China and Brazil should be partners in ethanol business in Africa, specialist says

18 April 2007

Sao Paulo, Brazil, 18 April – China and Brazil have the opportunity to be partners in ethanol businesses and could carry out joint projects in African countries, specialist in Asian economics, Arthur Kroeber said in Brazil.

The director of the Dragonomics consultancy, headquartered in Beijing, and editor of the China Economic Quarterly newsletter, said in an interview with newspaper Estado de Sao Paulo that Brazil would find it difficult to export ethanol directly to China, as “the Chinese do not like to import things and they want to take on that technology.”

Kroeber’s suggestion is that the Brazilian and Chinese should set up partnerships in other countries, such as in Africa, which have the capacity to produce sugar cane, which is widely grown in Brazil and is one of the most effective sources of ethanol.

Kroeber also said that China could try to produce bio-fuel on its own territory, from maize or cellulose, but considered that production would not be sufficient and “would be less efficient,” than in Brazil.

“Brazil is the most efficient producer, it has an established technology and production capacity,” said Kroeber, who was taking part in an event at the Fernando Braudel World Economy Institute, in Sao Paulo.

“IN the long term if the Chinese are really interested (in ethanol) they will have to set up partnerships,” Kroeber told the newspaper. (macauhub)