Source: Reuters

Qu Yuhui, minister counselor at the Chinese embassy in Brazil, told Reuters in an interview on Friday that Chinese and Brazilian companies could form soybean processing joint ventures to push Brazil to export more processed soybean meal to China.China is the top buyer of Brazilian soybeans.

Qu Yuhui said that most Chinese companies process soybeans in domestic factories instead of buying soybean meal directly from Brazil.

Qu Yuhui told Reuters that if Chinese and Brazilian companies set up joint ventures in Brazil, it would be a good choice for the profits of both parties.Qu Yuhui also said that such cooperation can ease the pressure on Brazil's logistics costs.

However, Qu Yuhui said that as for China's provision of low-tariff soybean meal import quotas to Brazil, this aspect has not yet been discussed.

Chinese investment in Brazil jumped to a seven-year high in 2017, fueling debate over the bilateral relationship ahead of Brazil's presidential election in October.Right-wing candidate Jair Bolsonaro, currently the frontrunner, has slammed China for buying Brazilian land and mining businesses.

China is not buying assets in Brazil, but buying Brazil.This is a big problem that we should be worried about, Bolsonaro said in a recent TV interview.

Qu Yuhui said it was difficult to understand why Bolsonaro was so concerned, adding that China accounted for only 3 percent of foreign purchases of Brazilian land.

Regardless of who wins the election, China and Brazil will continue to work together to develop together, he said, adding that bilateral trade between the two countries is expected to grow 25 percent to $110 billion in the next two to three years.

Qu Yuhui said that it is still too early to say whether the Sino-US trade dispute will affect China-Pakistan trade.Before the current dispute, China-Pakistan trade was already growing rapidly.

In addition to strong demand for Brazilian soybeans and corn, Qu said rising Chinese consumption would boost fruit, chicken, pork and beef trade.

The surge in bilateral trade has also been accompanied by friction.

China imposed anti-dumping measures on Brazilian chicken in June, and tariffs on sugar have also affected Brazilian sugar exports to China.

I am more optimistic that this problem should find a suitable solution in a relatively short period of time, he said when talking about the Brazilian sugar export issue.He expressed similar sentiments about the chicken trade.