China has now swung behind US policy, which is against the enlargement of the permanent membership of the UN Security Council. This move has disappointed Brazil which had hoped for Chinese support for its application to become a permanent member. China's view is coloured by its opposition to granting Japan a permanent seat on the Security Council.

China's move has thrust Japan and Brazil into a closer alliance on UN reform. President Lula da Silva visited Tokyo at the end of May to underline the development. His trip to the Far East also took in Seoul. 

Brazil's rapprochement with Japan could have economic implications. In the 1970s, Japan became the third-largest investor in Brazil as it took stakes in raw material producers and basic industries such as steel and petrochemicals. Since then Brazilian-Japanese links have frayed: Japan is now only the 10th largest foreign investor in Brazil.

President Lula is keen on diversifying the range of Brazil's exports to Japan away from raw materials and commodities. He claimed that Japan could become a significant market for Embraer's mid-range jets, Brazilian software and its cleaner alcohol-based fuels. 

In 2004 Brazil's exports to Japan were worth US$2.7bn. Brazil's imports from Japan came to US$2.8bn. Brazilians are Japan's third-biggest national minority after Chinese and Koreans. The biggest Brazilian community is in Nagoya.

Brazil and Japan say that they are both members of the so-called Group of Four. The other two countries which feel that they deserve permanent seats on the UN security council are Germany and India. 

Peru: President Alejandro Toledo of Peru paid an official visit to China at the beginning of June. Peru was one of the first countries in Latin America to establish diplomatic relations with China: it did so in 1971. In December 2004 both countries elevated their bilateral relationship to an Association of Complete Cooperation. China is Peru's second-biggest trading partner. Peru runs a heavy trade surplus with China, thanks to its large exports of metals. The other important Peruvian exports are fishmeal and cotton yarn. In 2004 China imported US$1.23bn worth of goods from Peru and exported about US$705m. Trade between the two countries increased by 80% in 2004. 

The most tangible result of Toledo's visit was the gift of US$133m worth of seismographs from China.