Lula wants to reindustrialize Brazil in partnership with Chinese capital, says Haddad – 04/14/2023 – Market

The Minister of Finance, Fernando Haddad, said this Friday (14th) that President Luís Inácio Lula da Silva is seeking a Chinese partnership to re-industrialize Brazil. According to Haddad, this was the focus of the president’s meetings with businessmen and the Chinese government during his visit to Beijing.

Questioned at a press conference if the government is increasingly closer to China and farther away from the US, Haddad said that there is no intention of moving away from anyone, “especially a partner in the quality of the United States”.

“We are making an effort to get closer, we want US investment in Brazil. In fact, we are living almost a moment of disinvestment. Some American companies in the past took the decision to leave Brazil, and we want to re-establish the best relations and we wish partnership with these (sic) three major trade blocs, which is the USA, the European Union and China”, said the minister.

According to Haddad, President Lula’s desire is for Mercosur to strengthen so that, as a block, we can negotiate better trade agreements with the US, the European Union and China. He mentioned new studies on a single currency for bilateral trade. “The country cannot be isolated from anyone, it is too big to keep choosing a partner.”

The minister also said that the government will launch several PPP projects (public-private partnerships) and “will invite the world to participate”. In particular, for the sanitation area. He pointed out, however, that the European Union demands a response and measures against deforestation.

The Brazilian government announced 20 agreements with China, projecting around BRL 50 billion in investment.

Among the pending agreements, there is the establishment of electric car maker BYD in Bahia, which is still waiting for an agreement with the American Ford for the acquisition of its old factory.

Exchange

The minister also stated that it is natural for the dollar to stabilize at a lower level than what had been measured. For him, if the fiscal base recovery agenda proposed by the Lula government is successful, the real will return to the level that would be adequate, despite the fluctuating exchange rate in the country.

“The Brazilian economy responds very quickly to adequate stimuli,” said Haddad.