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Brazil and China: South-South Partnership or North-South Competition?
Carlos Pereira 2011-04-06
[POLICY PAPER Number 26]
(March 2011)
Abstract
To shed some light on the possibilities and limits of meaningful coalitions among emerging countries, this paper focuses on Brazil-China relations. Three main topics present a puzzle: trade relations, the political-strategic realm, and foreign direct investment. This paper develops a comparative assessment between the two countries in those areas, and identifies the extent to which the two emerging powers should be understood as partners and/or competitors. Data was collected, not only on these three aspects, but also on the governance structure and institutional safeguards in place in both China and Brazil. The analysis suggests that, even with advantageous trade relations, there is a pattern of growing imbalances and asymmetries in trade flows that are more favorable to China than Brazil. Therefore, Brazil and China are bound to be competitors, but it is not clear how bilateral imbalances may affect multilateral cooperation between the two countries.
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