BRASILIA (Dow Jones) — Brazilian and Chinese authorities in talks Monday agreed to combat protectionism and seek ways to eliminate distortions in trade that have blocked expanded business between the two emerging-market nations.
Brazilian Vice President Michel Temer and Chinese Vice Premier Wang Qishan said the two sides held satisfactory discussions in a series of areas, including cooperation in trade, finance, agriculture, mining, energy, aerospace, and science and technology.
Qishan was in the Brazilian capital Monday with a delegation of 14 Chinese officials for high-level talks with local government and business leaders in preparation for a visit from Chinese President Hu Jintao to Brazil later this year.
In a brief declaration following their meetings, Qishan said China was committed to the progressive increase of “imports of Brazilian manufactured goods,” meeting a key demand from Brazilian counterparts to boost value-added exports to the giant Asian economy. Temer said that Brazil requested that China adhere to “voluntary dimensioning” exports to Brazil. However, neither of the authorities indicated how Brazil has sought to increase its sales of manufactured products to China, as a large percentage of its sales to the Asian country are basic food commodities and raw materials when that action would occur.
Temer said that Brazil sought to increase sales in China of regional aircraft from Brazil’s Embraer (ERJ) as well as sales of buses from manufacturer Marco Polo (POMO4.BR).
China has been Brazil’s largest single trading partner since 2009, doing $77 billion in trade in 2011. Brazil ran a trade surplus with China of $11.5 billion, equivalent to 38% of Brazil’s entire foreign-trade surplus, last year. Brazil has sought to increase its sales of manufactured products to China, as a large percentage of its sales to the Asian country are basic food commodities and raw materials.
On the delicate matter of foreign exchange, the officials avoided any direct public mention of conflicting viewpoints, and pledged to advance a previously mentioned plan to seek direct trade of Brazilian and Chinese goods using their respective local currencies instead of the dollar. Brazil recently introduced discussion of foreign exchange and currency wars at panel discussion of the World Trade Organization.
Authorities from Brazil and China agreed to work closely at upcoming meetings of the BRICS emerging market nations and the Group of 20 largest economies to help ensure international economic stability.
Qishan said the resolution of recent international financial turbulence was among top priorities during the latest talks. However, the countries didn’t officially announce any measures to contribute financial resources to nations with ailing economies.