Ministry of Development, Industry, Commerce, and Services of Brazil and the National Development and Reform Commission of China for promoting investment and industrial cooperation.

6 – memorandum of understanding on strengthening investment cooperation in the digital economy between the Ministry of Commerce of China and the Ministry of Development, Industry, Commerce, and Services of Brazil.

7 – memorandum of understanding between the Ministry of Finance of Brazil and the Ministry of Finance of China.

8 – memorandum of understanding on cooperation in information and communications between the Ministry of Communications of Brazil, the National Telecommunications Agency of the Federative Republic of Brazil, and the Ministry of Industry and Information Technology of China.

9 – TV co-production agreement between the Federative Republic of Brazil and the government of the People’s Republic of China.

10 – memorandum of understanding between China’s media group and the Secretariat of Institutional Relations of the Presidency of the Federative Republic of Brazil.

11 – cooperation agreement between Xinhua news agency and (EBC) Empresa Brasil de Comunicação.

12 – memorandum of understanding between the Ministry of Development and Social Assistance, Family and Fight Against Hunger, the Ministry of Agrarian Development and Family Agriculture of the Federative Republic of Brazil, and the Ministry of Agriculture and Rural Affairs of the People’s Republic of China on cooperation for social and rural development and fight against hunger and poverty.

13 – plan for space cooperation 2023-2032 between the National Space Administration of China and the Brazilian Space Agency.

14 – Brazil-China work plan for cooperation in electronic certification for products of animal origin.

15 – protocol between the Ministry of Agriculture and Livestock of the Federative Republic of Brazil and the General Administration of Customs of the People’s Republic of China on sanitary and quarantine requirements for processed protein from land animals to be exported from Brazil to China.

PRIVATE SECTOR

Agreements between Brazil’s public sector and Chinese companies and institutions were also announced.

Among them, from the government of Ceará with Huawei.

Here is the list:

1 – the Ministry of Infrastructure, ANTAQ (National Agency for Waterway Transport), and the Santos Port Authority signed an agreement with the Export COFCO Terminal to develop the STS11 Project in the Port of Santos. The concession is for 25 years, and the Project’s planned capacity is over 14 million tonnes.

2 – the Ministry of Mines and Energy and SPIC signed an agreement to conduct feasibility studies for the construction and operation of small solar power plants, complemented by mini wind turbines, batteries, and water purifiers, in remote areas of the Amazon forest, focusing on isolated communities.

3 – The Government of Ceará signed seven agreements

• with Mingyang Smart Energy Group for the investment and implementation of the technology and repair center for wind turbines in the State of Ceará;
• with the International Powerchina Group for the investment and implementation of the renewable energy and green hydrogen center in the State;
• with SPIC, to carry out feasibility studies for projects in the production of wind, solar, blue, and green hydrogen and fuels within the Pecém Industrial and Port Complex;
• with Gansu Science & Technology Investment Group to “encourage the joint development of both parties;
• with Envision Energy International Trading Limited for investment in the production of energy transition technologies in Ceará;
• with Boc International Holdings Limited to jointly study potential commercial and financial collaborations with Ceará and Chinese companies;
• with Huawei do Brasil to enable technological cooperation and feasibility studies for investments in the State.

4 – Apex-Brasil and Venture Cup China formalized a partnership to support Brazilian startups to develop business in China and organize an innovation week, focusing on solutions related to the green and low carbon economy and sustainability applied to agribusiness and digitalization.

5 – Apez-Brazil and Beijing Hycore Innovation signed a cooperation instrument intending to support Brazilian startups to establish business with China in the context of the entrepreneurship competition and global event HICOOL 2023.

Agreements were also closed between Chinese and Brazilian business sector representatives and the Brazilian State in areas such as renewable energy, the automotive industry, agribusiness, green credit lines, information technology, health, and infrastructure.

Here is the list:

1 – Prumo Logística and SPIC will conduct studies to evaluate the financial and technical feasibility of renewable energy projects (offshore wind, solar, blue, and green hydrogen) at Açu Port in Rio de Janeiro.

2 – Seara announced the acquisition of 280 electric trucks from JAC Motors. The purchase will be carried out by No Carbon, a JBS New Business company, for local distribution in Brazil. Each electric vehicle avoids the annual release of about 30 tons of CO2.

3 – Friboi partnered with WHG to use the company’s structure to distribute Friboi products in China.

4 – JBS and the Bank of China signed a partnership to grant export credit to JBS, with a term of up to 4 years.

5 – Banco do Brasil and ICB (Cooperation Industrial and Commercial Bank of China) signed a memorandum of understanding for cooperation in the fight against climate change, with goals of sustainable development and social equity, investment, financing, and technical support, among others.

