Brazilian mining giant confident in future of Chinese market

Brazilian multinational corporation Vale S.A. announced that it would officially kick off the operation of the Sol do Cerrado solar farm in Jaiba, Brazil, on Nov. 17, 2022.

The solar farm is one of the largest solar projects in Latin America. Its solar modules and spare parts were supplied by Chinese solar panel manufacturer JinkoSolar.

Before this, the Brazilian company's second 100-percent electric, battery-powered locomotive had been put into use, and this locomotive was also manufactured by a Chinese enterprise - CRRC Zhuzhou Electric Locomotive Co., Ltd.

A 100-percent electric, battery-powered locomotive manufactured by a Chinese enterprise arrives at the Itaqui port in state of Maranhao, Brazil, April 2022. (Photo provided by Vale S.A.)

"Zero-emission equipment manufactured by China are assisting us to achieve net zero emissions before 2050," said Tracy Xie, president of Vale China.

"The report to the 20th National Congress of the Communist Party of China stressed promoting green development and the harmonious coexistence between human and nature, which signifies that China will keep playing an active role in tackling global climate change. It inspires us very much," Xie noted.

Vale S.A. is one of the largest mining corporations in the world and one of the largest excavators and suppliers of iron ore. According to Xie, the company's first shipment of iron ore to China was in 1973, a year before China and Brazil established diplomatic relations.

"China has become Vale S.A.'s largest market in the world since 2006, and over half of the company's iron ore products are sold to China each year," Xie said.

She said the strong momentum of China's economic development is obvious to all, and the country's green development philosophy would create enormous business opportunities and has provided vast platforms of cooperation for many foreign enterprises, including Vale S.A.

The Brazilian company will always place the Chinese market at the center of its development strategy, Xie added.

Vale S.A. has witnessed the constant optimization of China's business environment during its development in the country.

"We are a beneficiary of the reform of the General Administration of Customs (GAC) to simplify customs clearance. Paperless customs clearance enables us to submit materials online, and the procedures are safer, more convenient, and more efficient. The GAC also optimized its inspection and monitoring models for imported iron ore products," Xie said.

"Today, some of our iron ore products, upon inspection by third-party companies, can arrive at warehouses from some ports in just three days, which used to take 20 days. It enables us to deliver the best-quality iron ore to Chinese steel manufacturers with higher efficiency," she said.

Xie told People's Daily that the slowdown of global growth is making uncertainties, but the fundamentals sustaining China's long-term stable growth remain unchanged.

"China enjoys a solid industrial foundation and complete and stable industrial and supply chains. Besides, it also boasts the world's most promising domestic market, which will release huge development potential as it accelerates the building of a new development paradigm. The optimization of China's COVID-19 response will make international trade exchanges more unimpeded, which helps safeguard the stability of global industrial and supply chains and will create more opportunities for international cooperation on innovation and technology," Xie said.

The production of China's new energy vehicles and solar cells surged by 100.5 percent and 44.1 percent respectively during the January-November period last year.

"This indicates that as the world speeds up the transition of energy utilization, China's efforts to promote the use of green energy products and strengthen market cultivation have paid off. Since 2021, Vale S.A. has signed cooperation documents on low-carbon iron production with 10 Chinese steel manufacturers. As an important supplier of raw materials for Chinese enterprises, we are looking forward to embracing a green future of carbon neutrality together with them," Xie said.

She said China's efforts to advance high-level opening up are of important significance for global recovery.

According to a world openness report issued last November, China has continuously improved its openness indexes and become an important force driving economic globalization.

"China's development is creating new opportunities, and we are confident in the future of the Chinese market," Xie told People's Daily.