Written by Michael Thervil
Photographer unknown
Despite the failed manufacturing cap placed on China by America because of America's accusation that China is engaging in “over capacity”; there seems to be no stopping China as China doubles down on their expansion around the world in the commercial and logistical sector. With Brazil now breaking their position of non-alliance in favor of joining China's Belt and Road initiative also simply known as the “BRI”, aka the “New Silk Road”, it allows for both China and Brazil to further engage in free trade. The important question is: “What does Brazil and China get out of this newly formed commercial and logistical deal?” Followed by the second question: “How does this deal affect the world?”
Answering the first question of “What does Brazil and China get out of this newly formed commercial and logistical deal?” The first thing that Brazil gets is a brand-new commercial ship port with all the latest technologically advanced logistical bells and whistles a new commercial ship port can get. Once this port is operational, which should be sometime in September or August of this year, it will significantly increase the economic ebb and flow of Brazil and while benefiting its immediate neighboring countries. When it comes to what China gets, it obtains yet another opportunity to expand not only it’s influence in the world, but it also gets the opportunity to increase its GDP (Gross Domestic Product) while strengthening both is economic and commercial ties with Brazil. China also gets the opportunity to cement is place as a global leader when it comes to the exportation of goods, services, and infrastructure.
Photo by ACU PORT
Answering the second question, “How does this deal affect the world?” It affects the world because as nations such as Brazil, China, Russia, and south Africa push for the world to divest from utilizing the American dollar as its reserve currency, it will ultimately allow for all nations around the world to strengthen their economies, increase their chances of success when it comes to industrialization, and uplift the living conditions of their citizens. The is deal between China and Brazil, both who are two of the five founding members of the BRICS global alliance will allow both nations to not only engage in direct trade, thus lowering the price of goods and services for the people of Brazil: but it allows for both countries to increase de-dollarization of the U.S. on the global stage. As this happens, this will encourage other nations to follow suit in their own ways.
Instead of settling business transactions in U.S. dollars, Brazil and China will both be able to settle their business transactions in their local currencies. In doing so, this will allow the currencies of both countries to not only be free from the weaponization of the U.S. Dollar, but this will enable both countries to strengthen their currencies without the burdensome interference of the United States. It was reported that China currently has over 100 ports in 50 countries, in nearly every ocean throughout the world. This means that China’s prowess when it comes to operating commercial ports and transnational trade is colossal. In short, China has dwarfed the United States when it comes to manufacturing, logistics, and international trade.
Another thing that has been reported is that China’s trade with Latin America countries has exponentially grown to 4000% since 2000. We are able to say this because in 2000, China only engaged in 20 million dollars’ worth of trade with Latin America. Fast forward to 2023, that number has grown to $490 billion. If China continues to engage in business practices like this, it can be said that they will engage in nearly a trillion dollars’ worth of trade with Latin American countries in another 20 years or slightly less depending on how aggressive China wants to be.
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