6 – Furnas and State Grid will develop a project to revitalize the DC transmission of the Itaipu hydroelectric plant, the largest Brazilian hydroelectric plant.

7 – Correios and the Cainiao Group have signed an agreement to improve end-to-end delivery time and the efficiency of the Brazilian company’s delivery activities; design and develop new national and international logistics service products; establish and expand the network of automatic collection instruments in Brazil, among other objectives.

8 – Suzano signed three agreements with Chinese partners:

• with COSCO for the construction of 5 pulp and bio-based product transportation vessels, including a long-term transportation contract;
• memorandum of understanding with China Forestry Group for collaboration on bio-based materials and carbon and R&D investments;
• announcement of the Innovability Hub launch in Zhangjiang Science City, Shanghai.

9 – Vale entered into seven agreements with Chinese partners:

• with Tsinghua University for technical knowledge exchange;
• with Central South University for scientific research in low-carbon steelmaking;
• with XCMG for developing the world’s 1st zero-emission motor grader to be used exclusively in mining activities.
• Cooperation agreement with Baoshan Iron & Steel (a Baowu group company) for the production of biochar and its applications, aiming at decarbonization solutions in the steel industry;
• Two agreements with Chinese banking institutions: with ICBC (Industrial and Commercial Bank of China) and with the Bank of China, for financial cooperation involving comprehensive credit lines for mining in Brazil and for large projects around the world, as well as other financial partnerships, especially green financial cooperation, strengthening green energy projects;
• Vale Indonesia signed a project investment agreement with Tisco (Baowu Group) and Xinhai to build an RKEF nickel processing plant and other support facilities.

10 – Odebrecht Engineering & Construction, Power China, and Sete Partners signed a partnership to bring joint solutions to infrastructure projects in Brazil.

11 – BOCOM BBM Bank announced its adhesion to CIPS (China Interbank Payment System), the Chinese alternative to Swift. The expectation is to reduce the costs of commercial transactions with the direct exchange between Brazilian and Chinese currencies.

12 – the Brazilian branch of the Industrial and Commercial Bank of China (Brazil) started to act as a clearing bank of the Chinese currency in Brazil. Reducing restrictions on using the Renminbi aims to promote bilateral trade further and facilitate investments.

13 – Unifique, which provides internet access, mobile, fixed telephony, TVHD and data center services, and Zhongxing Telecom Equipment, signed an agreement to strengthen the 5G network coverage in the South region of Brazil.

14 – VYP Medicine and Chinese Association (Shenzhen) Internet signed an agreement to register and commercialize Azvudine in Brazil – Azvudine is the 1st drug for the oral treatment of small molecule neo-coronavirus, developed in China

15 – ETERC Engineering and the Chinese state-owned company CITIC Construction Co. signed a partnership for joint activities in infrastructure projects and in Brazil’s social interest housing program.

16 – Propav Construções e Montagens and China Hualong signed a memorandum to jointly develop commercial opportunities for exporting goods and services in the infrastructure sector.

17 – Motrice Soluções em Energia and China Gansu International Corporation for Economic and Technical Cooperation Co., ltd. signed a renewable energy memorandum focusing on the import and execution of services and investments.

18 – the Brazilian company BMV Global made two agreements with Chinese companies for the commercialization of biodiversity credits:

• with HRH (Chongqing) to promote sustainable trade and service and launch the biodiversity credit trading platform between China and Brazil;
• with HRH Pharmaceutical, acquiring biodiversity credit to offset its environmental impact, and obtaining the ESG good practice seal – BMV sustainability seal.

19 – Sete Partners and Sinomec partnered in renewable energy, agriculture, and other sectors.

20 – Sete Partners and Tianjin Food Group partnered to create a binational company to expand investments in the Brazilian agricultural chain in several areas, including logistics.

21 – Comexport signed an agreement with Furui to sell the company’s products and solutions in the Brazilian market.

LULA IN CHINA

The Brazilian president arrived in Shanghai on Wednesday (April 12) with an entourage of at least 73 people.

The next day he attended the ceremony celebrating Dilma Rousseff’s (PT) inauguration as president of the NDB (New Development Bank), the Bank of the BRICS.

In his speech, he defended the realization of trade in the currencies of the BRICS member countries.

On March 29, during a visit of a delegation of Brazilian business people to China, the Asian country authorized the subsidiary ICBC (Industrial and Commercial Bank of China) to make direct compensation from yuan to real.

Lula also criticized the IMF (International Monetary Fund). He said the banks “cannot continue stifling countries’ economies.

With information from Poder360