China opens new possibilities for the Brazilian economy

Diplomatic relations between Brazil and China were resumed after 50 years, and trade between the two countries grew enormously. As a result, the Chinese became Brazil's largest trading partner. However, this strong relationship has not yet resulted in a model of importing manufactured goods and exporting raw materials.

The relationship between Brazil and China is particularly important when it comes to the sale of grains, minerals and meat produced on Brazilian soil and sold to China. If it weren't for the growth the economy has achieved in recent times, Brazil probably wouldn't be the size it is today. The sales mix needs to be rethought in light of manufactured goods.

Chinese trade has helped Brazil a lot

In 2023, China was the first country to import more than US$100 million from Brazil. Due to trade between the two countries, there was a surplus of US$51.1 billion, an amount that exceeded more than half of the annual trade balance. Pulp, iron ore, soybeans, and oil are the products exported by Brazil that are part of the Brazilian products that are most exported to China. Imports include a list that includes a plurality of manufactured goods, such as electric generators, electronic products, and office supplies. For Brazil, it has become important to preserve and expand exports related to agricultural products, as competitiveness is assured due to advanced technologies.

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_{Lula and Xi Jingping (Photo: reproduction/Ken Ishii-Pool/Getty Images Embed)}

Investments have increased, but they were already higher

Investments made by China in relation to Brazil increased by 33% in 2023, with a view to 2022, according to the Brazil-China Business Council (CEBC), the value of investments reached US$1.73 billion, but there have been better years. In 2016 and 2017, investments reached US$9 billion, even taking into account the effects of currency devaluation and from 2017 onwards, investments began to decline.

In 2010, the Chinese invested US$12.8 billion in 12 projects and in 2023, the total amount was distributed among 29 ventures. Brazil is trying not to miss the chance to use its own low-carbon energy matrix to attract industrial investments.

Featured photo: Lula and Xi Jinping (reproduction/Ken Ishii-Pool/Getty Images Embed)