It is expected that Brazil and China will sign about 20 bilateral agreements during the Brazilian president’s visit to China. Experts pointed out that the two countries may announce the use of the Chinese yuan in mutual trade.
The Brazilian government said in a statement that Brazil and China will sign at least 20 bilateral agreements during the visit of Brazilian President Luiz Inacio Lula da Silva, adding that the president plans to visit Shanghai and Beijing, where he will meet his Chinese counterpart Xi Jinping next Friday.
The statement also indicated that the two presidents will discuss issues of trade, investment, re-industrialization, energy, climate change and peace agreements.
Brazilian President Luiz Inacio Lula da Silva arrived in China on Tuesday for an official visit aimed at strengthening relations with his country’s largest trading partner.
China is Brazil’s largest export market, buying tens of billions of dollars’ worth of soybeans, beef, iron ore, poultry, sugarcane, cotton and crude oil each year. In contrast, Brazil is the largest recipient of Chinese investment in Latin America, according to Chinese state media.
Economic expert Alexander Nazarov suggested that the two countries would announce that they would adopt the Chinese yuan in bilateral trade, which would be a blow from the two largest economies in Asia and America to the US dollar.
“Brazilian President Lula da Silva is visiting China. The main thing I expect from the visit is announcing the use of the Chinese yuan in mutual trade. It seems that the world is burying the United States,” the expert said in a post on his channel on the “Telegram” application.
At the end of last March, the central banks of Brazil and China signed a memorandum of understanding providing for the establishment of an external clearing center, and this is an indication that the two countries agreed to abandon the dollar in their bilateral trade dealings.
This article was originally published by RT.