Luiz Inacio Lula da Silva, the former president of Brazil, is making strides to strengthen trade ties between Brazil and China. Lula recently reunited with the Batista brothers, Wesley and Joesley Batista, who are meat billionaires and the founders of JBS, the world's largest meat producer. The meeting took place at a JBS factory in Campo Grande, Brazil, and is part of Lula's efforts to increase agricultural exports to China and replicate the commodities-fueled growth of the early 2000s. Lula's goal is to boost Brazil's trade balance by $2 billion over the next year.
The Batista brothers were previously involved in a corruption scandal that implicated thousands of politicians, including Lula himself. However, they have recently returned to prominence in Brazil and were named to the JBS board. JBS plans to invest $29 million to double the daily production capacity of the Campo Grande facility. It remains uncertain whether Lula's government will support JBS's push to list its shares in the US, as the Brazilian national development bank has not yet publicly stated its position on the matter.
Lula's efforts to strengthen trade ties with China and increase agricultural exports align with his broader strategy of intervening in Brazil's largest companies, including Petrobras and Eletrobras. Lula has been advocating for greater state control and criticizing privatization efforts, which is seen as a way to gain political influence and appeal to his base ahead of the 2022 presidential election. However, critics argue that Lula's interventions could harm the economy and deter foreign investment. This move comes as Lula seeks to regain political power and challenge President Jair Bolsonaro's administration.
The meeting between Lula and the Batista brothers is seen as a significant development in Brazil-China trade relations, as it highlights Lula's efforts to strengthen ties with China and boost agricultural exports. A total of 38 Brazilian plants recently received authorization to export products to China, further bolstering the trade relationship between the two countries. The increased trade with China is expected to have a positive impact on Brazil's economy and trade balance.
Overall, Lula's recent activities demonstrate his multifaceted approach to politics and economics, as he navigates the complexities of Brazil-China trade ties while also intervening in domestic companies to gain political influence. The outcome of these efforts remains to be seen, as they continue to shape Brazil's economic and political landscape. [fadb8874]