Brazil and China sign agreements worth USD7.5 billion

Brazil and China have boosted their commercial partnership through credit lines worth USD7.5 billion for Brazilian mining company vale and the acquisition of 60 passenger aircraft from Brazilian aeronautical manufacturer Embraer.
Along with a number of energy, finance and industrial agreements signed Thursday in Brasilia in the presence of presidents Xi Jinping and Dilma Rousseff, the two nations also agreed to join forces to build railways.
Trade between Brazil and China rose sharply from US$3.2 billion in 2002 to US$83.3 billion in 2013 – iron ore, soy and oil are the biggest Brazilian exports – and China is now Brazil’s larges trading partner.
Xi visited Brasilia after the BRICS conference that set up a development bank with capital of US$100 billion and which will be headquartered in Shanghai, China, and will finance infrastructure projects.
China’s Eximbank provided a credit line of US$5 billion for Vale to buy ships and equipment from Chinese companies and the Bank of China opened up a credit line of US$2.5 billion for Vale to buy Chinese equipment and services.
The Construction Bank of China completed the acquisition of 72 percent of Brazilian bank Banco Industrial e Comercial S.A. for 1.62 billion reals agreed in October 2013.
Embraer will sell 40 aircraft to Tianjin Airlines, half of which will be a modernized version of the E-190 E2 model whilst the Industrial and Commercial Bank of China will buy 20 aircraft under the terms of an agreement signed in 2012.
State Grid Corporation of China signed an agreement with Brazilian power company Eletrobras to build high voltage transmission lines for the Belo Monte hydroelectric facility, and China Three Gorges Corporation signed an agreement with Brazilian state companies to take part in a dam-building project on the Tapajós River, which crosses the Amazon basin. MDT/Macauhub