DATA & FIGURES
The article highlights several key figures, including US$5 billion in tax credits for the critical minerals bill, US$2.8 billion bid for Serra Verde, the only mine in production, and 91 per cent of global refining controlled by China. Additionally, Brazil holds the world's second-largest rare earth reserves after China, and Nvidia's H200 chips are being limited to about 10 Chinese firms.
THE SCENARIO
The geopolitical context of the US-China rivalry is having a significant impact on Latin America and Europe, with both regions being left behind in the artificial intelligence race. The situation is further complicated by the role of rare earths, which are critical for the production of chips, batteries, satellites, and defense systems. The US and China are both vying for control of these resources, with Brazil being a key player due to its significant rare earth reserves.
DIRECT QUOTE
"We must recognise that neither Latin America nor Europe is leading the artificial intelligence race. What we see today are two poles, the United States and China." — Celso Amorim, former foreign and defence minister of Brazil
BBN INSIGHT
The US-China rivalry in artificial intelligence has significant implications for the global balance of power, with Latin America and Europe being left behind. The role of rare earths is critical in this context, with both the US and China vying for control of these resources. Brazil's strategy of drawing capital and technology from both the US and China while maintaining its sovereignty is a key aspect of its foreign policy. The Brics bloc, which includes China, Russia, India, South Africa, and Brazil, is also an important factor in this context, as it provides a platform for the Global South to respond to the challenges posed by the US-China rivalry.