Brazil behind the scenes of a technological war between China and the USA

by Andrea
0 comments

The recent sale of a Brazilian mining company by China placed Brazil at the center of a technological dispute between the two largest global powers: the United States and China. Taboca, located in the Amazon and the largest producer of refined tin in Brazil, was purchased by Chinese state-owned China Nonferrous Metal Mining (CNMC) for US$340 million (approximately R$2 billion).

Tin, one of the materials extracted at the mine, is an essential input for the manufacture of semiconductors, strategic items in the race for global technological leadership. Although the deal does not pose a direct threat to Brazil’s national security, analysts express concern about the country’s strategic image on the global stage following the sale.

The dispute between China and the USA is not limited to the economic sector, extending to the technological, military and geopolitical domain. In recent years, Beijing has intensified the search for strategic minerals in regions such as Latin America, while Washington has tightened sanctions against Chinese companies linked to semiconductors and advanced technology.

“With restrictions imposed by the United States on Chinese semiconductors and the resulting reduction in dependence on American industry, China has intensified its global efforts to secure access to critical minerals and rare earths. The acquisition is a reflection of this strategy, especially in a context in which Latin America has become an area of ​​growing Chinese influence, favored by left-wing governments that often neglect issues of sovereignty”, analyzes Cezar Roedel, master in international relations from the Federal University of Rio Grande do Sul (UFRGS) .

The threat to Chinese sovereignty and influence

The expert points out that the purchase of Taboca reflects the growing Chinese presence in Latin America, a region that he describes as a “playground for China”. “Latin America has opened its doors, often negligently, allowing Beijing to acquire strategic assets such as mining companies of great importance to the global market,” he said.

In addition to tin, Taboca mines niobium and tantalum, two critical elements for the production of components such as batteries, satellites, capacitors and rockets. Although the sale does not represent an immediate threat to national security, experts warn of the long-term strategic effects.

The presence of Chinese companies in sensitive sectors raises questions about Brazil’s sovereignty and foreign policy. “The country runs the risk of becoming a mere chessboard in a technological war, losing protagonism and leadership in strategic sectors”, warns Roedel.

US shows concern about Chinese movement

The US, which has already adopted severe measures against the Chinese technology industry, views moves such as the purchase of Taboca with concern. In October, President Joe Biden banned US investments in Chinese companies operating in the semiconductor, artificial intelligence and quantum computing sectors. The measures aim to prevent American technologies from being used by China to modernize its armed forces.

In addition, the US has sanctioned dozens of Chinese technology companies and accused Beijing of providing indirect military support to Russia in the war against Ukraine. The rivalry between the two countries, described as a “new Cold War”, puts pressure on smaller nations, such as Brazil, to balance trade relations with the two powers.

Brazil in the middle of the dispute

China and the United States face an economic and geopolitical battle that has been going on for years and is unlikely to be resolved in the short term. According to analysts consulted by People’s Gazettethis rivalry, which also extended to the technological field, tends to intensify with the return of Donald Trump to the White House. For Cezar Roedel, this emerging global scenario requires a more careful analysis by the Brazilian government.

“A closer look at strategic resource reserves is needed, as well as a deeper understanding of the current technological cold war between China and the United States, which will likely become even more complex under the Trump administration,” says Roedel.

He emphasizes that Brazil must initiate in-depth debates about its strategic resources and how they fit into the international situation, to avoid two scenarios:

  • becoming dependent on China for rare minerals despite having large reserves; and
  • be reduced to a simple pawn in an even deeper technological war.

“In both cases, Brazil would lose its prominence and technological leadership”, he concludes.

Brazil and the geopolitics of the BRICS

Under the government of Luiz Inácio Lula da Silva, Brazil has strengthened its ties with China, a member of the Brics bloc, which seeks to reconfigure the global economic order. Despite resisting official adherence to the New Silk Road – the ambitious infrastructure project led by Beijing –, Brazil has shown signs of alignment with Chinese foreign policy, which generates criticism from analysts.

Professor Elton Gomes, from the Federal University of Piauí (UFPI), believes that the sale of Taboca reinforces this perception. “Brazil has expanded its economic relationship with China on sensitive issues, which can be interpreted as a strategic alignment with the Asian giant”, he states.

For Gomes, the Brazilian government must seek a balance between commercial interests and traditional alliances with Western countries. “The pressure for a clear position in an increasingly polarized world only tends to grow, and this puts Brazil in a delicate position on the international stage”, he concludes.

You may also like

Our Company

News USA and Northern BC: current events, analysis, and key topics of the day. Stay informed about the most important news and events in the region

Latest News

@2024 – All Right Reserved LNG in Northern BC