Brazil's "Folha de S.Paulo" reported that although Brazil's exports to the United States fell by 18.5% in the first month of Trump's tariffs, a survey by the Brazil-China Trade Commission (CEBC) showed that direct investment from China to Brazil in 2024 doubled compared to the previous year, reaching 4.2 billion dollars. With the two countries' diplomatic closeness, Brazil has become the third-largest investment destination for China in the world.
The survey showed that investments in the energy sector continue, as well as investments in new areas such as electric vehicles (EV) and food delivery.
Minister of Industry Development, Innovation, Trade and Services of Brazil, Moreira, said, "The entry of Chinese enterprises is extremely desirable, which will shock Brazilian industry competitors," and stated, "Such investments are necessary for developing domestic supply chains (supply networks)."
On the other hand, many Chinese factories, including those producing electric vehicles, still import components produced in China and assemble them in Brazil. Moreira pointed out that these investments limit the number of jobs created in Brazil and have little impact on attracting new factories for the entire supply chain, which are key to economic growth.
With U.S. President Trump imposing high tariffs on imports from Brazil and China, President Lula of Brazil and President Xi Jinping of China met twice in the past year and announced cooperation in multiple fields. A surveyor from CEBC said that China's expansion of investment in Brazil is "due to geopolitical tensions."
Original: www.toutiao.com/article/1842429330251792/
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