Evaluating Sino-Brazilian Economic Relations:Which Roads For Development In A Resource-Rich Country?

Since its reforms started in 1978, China’s growth has been causing major impacts to the international system. In every continent, developing and industrialised nations alike have witnessed the appearance of debates around the impacts that the Chinese growth may inflict upon their societies. Located in South America, Brazil may be far from China. Even so, it is no exception to this global trend, as in the last decade China rapidly moved, from the position of a distant and relatively unimportant country, to becoming its major trading partner, present in most economic indicators and discussions.But what are the effects of the’rise of China’ for a country like Brazil? Some argue that China’s’thirst for resources’might bring profound changes for the country’s economic structure, some of which associated to a resource curse. There are signs suggesting that the processes of deindustrialisation and of increasing reliance on resources are under way. While some worry about Brazil’s overdependence on resources-and on the Chinese demand for them-, other views emphasise the complementarity of both economies, and the benefits brought by China’s demand for Brazilian commodities and by its investments in sectors such as infrastructure. So far, Brazil’s response has been arguably ambiguous, and it tends to be supportive of deepening ties with the Asian country.This thesis analyses the different paths available for Brazil in the context of its economic relations with China, and their implications for the country’s development. The position defended in this paper is that resource abundance is not inevitably a curse for Brazil. However, in order to avoid the curse, the country needs to adapt to the increasing Chinese presence, by:designing a selective industrial policy; maximising the benefits brought by the Chinese investments; and implementing a sound management of the wealth brought by the exports of resources. Through efficient policies and well-formulated strategies, one may try to ensure that the Sino-Brazilian relations are beneficial for the development of both societies.