In an article titled "Businessmen of Brazil celebrate with reserves and demand clear regulations," the O Globo daily said themeasure was welcomed by Brazilian entrepreneurs and consultants.

The document, signed by Brazilian President Luis Inacio Lula daSilva and his visiting Chinese counterpart Hu Jintao on Friday, facilitates China being regulated by guidelines of the World TradeOrganization (WTO) in trade with its major partners, it added.

Rubens Barbosa, former Brazilian ambassador to Washington and currently a firm consultant, believed the recognition of China as a market economy could contribute to balanced Brazil-China trade ties.

"If the terms of the agreement are kept, there will be a balanced trade between the two countries. In such a way, there will not be an invasion of Chinese products as was the case of theUnited States," said Barbosa.

Local analysts pointed out the memo helps the South American country to increase its participation in the Chinese market.

President Lula said Friday night that it is a sign of confidence showing the strategic relations between the two countries are "real."

The memo is "an unequivocal demonstration of the goals of seriousness and priority" of the relations with China, he stressed.

Professor Evaldo Alves, of Getulio Vargas Foundation, said the practical application of the agreement will entail the consensus-based approval of other WTO members.

"The applications are not immediate. To China, the greatest value of the Brazilian attitude is that it represents an importantfavorable vote within the WTO," said Alves.

Under the document, Brazil would allow an increase in the salesof agricultural and industrial products from China, as well as thearrival of more Chinese investments in Brazil.

Both sides agreed in the memo that they will strengthen cooperation and "appropriately handle" issues arising from border inspection and quarantine.They also agreed to enlarge cooperation in areas of aircraft making.

Chinese officials said the recognition of China's full market economy status enriched the contents of China-Brazil strategic partnership relations, and will "strongly expand the opportunitiesof trade and investment."

It will also improve the competition environment for both Chinese and Brazilian firms, said Chinese officials.

China-Brazil trade and economic cooperation has been growing rapidly over the past several years. Two-way trade grew 58.4 percent during the January-September period this year.

Chinese statistics show that China-Brazil trade volume hit 9.296 billion US dollars the first nine months of the year, more than that of the whole year of 2003.