This next piece of news is going to feel like a blow to all our guts because it’s going to hurt as much as it looks and sounds. Many of us probably remember when we used to refer to China as the “sleeping dragon” . Well we have some bad news, the dragon’s awake and has been heavily lurking for two and half years.
Fox News reports, in trade transactions, Brazil and China are reportedly ditching the U.S. dollar in favor of their own currencies.
After the deal is announced, China and Brazil will be able to exchange their currencies directly, effectively exchanging yuan for reais, rather than first converting them into dollars.
ApexBrasil, the Brazilian trade and investment promotion agency, says the new arrangement will “reduce costs” and “promote greater bilateral trade and facilitate investment.”
According to the latest figures, China accounts for more than a fifth of Brazil’s imports, followed by the United States. Brazilian exports to China account for more than a third of the country’s total exports.
Brazil’s top trading partner in 2009 was China, which overtook the United States. As a result of high-tension electricity transmission lines and oil extraction, Brazil is the largest recipient of Chinese investment in Latin America.
China and Brazil reached a preliminary agreement in January to ditch the U.S. dollar. The deal was announced after a high-level business event in Beijing.
Luiz da Silva, sworn in on January 1, has called for stronger relations with Beijing following an anti-China campaign and administration under his predecessor, Jair Bolsonaro.
The leftist president of Brazil had been scheduled to visit Beijing last weekend, but had to cancel due to pneumonia. It was planned that Lula would be accompanied on his first state visit by a delegation composed of ministers, senators, lawmakers, and hundreds of business people, including more than 100 from agriculture.
Fox Business host Stuart Varney gave an excellent take on China’s growing influence around the world successfully replacing the U.S.
There are no lies detected on that breakdown of China’s influence. It was only three years ago when America was still seen as the big wolf. However, it is jarring to see that it only took China two years to capitalize from our internal destruction. It’s almost like they had this all planned. You all know what we mean by this.
Let’s continue this conversation, in the comments below.