The two sides will set up a clearing house to facilitate settlements without using the US dollar and loans in local currencies. This will help companies make transactions easier and cheaper. Settlement in local currencies will also minimize financial risks in trade transactions due to fluctuations in the dollar’s exchange rate.
Brazil is China’s ninth largest trading partner, and China is Brazil’s largest trading partner. China overtook the US as Brazil’s top trading partner in 2009. According to statistics from China’s General Administration of Customs, bilateral trade reached $171.49 billion in 2022, an increase of 4.9 % from the previous year. Brazil’s exports to China totaled $89.43 billion in 2022, according to official Brazilian data, or 26.8 % of its total exports.