Lula's China visit

[Marvin Gandall <marvgandall@xxxxxxxxxx>]

Brazilian president Lula?s state visit to China at the head of a huge business delegation, beginning today, is part of a strategic effort to connect the biggest emerging markets in the eastern and western hemispheres, says an article in the Financial Times. 

It is a development ?with potentially huge geopolitical implications?, writes the Times Latin American editor, Richard Lapper, based on ?solid economic fundamentals?. China?s insatiable economy needs Brazilian iron ore and other commodities, and Brazil is seeking Chinese capital to develop the infrastructure to bring them to market. 

The Asian power?s rapidly developing trade ties throughout Latin America poses a significant challenge for the US ?right in its own backyard?, says Lapper, especially at a time when American relations with Brazil, Argentina, and Venezuela have ?deteriorated?, raising the spectre of ?new power blocs in the region?. He suggests the US and other OECD countries will need to further invest and open their markets and borders to Latin American products and labour to compete with China. 

FT (sub only) article available on http://www.supportingfacts.com

Sorry for any cross posting.


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