China and Brazil boost trading ties with $1.4bn Embraer order
Brazilian aircraft manufacturer Embraer has landed $1.4bn worth of orders from Chinese airlines as part of a move to boost trade between the two economic giants.
The announcement includes firm orders for 20 aircrafts and an option to buy 15 more, and came as Brazil’s President Dilma Rouseff began her visit to China.
China Southern Airlines and Heibei Airlines each placed orders for 10 Embraer E-190 narrow-body planes which can seat up to 100 passengers.
China’s rapid economic growth has led to a surge in demand for air travel. Meanwhile Embraer has been looking to tap into this market.
China is Brazil’s biggest trading partner and foreign investor. Demand for Brazilian natural resources has been increasing in China to keep up the country’s rapid economic growth.
Meanwhile China has also made investments in Brazil, and its goods have been flooding the Brazilian markets. This has stoked fears in Brazil that China’s growth and investment are hurting domestic businesses.
China’s foreign ministry spokesman Hong Lei said these issues could be addressed by mutual cooperation.
“We believe, with the increasing growth of our respective capacity and through equal dialogue and consultation, relevant issues will be gradually and properly handled,” he said.