China has made another big move without much fanfare! The US is probably feeling a bit frustrated; the tariff war has inadvertently been a huge help to us! While Trump is still mired in the trade war, destroying bridges and roads, China has done something significant with three Latin American countries. On April 19th, US media noticed that China is restarting a large-scale railway project in South America with these three countries. This major project is the "Two-Ocean Railway" plan.

What kind of project is this? It is a major railway project connecting the coastal port of Rio de Janeiro state in Brazil with the Port of Chancay in Peru. If this project is completed, the direct benefit will be that Brazil's soybeans and minerals will not need to pass through the Panama Canal but will instead be transported directly by rail to the Port of Chancay and then transferred to China. The US media stated that if the project is implemented, it will change the logistics map of South America and accelerate regional and extra-regional trade.

In fact, this "Two-Ocean Railway" plan has already been discussed between China and countries like Brazil. However, due to issues related to funding, environmental concerns, and pressure from the US, the project was once stalled. Why does Brazil show renewed interest in this project this time? An important catalyst is the trade war initiated by the US. After the US started the trade war, many orders from China were transferred to Brazil, and Brazil also wants to seize the opportunity to expand its economic and trade relations with China. However, infrastructure problems have become a significant bottleneck for Sino-Brazilian trade.

Therefore, with such great opportunities ahead, Brazil also realizes that upgrading infrastructure is inevitable. At present, our delegation has met with representatives from the states of Mato Grosso, Goias, Rondonia, and Acre in Brazil. Undoubtedly, this also means that the project has entered the early stages of initiation. Clearly, the US never expected that starting the trade war would actually promote closer cooperation between China and Brazil. A non-US international logistics channel is likely to be accelerated, which undoubtedly makes the US very frustrated.

Original article: https://www.toutiao.com/article/1829972270071049/

Disclaimer: The article only represents the views of the author.