Brazil Fully Embraces China’s Belt and Road Initiative (BRI) with State Grid Auction
When President Lula met with Xi Jinping in Beijing on April 14, a new era in relations with China was celebrated by the Brazilian Government. The two presidents signed 15 cooperation agreements, marking the beginning of a change in relations between the two countries.
However, eight months later, Brazil appears to have fully embraced the Belt and Road Initiative (BRI) with a series of controversial initiatives. The BRI, introduced in 2013, has been the main foreign policy strategy of Beijing, using state-owned companies to finance infrastructure networks abroad based on its political and economic agenda.
In mid-December, the Chinese energy giant State Grid won the largest auction in the history of Brazil for the country’s transmission networks, with a total investment value of 21.7 billion reais. This move has sparked controversy and public debate, with accusations of favoritism towards State Grid.
The BRI has sparked criticism around the world, with many countries rejecting it or backing out at the last minute. China’s use of the BRI to expand its monopoly, create political dependence, and take advantage of resources of the countries that have adhered to the program, has been a cause for concern.
The auction victory by State Grid has raised questions about the influence of Chinese companies in Brazil’s infrastructure and the potential threat to the country’s national security. The use of technology and rules that reportedly favor Chinese companies has led to accusations of unfair practices in the auction.
As Brazil fully embraces the BRI through initiatives like the State Grid auction, concerns regarding the influence and dominance of China on the country’s infrastructure and national security continue to escalate.