- The recent visit of the President of Brazil to China could mean a significant step towards the construction of a more multipolar world characterized by a lower degree of centralization of power and the absence of hegemony.
- During the visit, the agreement to carry out commercial operations in their respective currencies, instead of depending on the US dollar, was discussed.
- This will allow the countries to be able to work in a basket of currencies and use their own local currencies, also they do not rule out the possibility of having a common currency for the BRICS,
Brazil and China, two vastly different countries in various aspects and separated by 16,622 kilometers of distance between them, has not prevented them from reaching agreements that can benefit both countries. This thanks to the visit of President of Brazil, Luiz Ignacio Lula da Silva to the People’s Republic, an event in which the president met with his Chinese counterpart, Xi Jinping, over a very broad agenda.
In an exclusive interview with the newspaper Global TimesCelso Amorim, the main foreign policy adviser to the president of Brazil, indicated that Lula’s visit to eastern lands could be the first significant step towards building a more multipolar world. According to him, this world would be characterized by a lesser degree of centralization of power and the absence of hegemony.
Brazil and China are getting closer
Celso Amorim compared Lula’s current visit to China with his previous visit to the United States, noting that the latter was mainly political in nature, and that the issues addressed were not as broad as those discussed during the visit to China.
Celso Amorim, who previously served as Brazil’s Minister of Foreign Affairs and Defense, highlighted the importance of Lula’s current visit, as it is the first time the president has traveled outside the Americas since his inauguration on January 1. . In this regard, Amorim stated that “Brazil and China are getting closer.”
Commercial operations in their respective currencies
During the visit from the Brazilian president to China, was discussed another relevant point that consisted of the agreement to conduct business in their respective currencies, instead of relying on the US dollar.
“I think it is natural that we can do our own trading in our own currencies and this requires some adaptations in relation to the IMF rules. It is natural because the dollar became dominant after World War II; before it was the pound sterling“, he stated during the interview, Amorim.
Amorin also pointed out that this will allow countries to work in a basket of currencies and use their own local currencies, also they do not rule out the possibility of having a common currency for the BRICSand either option will give you the financial freedom that you currently do not have due to the use of the dollar.
“I think it is very important that we are free from the dominance of a single currency, because sometimes it is used politically.”said.
BRICS in favor of de-dollarization
It is important to note that both nations, Brazil and China are part of the BRICS group, which is working on the development of a new currency that will allow its members to depend even less on the US dollar. The countries that make up this group are Brazil, Russia, India, China and South Africa.
The foreign policy adviser to the president of Brazil indicated that, sometimes, it is not possible to carry out transactions with countries that are under unilateral sanctions because the transaction must be carried out in US dollars.
As an example, he mentioned the problems that Brazil had in the past with Iran, where only products such as poultry or meat could be sold, but even so there were difficulties in carrying out the trade.
Hello Huawei
At the meeting of the leaders of China and Brazil, relevant issues were discussed beyond the search to eliminate dependence on the US dollar. Among them, cooperation in the semiconductor industry was discussed.
As the United States continues to pressure its allies to avoid doing business with Huawei, the Brazilian diplomat told the Global Times that “A Chinese leader once said: It doesn’t matter if the cat is white or black, as long as it catches mice. Technology has no ideological tendencies, it is simply a means“.
In addition, he stated that Brazil will continue to seek the best economic offer that meets its needs and is more affordable for the country.
“[Cooperar con Huawei] It will be a possibility, but it will be studied technically and economically. And that’s what we decided. There is no [consideraciones] ideological or even geopolitical. Actually, if we can diversify our technology sources, that would be the best for us. So we are very open. We already have cooperation. Huawei is already present in Brazil, and it is already very important “, said.
Full note: