Investments by Chinese companies in Brazil totalled US$24.4 billion in the last five years, according to a study carried out by the Brazil-China Business Council.

Between January 2007 and June 2012, the study identified 60 Chinese investment projects in Brazil, in the amount of US$68.5 billion, of which 39, accounting for US$24.4 billion, were confirmed, whilst the other 21 projects are still under negotiation.

2010 was a year of significant expansion for Chinese investment in Brazil, with a total of US$13 billion, after totalling US$600 million between 2007 and 2009, and less than this amount in the preceding years.

“The 2010-2011 period marked a new phase in investment between the two countries, characterised by a significant influx of investment by China to Brazil,” the study said.

The document from the Brazil-China Business Council said that Chinese companies sought to “secure in the long term a supply of raw materials and to find a market with potential to set up an industrial export platform focused on Latin America.”

The first investments focused on supplying natural resources – minerals, oil and gas and agricultural products – on order to meet growing Chinese demand. That interest later evolved and moved on to the infrastructure sector, particularly telecommunications and energy.

Later still Automotive manufacturers moved in seeking Brazilian consumers and “we are no in the fourth chapter of that journey with the inclusion of the services sector,” noted the study, according to which three of the four main Chinese banks have announced investments in Brazil.

In 2012 China overtook the United States to become Brazil’s top trading partner, with two-way trade totalling US$75 billion, with a surplus for Brazil of US$6.9 billion.
 

Related Chinese News: 过去五年中国公司在巴西投资244亿美元

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