The ambassador of China to Brazil, Yang Wanming, reinforced on Friday the ties of cooperation and exchanges between the two countries, with benefits to both peoples. The only country in Latin America to exceed US $ 100 billion in trade with China, Brazil has also received US $ 80 billion in Chinese investments, generating 40,000 direct jobs, according to the ambassador.
In an online conversation held this Friday morning with journalists and members of Brazilian think tanks, the diplomat highlighted China’s confidence in Brazilian development, which he also projects for the medium and long term. Such confidence is reflected in the commitment to the local economy. Recently, he recalled, the Chinese BYD signed a contract to supply vehicles for line 17 of the subway in São Paulo – the process is suspended by court decision, but the company responsible for the subway says it will appeal.
The diplomat talked to the Brazilians in the context of the pandemic caused by the coronavirus, and pointed out that both the current crisis and criticism of China by some sectors in Brazil are transitory. For him, it is necessary to focus on the long term, on dialogue and on building new ties. Yang said that China would insist on building diplomacy aimed at a community with a shared future for humanity. According to him, the current pandemic teaches that problems and their solutions are challenges for all countries.
CHINA POST PANDEMIC
The ambassador said that China today has four pillars for post-pandemic recovery: industrialization, computerization, urbanization and modernization of agriculture. Yang maintains that China has confidence in its own economy, in which consumption is already the main driving force for growth, representing 57% of the total. He recalled the fact that in 2019 China surpassed the barrier of $ 10,000 in per capita income and that the country should meet the goal of eliminating poverty later this year.
According to data from the Chinese government, there are still 5.5 million people in this condition in China. This goal was confirmed this year by Chinese Prime Minister Li Keqiang at the opening of the National People’s Assembly in early May.
For the ambassador, China has a positive prognosis as it has been able to neutralize risks caused by COVID-19 thanks to government efforts to control the spread of the coronavirus in a relatively short period. Today, Yang pointed out, more than 99% of the main companies have already resumed production and 95% of employees have returned to work.
In addition to these efforts, the ambassador recalled that, according to the Chinese government, an increase of 2 trillion yuan was allowed in China’s budget deficit, in addition to the issue of government bonds that will be transferred to local governments to stimulate consumption. In addition, Beijing has implemented rules for exemption or reduction of social security charges for companies, whether micro, small, medium or large. Only these measures in the fiscal sphere should generate a reduction of 2.5 trillion yuan in taxes for companies, according to the diplomat.
Investments of 600 billion yuan are also planned for projects that leverage information networks, the use of vehicles powered by new energies and major urbanization, transportation and water conservation works.
China’s greater openness to foreign trade and foreign investment, in addition to the opening of free trade ports in the country, were also highlighted by the diplomat as important for the Chinese economy and its relationship with other nations.
NEW INFRASTRUCTURE AND TECHNOLOGY
The Chinese ambassador highlighted the role of innovation policy as an important driving force for China’s growth, which employs 2.19% of its Gross Domestic Product (GDP) in scientific research, a percentage higher than the European Union average and which makes China, the developing country that invests the most in the sector. China also employs the largest number of people in research and development, obtaining today the largest number of patents in the world and the 14th place in the global innovation index.
In this environment and in the face of the crisis caused by the new coronavirus, China is responsible for developing new business models in online shopping, in addition to several platforms that allow remote work and via the internet, some of which had revenues increased by up to 60%. Currently, 20,000 new companies from this ecosystem are created every day in China, according to the ambassador.
Towards a world mediated by more technology, the 5G network will be an important factor for development and, in this sense, Yang recalled that China already has technology to supply equipment that allows the installation of the network both in China and in other countries. “Huawei has been in Brazil for 20 years, with security and quality, being respected and recommended by entities and companies in the sector,” said the diplomat.
According to him, Brazil lacks this technology and can benefit from implementing it. The 5G network allows greater speed in data transmission, and is essential for the automation of the industry, in addition to providing other benefits for the digital economy. It is important to highlight that even with equipment from China or other countries, telecommunications operators are the ones that currently hold operating licenses in the country. Huawei, highlighted by the ambassador, or any other company that wins the bid for the equipment, only provides the means for its implementation.
