China and Brazil: Economic Impacts of a Growing Relationship

Journal of Current Chinese Affairs. 2012;41(1):21-47

 

Journal Homepage

Journal Title: Journal of Current Chinese Affairs

ISSN: 1868-1026 (Print); 1868-4874 (Online)

Publisher: SAGE Publishing

Society/Institution: GIGA German Institute of Global and Area Studies

LCC Subject Category: Political science: Political institutions and public administration - Asia (Asian studies only) | Social Sciences: Social sciences and state - Asia (Asian studies only)

Country of publisher: United Kingdom

Language of fulltext: English

Full-text formats available: PDF, HTML

 

AUTHORS

Rhys Jenkins

EDITORIAL INFORMATION

Double blind peer review

Editorial Board

Instructions for authors

Time From Submission to Publication: 7 weeks

 

Abstract | Full Text

The paper analyses the economic impacts of China’s re-emergence on Brazil, looking at both the direct effects of China on Brazil in terms of bilateral trade and investment flows and the indirect effects through increased competition in export markets for manufactured goods and higher world prices for primary commodities. Despite a surge in Chinese FDI in Brazil in 2010, the main driver of bilateral relations is trade. While bilateral trade has grown rapidly, the pattern that has emerged has given rise to concern because Brazil’s exports are concentrated in a small number of primary products while imports from China are almost entirely of manufactured goods that are becoming more technologically sophisticated over time. Brazil has benefitted in the short term from the high prices of primary commodities (partly caused by growing Chinese demand), but has lost export markets to China in manufactures, contributing to the “primarization” of the country’s export basket.