Brazil seeks buyers in China in wave to privatise 58 state firms

Brazil's President Michel Temer has announced plans to privatise 58 state firms in a bid to spark an economic revival after two years of recession.
Brazil's President Michel Temer has announced plans to privatise 58 state firms in a bid to spark an economic revival after two years of recession.PHOTO: AFP

BRASILIA (AFP) - Brazil's President Michel Temer headed to China with ministers and business leaders on Tuesday to woo investors as he seeks to privatise a host of state utilities.

Mr Temer has announced plans to privatise 58 state firms in a bid to spark an economic revival after two years of recession.

"We hope China may be interested in taking a stake in these concessions and bring capital to Brazil. It will be very useful to us," he said in an interview on Chinese state television.

The planned privatisations range from the Congonhas aircraft terminal in Sao Paulo to big state-run energy utility Eletrobras and even the national mint.

While in China, Mr Temer will also take part in a summit on Sept 3 of the BRICS grouping of major emerging economies.

He is scheduled to meet with Chinese President Xi Jinping on Friday (Sept 1).

Brazilian presidency spokesman Alexandre Parola said the two countries would sign bilateral deals on infrastructure, health, culture and technology.

"Brazil is a safe destination for Chinese investment and a big provider of food and supplies to China, our main trade partner," he said.

Brazil's foreign trade ministry says bilateral trade was worth more than US$58 billion (S$79 billion last year.