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In 2009, China has become Brazil's biggest commercial partner, taking the place of the US - however,http://www.ghdhairstream.co.uk/, Brazil is not China's biggest commercial partner yet. The trade deficit in 2012, as shown by the China-Brazil Business Council,chanel handbags, hit $6.98 billion. That means it is time for Brazilian companies to forge a stronger presence in China to help even the trade balance and provide Chinese customers with goods and resources that are necessary in the changing Chinese economy. Some initial steps - in the form of tax reductions and trade agreements - aimed at narrowing the trade deficit have already been introduced by both governments. But in my opinion, the most important measure came at the last BRICS Summit in Durban, with the creation of a $50 billion development bank fund for all five countries and a currency swap agreement between China and Brazil, with the latter expected to come into effect from the third quarter of 2013. These moves were a direct challenge to the World Bank, which is sometimes viewed as being biased by the BRICS nations, and a clear sign that the once-developing economies might be getting stronger and willing to follow their own path. Even with China's GDP being much bigger than Brazil's, there are several ways that the trade gap can be filled. The Chinese economy is not growing at the same pace it has in the past, and many factors point to the conclusion that the slowdown will not change any time soon, if ever. Such views were recently reinforced by a paper prepared by the Development Research Center of the State Council,true religion perfume, entitled "Ten-year Outlook: Decline of Potential Growth Rate and Start of a New Phase of Growth". Thus domestic consumption will be generating a huge demand for goods coming from abroad - as predicted in the research center's document, fixed investment will account for only 42 percent of China's GDP growth in 2020, down from 49 percent in 2011. Meanwhile consumption is expected to account for 56 percent of GDP growth by 2020, up from 48 percent in 2011, the report also mentioned.Against this backdrop, there are bound to be many goods and services that Chinese companies won't be able to produce on their own. This will create many great opportunities for Brazilian companies, especially in sectors such as education, clean energy,celine bag, software and food. Chinese consumers have changed dramatically and are now among the most demanding in the world when it comes to quality and safety. China's astonishing economic growth over the last 30 years means that now, despite social and regional inequalities, there is an abundance of capital in the market and evident shortages of many products and services. This is clear evidence of a plethora of opportunities that can help both China and Brazil grow stronger and more independent of the developed world.With the creation of the BRICS Bank, the easing of trade barriers and the creation of a currency swap agreement which will help stabilize currency fluctuations, the filling of the trade deficit between China and Brazil will come as these countries establish their places in the global economy as independent players. The author is an engineer and business consultant.
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