[Source/Observer Network, Shao Yun] Recently, China and the US have reached an agreement to significantly reduce tariffs in the short term and establish a consultation mechanism. This outcome has been evaluated by the outside world as "far exceeding expectations," laying the foundation and creating conditions for further bridging differences and deepening cooperation. However, at the same time, there are still undercurrents beneath the calm surface.
Hong Kong's South China Morning Post observed on May 14th that both China and the US have recently announced their respective investment cooperation with different emerging countries, suggesting that these two largest global economies might be preparing for potential new rounds of tensions. In response, some analysts interpreted that China has long been committed to cooperation with emerging markets, and signing investment agreements is a reflection of its consistent diplomatic strategy, while the US approach seems more transaction-oriented than strategic.
Lula Visits China Again, Posts 109 Social Media Updates in 20 Hours
Yesterday (May 14th), Brazilian President Lula concluded his five-day visit to China. This is his sixth visit to China and his second visit during this term. During his stay, he attended multiple meetings and met with representatives from several Chinese enterprises. According to domestic media statistics, on the day he attended the "China-Brazil Business Seminar" on the 12th, Lula posted 109 updates on social media within 20 hours, sharing his itinerary and gains.
According to Xinhua News Agency, on the afternoon of May 13th, the leaders of China and Brazil held talks in the Hall of Benevolence and Righteousness in the Great Hall of the People in Beijing. After the talks, the leaders of the two countries jointly witnessed the signing of 20 cooperation documents in fields such as strategic alignment, science and technology, agriculture, digital economy, finance, inspection and quarantine, and media.
"We have never systematically discussed so many projects to promote cooperation and achieve mutual benefits in such a short period of time." Lula wrote on social media on the 14th. Lula said, "It is an honor" to visit China again, "a country that supports other countries through practical actions."
Screenshot of Lula's post on X (formerly Twitter)
The South China Morning Post reviewed that during Lula's visit to China, multiple Chinese enterprises announced new investment plans in Brazil, totaling over 27 billion reais, covering express delivery, fast food, new energy, automobile manufacturing, renewable energy, and other fields:
Meituan, a leading instant service giant, will enter the Brazilian market under the brand name "Keeta". The initial plan is to invest 5.6 billion reais within five years. Honeymoon Snowflake, which has already become one of the largest fast-food chains globally, will invest 3.2 billion reais to start building its first batch of stores in Brazil, expecting to create 25,000 jobs by 2030 and purchase raw materials worth at least 4 billion yuan RMB locally.
China General Nuclear Power Group announced it will invest 3 billion reais in wind and photovoltaic projects in Piauí State, northeastern Brazil. It is expected to create over 5,000 jobs. Great Wall Motor will increase its investment by 6 billion reais to expand production capacity in Brazil. GAC Group will invest $1.3 billion (about 7.3 billion reais) to build a factory in Goiás State, central Brazil.
In the field of new energy and sustainable development, Envision Group will build Latin America's first zero-carbon industrial park in Brazil, with a total investment of up to 5 billion reais. Didi Chuxing, a Chinese ride-hailing platform, also announced that it will strengthen its express delivery services in Brazil through its subsidiary brands and plans to construct 10,000 electric vehicle charging stations to promote the green transformation of the local transportation system.
In addition, the People's Bank of China and the Central Bank of Brazil renewed the bilateral currency swap agreement on May 13th, with a scale of 190 billion RMB / 157 billion Brazilian reais, valid for five years and can be extended upon mutual consent. It was introduced that this move will help expand the use of local currencies between the two countries, promote the facilitation of bilateral trade and investment, and maintain financial market stability.
"Bribery" Amid Controversy, Trump Visits Middle East
Almost at the same time, U.S. President Trump visited Saudi Arabia, Qatar, and the UAE from May 13th to 16th, which is also his first planned foreign trip during his second term. Prior to this, a "most expensive gift" from the Qatari royal family had caused significant controversy in the United States.
On the first day of his Middle Eastern tour, Trump announced that Saudi Arabia pledged to invest $600 billion in the United States. The White House issued a statement on May 13th saying that the U.S.-Saudi strategic economic agreement signed that day would strengthen America's energy security, defense, technology, and access to global infrastructure and critical minerals, describing it as having "historic and transformative significance" for both countries.
