Brazil’s Consideration of China’s Belt and Road Initiative (BRI)

• Brazil’s government may not join China’s Belt and Road Initiative (BRI), making it the second member of the BRICS grouping.

• The decision was made in an interview by Celso Amorim, Chief Adviser on Foreign Policy to Brazilian President Luiz Inacio Lula Da Silva.

• Brazil prefers to explore “synergy” in various nationally determined infrastructure projects, not signing an “accession contract” with China.

• The partnership would involve projects defined and decided by Brazil.

• Brazil does not reject the BRI outright or forswear Chinese funding for a number of projects, mainly on infrastructure, but also in other areas like solar energy, hybrid or electric cars.

• Brazil is one of only four South American countries not to join the Chinese initiative.

• Brazil is studying the benefits of joining the BRI, but the decision indicates that the gains do not outweigh the risks.

• India’s decision to stay out of the BRI in May 2017 was more forthright, citing three issues: the corridor disregards sovereignty and territorial integrity of nations, it would push smaller economies into debt traps and environmental hazards, and there was a lack of transparency.

• There is an underlying concern about growing dependence in the CELAC (Community of Latin American and Caribbean States) region on Chinese investment.

• The Belt and Road Initiative is no longer the “project of the century” it was once touted as.

• The BRI’s charms have dimmed due to China’s slowing economy, Beijing’s unwillingness to be as generous with its loans, and discomfort in many countries over the terms for the loans.

• The U.S.’s heavy lobbying against the BRI has also had some effect.