BEIJING: Chinese President Xi Jinping and Brazilian counterpart Luiz Inacio Lula da Silva met in Beijing on Friday to affirm their countries’ close economic and diplomatic ties.
During the meeting, Xi assured Lula that China’s development would create new opportunities for Brazil. The visit by Lula, who took office in January, aims to strengthen trade relations and position Brazil as a global go-between and deal broker.
In a readout from China’s Ministry of Foreign Affairs, Xi stated that China views its relations with Brazil as a diplomatic high priority, adding that “China will pursue high-quality development…and promote high-standard opening-up.
The visit will unlock new opportunities for Brazil and countries around the world.”
Lula has been vocal about his criticisms of the US dollar and its ubiquitous use in almost all global trade transactions. His government recently announced a deal with Beijing to trade in their own currencies, bypassing the dollar as an intermediary.
Under the agreement, Brazil and China have named two banks to conduct their massive trade and financial transactions by directly exchanging reais for yuan and vice versa.
Lula’s stance against the US dollar was further reiterated during a ceremony in Shanghai where he inaugurated his political ally Dilma Rousseff as president of the development bank established by the BRICS nations Brazil, India, Russia, China, and South Africa.
“Who decided the US dollar would be the (world’s) currency?” Lula questioned. “Why can not a bank like the BRICS bank have a currency to finance trade between China and Brazil, between Brazil and other BRICS countries?”
Brazil seeking to mediate in Ukraine conflict
Lula’s visit also comes at a time when Brazil is seeking to mediate in the Ukraine conflict. The country has positioned itself as a mediator, while China is under pressure to do more. Both Brazil and China have refused to join Western states in imposing sanctions on Russia for its invasion of Ukraine.
Brazil’s Lula meets with Chinese President Xi Jinping in Beijing to strengthen ties and push for more financial autonomy for developing countries. The meeting comes just a day after the veteran leftist leader criticized the US dollar’s dominance in global trade transactions and lashed out at the International Monetary Fund (IMF).
Lula, who recently announced a deal with Beijing to trade in their own currencies, is looking to position Brazil as a key player on the global stage and deepen trade ties with China, Brazil’s top trading partner. During his visit to China, Lula is seeking friendly relations across the board after four years of isolation under his far-right predecessor, Jair Bolsonaro.
The Brazilian leader arrived in China on Wednesday and was greeted by President Xi at a red-carpet ceremony outside Beijing’s Great Hall of the People. The two leaders held talks later in the day and discussed the Ukraine conflict, where Brazil has positioned itself as a mediator while China is under pressure to do more. Both countries have refused to join Western nations in imposing new sanctions on Russia for its invasion.
Lula promised in Shanghai that “Brazil is back” on the international stage after an “inexplicable absence” and sought more financial autonomy for developing countries. He criticized the IMF’s harsh spending cuts on cash-strapped countries like Brazil’s neighbor Argentina in exchange for bailout loans and stated that “no bank should be asphyxiating nations’ economies the way the IMF is doing now.”
Lula, who earlier led Brazil from 2003 to 2010, visited the United States (US) President Joe Biden in February and is now seeking to smooth relations with China after relations deteriorated under Bolsonaro. The 77-year-old president is travelling with a large delegation of about 40 high-level officials, including cabinet members, governors, and members of Congress.
