Brazil pull out from BRI
Brazil decides against joining China’s BRI, opting for alternative collaboration with Chinese investors, sparking global debate
Brazil has dealt a significant blow to China’s Belt and Road Initiative (BRI) by choosing not to participate in Beijing’s large-scale project, making it the second BRICS country, after India, to withhold support for the initiative.
President Lula da Silva will lead Brazil without joining the BRI and will explore other methods to work with Chinese investors, according to Celso Amorim, Special Presidential Adviser for International Affairs, on Monday (October 28, 2024).
Brazil aims to elevate its connection with China without the need for a formal agreement, as stated to Brazilian newspaper O Globo.
Mr. Amorim stated that Brazil is not agreeing to a treaty, clarifying that they do not view Chinese infrastructure and trade projects as a form of security.
As per Mr. Amorim, the goal is to leverage some aspects of the Belt and Road framework to discover “synergy” between Brazilian infrastructure projects and the investment funds linked to the initiative, even if not officially becoming a part of the group, as reported by the South China Morning Post based in Hong Kong.
Mr. Amorim said that the Chinese may use the term “belt [and road]” but what really counts are the projects Brazil considers crucial, which may not be approved by Beijing.
According to the Post, the decision goes against China’s intentions to highlight Brazil’s participation in the initiative during Chinese President Xi Jinping’s upcoming state visit to Brasilia on November 20.
Officials from the economy and foreign affairs ministries of Brazil have recently expressed their disagreement with the idea, according to the statement.
The widespread belief in Brazil was that participating in China’s main infrastructure initiative would not only not bring any concrete advantages for Brazil in the near future but could also strain relations with a possible Trump government.
Mr. Amorim and the president’s main assistant, Rui Costa, went to Beijing last week to talk about the project. Reportedly, sources said they came back from China’s offers feeling “unconvinced and unimpressed,” as per the Post.
Mr. Lula’s absence from the recent BRICS summit in Kazan was because of an injury, while his colleague, former Brazilian President Dilma Rousseff, now leads the BRICS New Development Bank in Shanghai.
The original members of BRICS were Brazil, Russia, India, China, and South Africa. New memberships have been granted to Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
Brazil, following India, will be the second BRICS member to not support the BRI.
India was the initial country to express concerns and remained firm in its disapproval of BRI, an initiative by Chinese President Xi Jinping to enhance China’s global influence through investments in infrastructure development.
India has objected to China’s construction of the $60 billion China-Pakistan Economic Corridor (CPEC), which is considered the main project of the BRI, passing through Pakistan-occupied Kashmir (POK) against India’s sovereignty.
India is also outspoken in its disapproval of BRI initiatives, emphasizing the need for adherence to global standards, effective governance, and legal principles, as well as prioritizing transparency, openness, and financial viability.
U.S. Trade Representative Katherine Tai recently urged Brazil to view the proposal to join BRI through an “objective lens” and “risk management”.
The comments were deemed by the Chinese embassy in Brasilia as “irresponsible” and “disrespectful”.
In an editorial on Monday, China’s state-controlled Global Times referred to Ms. Tai’s criticisms of the BRI as being reminiscent of the “Monroe Doctrine”.
It was stated that Brazil does not rely on others to decide on cooperation or partnerships, and that economic and trade collaborations between China and Latin America should not be questioned by external parties.
It was stated that the U.S. is currently working on constructing a “small yard, high fence” to counter China’s influence in Brazil and other Latin American nations.
The collaboration between China and Brazil serves the interests of both nations and supports the Global South in creating a fairer and more balanced global economic system. It was mentioned that this trend is unstoppable by Washington.
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