BRASILIA: At least once a week during her young presidency, Dilma Rousseff has met with trusted advisers to try to solve an intractable problem – China. Only a few months ago, Brazil and China seemed destined to enjoy one of the defining alliances of the early 21st century – two fast-growing emerging market economies seeking ever-greater opportunities for business together and standing side by side on key global issues such as trade negotiations. It's not quite working out that way. Rousseff's regular meetings are just one sign of how she is steering Brazil toward a more confrontational stance with China. She is trying to address what she sees as an increasingly lopsided relationship while also bringing Brazil's strategic alliances in line with her dream of turning it into a middle-class country by the end of the decade. The core problem is a torrent of Chinese imports that has quintupled in size since 2005, with disastrous effects for Brazilian manufacturers and the well-paying, highly skilled jobs that Rousseff is so focused on creating. While the weekly session of ministers and finance ministry officials is ostensibly about how to improve Brazil's competitiveness in global trade, “it's basically a China meeting,” said one high-level official who takes part. “Relations between the two countries are not hostile,” the official said. “But we are going to take measures to protect ourselves ... and push for a more equal relationship.” In the short term, senior government sources say that will mean more targeted tariffs on manufactured goods coming from China and tighter supervision by customs officials, as well as more anti-dumping complaints against Beijing. New restrictions on foreign mining companies are also likely, officials say, reflecting concerns that China wants to consolidate its grip on Brazil's commodities wealth while offering insufficient access to its own market. In a break from her predecessor, Luiz Inacio Lula da Silva, Rousseff will push for a stronger yuan currency and more access to the Chinese market for Brazilian companies like airplane maker Embraer when she visits China in April. In the long run, Brazil and China are likely to retain relatively warm ties and continue to expand bilateral trade. Yet the shift evolving since Rousseff took office on Jan. 1 could affect everything from Brazil's relationship with the United States to the future of so-called “south-south” ties among emerging market countries.
