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Chapter 7 - China's Influence on Deforestation in Brazilian Amazonia: A Growing Force in the State of Mato Grosso

from Part IV - CHINA'S AND LATIN AMERICA'S AGRICULTURAL SECTORS

Published online by Cambridge University Press:  12 September 2017

Philip M. Fearnside
Affiliation:
Professor In The Department Of Environmental Dynamics At The National Institute For Research In The Amazon, Manaus, Brazil
Adriano M. R. Figueiredo
Affiliation:
Professor Of Regional Development And Econometrics At The Federal University Of South Mato Grosso
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Summary

China influences deforestation in Brazilian Amazonia in a variety of ways, including the direct influence of Chinese enterprises. We examine these issues and present data on the growth of China's role in Brazil's soy and beef sectors, which are major drivers of deforestation in the country's Amazon region. We concentrate on the state of Mato Grosso, where soy and beef production are dominant forces and where China is the principal destination for exports. China also purchases other commodities from Brazilian Amazonia, such as iron ore and timber. Chinese financing is increasingly influencing and accelerating infrastructure development projects such as a planned railway that would connect Mato Grosso to ports on the Amazon River in order to facilitate soy exports.

We find that increases in Brazil's exports to China are significantly, positively associated with increasing deforestation rates. Nevertheless, deforestation has been declining in recent years, thanks to improved regulation, including a powerful new measure that disqualifies any operation with environmental irregularities from benefiting from public loans. However, the future of this policy is not secure. The influx of money from the booming Chinese export market is reshaping the Brazilian political landscape. The “ruralist” voting block representing large landowners has used its newfound influence to push for relaxing environmental regulation. If Brazil is to consolidate its gains against deforestation, especially during an agricultural export boom, it will need to hold fast to its regulatory progress and resist the call to sacrifice long-term conservation goals for short- term export revenue.

Introduction

As a country with vast natural resources, including agricultural land, timber, hydroelectric capacity and mineral deposits, Brazil is a logical source of imports to supply China's burgeoning demand. Brazil is also a logical destination for Chinese investment, particularly in the extraction or production of commodities and the transport infrastructure needed to facilitate export. Brazil's political stability and openness to foreign investment, combined with the financial power provided by China's strong economy, translate into the impressive growth and scale of China's presence in Brazil.

Type
Chapter
Information
China and Sustainable Development in Latin America
The Social and Environmental Dimension
, pp. 229 - 266
Publisher: Anthem Press
Print publication year: 2017

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