Opening Remarks
First, I’d like to express my sincere thanks to the Ministry of Commerce of the People’s Republic of China and Sino-Brazil Entrepreneur Committee for their efforts to facilitate the opening of the China-Brazil Economic Cooperation Symposium!
The Chairman Lula often talks about economic changes all over the world, and China is undoubtedly the most appropriate place to discuss these changes.
This morning, we will have a further mutual understanding of the economic strength and productivity of the two countries, in order to enhance our economic investment and promote trade development.
Later, Mr. Alessandro Teixeira, Chairman of the Ministry of Exports of the Federative Republic of Brazil will give us a detailed speech on the current economic forms in Brazil. However, I hope all of you distinguished guests, especially the Chinese partners will pay attention to the following points.
Space for Increase
Brazil developed rapidly in recent years, but compared to nations with equal economic strength, its economy has become more conservative. As many countries have invested in Brazil and products made in Brazil have been sold in the international market, export trade of Brazil still has large space for development.
In 2006, the trade volume (nearly US$230 billion) accounted for only 25% of Brazil’s GDP, which took a proportion of 58%, 64%, 69% and 64% of GDP in Mexico, Chile, Korea and China respectively.
Multinationals in Brazil are very few. Although many Brazilian enterprises have started to invest in securities market to enter markets of other countries. A majority of big Brazilian enterprises are in the primary phase of overall production internationalization and product commercialization.
Internationalization of enterprises can decrease operation costs and largely increase profit, which is increasingly becoming a vital strategy for enterprises in the highly globalized world.
Data of Brazilian Enterprises
According to latest statistics of Central Bank of Brazil (2005), the direct investment of Brazil in 2005 reached US$79.3 billion, increasing by 45% over the same period of 2003. In 2006, Brazil has invested US$28 billion in other countries, exceeding the foreign investment in Brazil (US$18 billion) for the first time.
A total of 1,637 Brazilian holding companies or non-holding companies (taking around 10% shares) claimed that they have invested in other countries by the year 2005.
Internationalization of Brazilian Enterprises
The internationalization of enterprises can bring constant foreign relations which can not be foreseen, for example, some sudden or insurmountable liaison obstacles.
These Brazilian enterprises can export their products when domestic market shrinks. Thanks to Brazil’s commercial policies to encourage export, these enterprises have made great efforts to increase foreign trade in recent years.
Internationalization should be regarded as a basic survival means in existing domestic market for enterprises, rather than an exploration into overseas new market.
Investment in foreign countries is one way to guarantee sustainable operation of Brazilian enterprises. Currently, Some Brazilian enterprises have invested and done business in China, such as Embraer, CVRD (Companhia Vale do Rio Doce) and Embraco. However, we should realize that they need to give play to their potential in other places.
We should prosper the economic and trade cooperation between China and Brazil in an all-around way.
Besides foreign trade and investment, Sino-Brazil communication at a deeper level includes developing new markets, establishing business foundation, building and distributing technique aid network, and establishing production bases in Brazil.
Emerging of Foreign Brazilian Enterprises
Though multinationals play an increasingly important role in global economy, the formulation of detailed policy to promote the internationalization of state-owned enterprises in Latin America is in the very primary phase.
In Brazil, until recently, those successfully internationalized state-owned enterprises are not results of the well-constituted supportive policies of the government.
More and more multinationals stepped into the global market, fiercely competing with multinationals from developed countries in all industries.
Some of these enterprises have taken part in the Sino-Brazil Entrepreneur Committee. They are challenging the general notion that these companies lack innovative capability and merely rely on advanced techniques of developed countries.
The Brazilian government has been strengthening its administrative measures by all means to support the internationalization of its enterprises. For example, the government provides financing services through our major investment bank --- BNDES.
In July 2005, BNDES, possessing US$30 billion, established financing channels for state-owned enterprises to directly invest in foreign countries.    
Petrobras, CVRD (Companhia Vale do Rio Doce) and Embraco have set examples of successful operation in the global market where technology competes fiercely. Brazilian steel company Gerdau Group, holding companies of the largest Brazilian beef exporter Friboi and those project contracting companies also play an important role. According to Antoine van Agtmael, a Dutch writer and author of World Market, more and more Brazilian, Chinese and Indian companies are grow evenly-matched rivals of enterprises from developed countries, and exceeded them for many times.
However, we still need to create favorable conditions for many other state-owned enterprises, so that competitive products and techniques can enter global markets among which China is one of the most important.
Medium and small-sized enterprises also need support urgently to enter into the global markets. Most of them have considerable potential, and contribute to national revenue.
Globalization has made a notable contribution to the export increase of Brazil during 2002 to 2007, because it expanded the capital and service market. More importantly, with depreciation of the US dollar, Brazilian enterprises have entered into both new and traditional markets through great efforts.
Brazil-China Cooperation
We give priority to the enhancement of cooperation relationship with China and promise that this is part of the development strategy of our country.
Brail and China established diplomatic relations 37 years ago.
We entered into a new era of corporation in 2003. I have seen that the Lula Government has expressed its wish to establish strategic relationship with the People’s Republish of China for many times, and now we reiterate our hope here again.  
Concluding Remarks
The increasingly close cooperation of China and Brazil is based on the similarities and complementarities in society and economy.
Both Brazil and China have common tasks in the following aspects: combating against hanger and eliminating poverty, ensuring people’s health, distribute the revenue properly, increasing employment and national revenue. All of these are based on economic increase.
I’m confident that, we will find more effective forms for the existing favorable investment and business relationship through this symposium.

Thanks a lot!