Brazil on October 29, 2024, under the leadership of President Lula Da Silva, decides to exclude itself from China’s mega developmental Belt and Road Initiative (BRI). The country became second after India in the BRICS Block to not endorse China’s mega project. Brazil, now, seeks alternative ways to collaborate with Chinese investors. This decision came as a surprise to China after the country’s president Xi Jinping visited Brasilia on November 20. The centrepiece of the Chinese president’s visit were the plans to make Brazil an amiable partner.
With regard to this, the Brazilian newspaper O Globo reported, “Brazil wants to take the relationship with China to the next level without having to sign an accession contract.” This statement clearly explains the Brazilian reluctance to join hands with China. Now, how will the new decision by Brazil affect geopolitics? And secondly, how is India reacting to this decision?
BRI Under Scrutiny By Countries
Brazil’s decision to not be part of the Belt and Road initiative, according to popular opinion in Brazil, will not bring any benefit to the country in the short term and can also strain relations with the new US president, Donald Trump. However, this decision rang merry bells in India, which was the first country that protested against China for building the US dollar 60 billion China Pakistan Economic Corridor (CPEC). This flagship project of BRI cuts through Pakistan occupied Kashmir or POK, and violates its sovereignty.
Alongside, India has been consistently vocal about criticism of the BRI project, stating that they should be based on globally recognised norms, rule of law, transparency, financial sustainability, good governance and climate change mitigation. Indian diplomats have also stayed away from all high profile meetings for BRI in Beijing for a few years. India has raised opposition to BRI over two major platforms it shares with China: BRICS and Shanghai Cooperation Organisation or SCO. Not only from India, China has received criticism for its BRI project in smaller countries like Sri Lanka, especially for its takeover of the Humbantota for a period of 99 years on lease. The takeover is a debt swap, turned into a dead trap, resulting in the financial crisis in the island nation.
China’s mega developmental project has also not been supported by one of the most powerful players in geopolitics, USA. US representative Katherine Tai urged Brazil to view proposals to join BRI through an ‘objective lens’ and keeping in mind the ‘risk management’, before Brazil was to make any decision. Responding to the same, the Chinese embassy in Brasilia called Katherine’s remark as ‘irresponsible’ and ‘disrespectful’.
India-Brazil Relations
Supporting Brazil’s decision to remain outside China’s Belt and Road initiative, India has moved forward to throw its weight behind Brazil at the coming G20 meeting on issues related to debt, climate and gender.
“We will do our best to assist and support Brazil as much like Brazil has supported us. We will do our best to bring the emerging market on board.” , says Amitabh Kant, India’s G20 Sherpa. According to Kant, the top three priorities of Brazilian presidency are: fighting against hunger and poverty, sustainable development and energy transition, and good global governance. Along with this, New Delhi is pushing for a global alliance against hunger and poverty, progress on climate finance and forward looking general reforms.
The G20 summit will push India as the leader of the global South to address all the concerns of the region. Brazil’s decision to not form an alliance with China adds up to the country’s diplomatic strength in Southeast Asia.
The G20 summit consists of developed and emerging economies which will next meet in Rio de Janeiro on November 18-19, along with the African Union and European Union amidst growing tension around Russia-Ukraine war. Also the situation in the West will be discussed . Prime Minister Narendra Modi will also attend this summit.
In this time’s summit, India is to come up with bold reforms on multilateral trading systems, including WTO, to help push for sustainable economic growth and also trigger economic resurgence to form a more inclusive, prosperous and interconnected world.