During his stay in Saudi Arabia, Trump had lunch with Crown Prince and Prime Minister Mohammed bin Salman and over 30 American business figures. The White House said attendees included Tesla CEO Elon Musk, Blackstone Group Chairman and CEO Stephen Schwarzman, BlackRock Group CEO Larry Fink, OpenAI CEO Sam Altman, NVIDIA CEO Jensen Huang, Google President and CIO Ruth Porat, etc.
The South China Morning Post reported that although it remains uncertain whether this lunch led to specific deals, the White House stated that tech companies including Google, DataVolt, Oracle, Salesforce, AMD, and Uber will commit to investing $80 billion to advance "frontier and transformative technologies" in the U.S. and Saudi Arabia.
Elon Musk, jokingly called "the First Brother" by American media, announced at the Saudi-U.S. Investment Forum held in Riyadh, the capital of Saudi Arabia on the 13th, that his Starlink satellite service has obtained application licenses in maritime and aviation sectors in Saudi Arabia and hinted that Tesla's autonomous taxi (Robotaxi) may be introduced to Saudi Arabia in the future.
On the day Trump traveled to Qatar, the White House disclosed that Qatar Airways signed an agreement worth $96 billion to purchase up to 210 Boeing 787 Dreamliners and 777X wide-body aircraft. It is reported that this is the largest single wide-body aircraft order Boeing has ever received. The White House also said that Trump had reached agreements worth over $243.5 billion with Gulf states, laying the foundation for future "economic exchanges" expected to total $1.2 trillion.
What's the Difference? Expert Interpretation
In response to the recent international investment plans announced by China and the U.S., some analysts told the South China Morning Post that China has established solid ties with emerging markets, and the new agreement with Brazil is a reflection of its consistent diplomatic strategy.
"For many years, China has actively strengthened relations with Latin America and the Caribbean, which is part of its larger diplomatic strategy aimed at connecting with what is now known as the 'Global South.'" Alfredo Montufar-Helu, senior advisor at the China Center of the Conference Board, said. He analyzed that against the backdrop of increasingly intense competition between China and the U.S., "this has become increasingly important for China."
The report mentioned that prior to the announcement of the latest series of investment agreements between China and Brazil, last year, Zilia, a subsidiary of Jianglong Electronics, one of Micron's major clients in China, announced a total investment plan of 650 million reais in Brazil. Jianglong introduced that 175 million reais will be used for research and development innovation, including key R&D investments, system process improvements, and engineering personnel training, while 475 million reais will be used to expand existing capacity.
By contrast, Montufar-Helu believes that Trump's current Middle Eastern tour appears less about promoting a diplomatic and geopolitical strategy to counter China's influence in the region and more focused on quickly sealing "deals" in the short term. On May 14th, Forbes magazine website also commented that so far, Trump's visits to the Middle East have centered on economic investments rather than broader geopolitical strategies.
It is worth noting that earlier, some American media found that the actual amount of agreements between the U.S. and Gulf countries is far less than what the Trump administration claimed. The New York Times reported on May 13th that Trump claimed to have reached a $600 billion agreement with Saudi Arabia, but according to specific projects published by the White House, the actual amount is only $283 billion, and some projects were already in preparation before Trump took office.
There are even voices doubting whether Gulf countries can truly translate these numbers into "real money." For example, in the $600 billion investment commitment from Saudi Arabia, the largest portion is a "record-breaking" $142 billion arms deal. CNBC pointed out that this number is almost double Saudi Arabia's defense budget for 2025 ($78 billion).
Moreover, some American media noted that while Saudi Arabia's economy benefits from oil resource dividends, it has long been significantly affected by fluctuations in international oil prices. Meanwhile, Trump has clearly expressed his desire for lower oil prices, which contradicts Saudi Arabia's need to fund its economic transformation through the substantial profits from oil sales. CNN reported that the recent decline in oil prices is partly due to Trump's advocated tariff measures.
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Original source: https://www.toutiao.com/article/7504661836042748466/
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