Brazil and China began negotiations on technology exchanges on the use of alcohol as fuel in internal combustion engines, a Brazilian official said on Friday.

Brazilian Development, Industry and Foreign Trade Minister Sergio Amaral said negotiations could include production, equipment and alcohol technology.

Amaral was speaking to the press after meeting with the Vice Minister of the State Development Planning Commission of China, Zhang Guobao, who is visiting Brazil.

Amaral said Brazil and China will continue negotiations on formalizing joint-venture investments to assemble Brazilian Embraer aircraft in China. Zhang emphasized Brazil's importance as an emerging country and said bilateral trade cooperation had been strengthened.

He said China acquired 18 million tons of iron ore in Brazil, and there were plans to increase this volume. Brazilian exports to China increased more than 75 percent last year.

(China Daily November 9, 2002)