China pledged more than $8.6 billion in investments and loans in Brazil today as President Dilma Rousseff vows to attract capital to stimulate a slowing economy.
China ordered $3.2 billion worth of jet planes from aircraft manufacturer Embraer SA and offered a $5 billion, three-year credit line to the country’s largest exporter, Vale SA, Rousseff and the iron ore producer’s Chief Executive Officer Murilo Ferreira told reporters today in Brasilia. The announcement followed Rousseff’s meeting with China’s President Xi Jinping.
Rousseff said last week the hallmark of her first term is increased investments that would pave the way for more productivity should she win re-election in October. Gross domestic product in the first quarter expanded at half the pace of the previous three months as Brazil suffered the biggest contraction in investments in two years.
Accords signed today “consolidated China as a great partner in Brazil’s development,” Rousseff said after a signing ceremony alongside Xi.
Sany Heavy Industry Co Ltd will invest $300 million in a construction machinery plant and Chery Automobile Co. will build an assembly plant in Jacarei, Sao Paulo, Rousseff said. Each will generate 1,000 jobs, she said.
Separately, the Chinese Development Bank will finance a $100 million information technology project in the state of Tocantins carried out by Shenzen, China-based ZTE Corporation, according to a statement issued by Brazil’s presidency.
China has surpassed the U.S. as Brazil’s largest trading partner. Exports and imports totaled $83.3 billion last year and are projected to exceed $90 billion in 2014, according to a statement posted on the Brazilian presidency’s website.
Rousseff’s administration has sought to broaden its trade portfolio with China as the majority of its exports to the Asian nation are commodities.
“The challenge is to move toward adding value,” Marcos Jank, executive director of corporate affairs at food processor BRF SA, said today at a meeting of the Brazil-China Business Council.
Brazil and China will launch a satellite later this year and today signed an agreement for Centrais Eletricas Brasileiras SA and China Three Gorges Corporation to build an hydroelectric dam on the Tapajos River, Rousseff said.