Between the eagle and the dragon: Brazil’s dangerous dependence on China

Brazilian President Luiz Inacio Lula da Silva has intensified his confrontation with the U.S. and his reliance on Communist China — a strategy that could seriously jeopardize Brazil’s economy, security, and sovereignty.

In recent days, Lula has sharpened his rhetoric against the U.S. and called Secretary of State Marco Rubio a “frustrated Latin American” and a “mortal enemy.” The leftist leader’s response follows the U.S. announcement of 25 percent tariffs due to unfair trade practices and the designation of the Brazilian criminal gangs Primeiro Comando da Capital and Comando Vermelho as terrorist organizations.

Lula has unleashed an undiplomatic and unfiltered rhetoric that is not good for either country. Brazil is one of the world’s largest economies, and the U.S. is its second-most important trading partner. In 2023, U.S. exports of goods and services to Brazil totaled $37.9 billion, while imports from Brazil amounted to $36.9 billion, a total trade value of $74.8 billion that year.

In his efforts to distance himself from the dollar and the U.S., Lula has increased his dependence on China. This week, Brazil said it would soon announce the issuance of so-called panda bonds, using yuan as currency. Brazil already sells most of its iron ore, soybeans and oil to Beijing, but now it also wants to borrow using Chinese yuan, limiting its financial freedom to sell to........

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