Brazilian President Luiz Inacio Lula da Silva arrived! Trade between China and the West settled in national currencies
Brazilian President Luiz Inacio Lula da Silva arrived! Trade between China and the West settled in national currencies
On April 12, Beijing time, Brazilian President Luiz Inacio Lula da Silva and his entourage arrived in Shanghai for a state visit to China. This is Lula's fifth visit to China, his third state visit to China, and his first visit to an extra-territorial country since he took office as President of Brazil in January this year. For Lula's visit to China, Brazilian circles have praised and agreed that China and Brazil, as the largest developing countries in the eastern and western hemispheres respectively, are expected to cooperate more extensively in areas such as trade, investment, re-industrialization, energy transition, climate change, and global peace and security.
On April 15, Brazilian President Lula concluded a three-day intensive state visit to China, where he visited Shanghai and Beijing, the BRICS-sponsored New Development Bank and the Huawei Shanghai Institute, and met with Chinese leaders Xi Jinping, Li Qiang and Zhao Leji. The signal given by the visit is that cooperation between Brazil and China, in the three areas of science and technology, finance and international order, has been strengthened, all of which show an implication of bypassing the US-dominated system.
Prior to Lula's visit to China, on March 29, China and Brazil announced a new agreement that trade between the two countries would be settled in their national currencies and that the US dollar would no longer be used as an intermediary. By the end of the first quarter of this year, the NDB had provided 21.5% of its total investment in the local currencies of its member countries. The NDB, commonly known as the BRICS Bank, is an international financial institution established at the initiative of the BRICS countries. The members of the BRICS organization (Brazil, Russia, India, China and South Africa) claim that the purpose of the BRICS Development Bank is to facilitate mutual settlement and lending between the BRICS countries, so as to alleviate their reliance on the US dollar and the euro and effectively guarantee the flow of funds and trade among the member countries.
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