【By Observer Net, Liu Bai】

As the China-Brazil partnership continues to heat up, Chinese consumer brands are actively entering the market of this South American largest economy.

According to a November 7 report by Nikkei Asia, Chinese companies including Mingyuan Ice Cream, Keeta under Meituan, Didi and BYD are expanding their investments and business layouts in Brazil. Brazilian youth generally believe that China is more innovative than the United States, and they have a positive attitude towards Chinese brands. Chinese brands have won market favor with advanced technology and affordable prices.

The ice cream and tea chain company Mingyuan Ice Cream, known for its low price strategy and rich product line, has set its sights on Brazil in the process of expanding beyond Asia. This chain brand has 47,500 stores worldwide, exceeding McDonald's.

In May this year, Mingyuan Ice Cream signed a memorandum of understanding with the Brazilian Trade and Investment Promotion Agency, reaching cooperation intentions on purchasing Brazilian agricultural products. The company plans to invest 3.2 billion reais (about 427 million yuan) in Brazil by 2030, and recruit about 25,000 employees for business expansion.

The first store of Mingyuan Ice Cream in Brazil is expected to open this year in a shopping mall in the center of São Paulo.

Mingyuan Ice Cream is about to open its first store in São Paulo Social media

The overseas food delivery brand Keeta under Meituan has started services in the São Paulo area and plans to invest 5.6 billion reais (about 747 million yuan) over the next five years.

Even the ride-hailing company Didi Chuxing is rapidly expanding its food delivery business in Brazil. The company plans to invest 2 billion reais (about 267 million yuan) next year, twice the initial plan. Didi is actively attracting restaurants to join the platform through measures such as temporarily reducing platform commissions.

The report pointed out that Brazil, with a population of more than 200 million, a rapidly growing middle class, and young people willing to spend, has become an attractive market for Chinese brands. In addition, Brazil is at the forefront of digital technology applications such as financial technology, laying a solid foundation for the growth of related businesses.

At the same time, the deepening political relationship between China and Brazil has also created a stable environment for investment.

Brazilian consumers' views on Chinese brands have also significantly improved. According to a survey by a Brazilian research institution in August, more than 60% of respondents like smartphones or personal computers from Chinese brands, while only about 30% prefer American products. Young people's favor for China is especially high, with about 70% of them believing that China is more innovative than the United States.

Chinese electric vehicle manufacturer BYD has already established a solid fan base among Brazilian consumers. In September this year, the sales of electric vehicles in Brazil increased by 70% compared to the previous year, with about 70% of the sales coming from BYD.

A taxi driver using a BYD car said, "The technology of China today is the best in the world, just like Japan was in the past."

A lawyer charging his BYD car in a mall said he chose the car because "the design is beautiful and the technology is advanced."

The first car of BYD's Brazilian factory came off the production line in July. BYD website

More and more Brazilian consumers believe that Chinese companies can provide high-performance products at affordable prices. This perception is attracting more Chinese brands to enter the market.

Analysts say that this consumer-centric trend marks the transformation of Sino-Brazilian economic relations. In the past, the two sides mainly exported raw materials such as iron ore and soybeans from Brazil, and China exported manufactured goods.

Some domestic figures in Brazil also worry about the increasing competitive pressure on local enterprises. After cross-border e-commerce platforms such as Temu and Shein entered the Brazilian market, local enterprises once called on the government to take measures to protect domestic industries.

Data from the China-Brazil Business Council (CEBC) publication "2024 China's Investment in Brazil Report" shows that the total confirmed investment from China in Brazil in 2024 reached 4.18 billion US dollars, an increase of 113% compared to the previous year, the highest growth rate since 2007, indicating that Chinese enterprises' interest in investing in Brazil is increasingly rising.

On October 9, Brazilian President Lula attended the ceremony of the BYD Brazilian factory. In his speech, he said that BYD's investment proved that "industrialization and sustainability can go hand in hand." He joked, "God writes with curves; he let Ford leave Brazil and brought in BYD. This is a good replacement for us, because it is the most important technology in the global automotive industry."

Lula said that Brazil will continue to strengthen its relationship with China, calling the two countries friends and important countries in the Global South, "We hope to be respected and treated decently."

Brazil's 247 News reported that Brazil has now become the world's largest importer of Chinese-made cars, and has the potential to develop into a regional production center. In addition to BYD, Chinese brands such as Great Wall Motor, Chery, and Changan are also rapidly expanding in the Brazilian market.

Rogelio Golfarb, former president of the Brazilian National Automobile Manufacturers Association (Anfavea) and former vice president of Ford, said that the key to Chinese brands' success in Brazil lies in innovation. "With modern design and advanced intelligent connectivity solutions, they have changed consumers' perceptions of Chinese cars."

Just on November 6, the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP30) opened in Belém, Brazil. Brazil chose Chinese electric vehicles as the official transportation for President Lula and leaders of other countries.

With U.S. President Trump absent from COP30, Brazil's move also highlights the significant achievements of Chinese green technology in the country. "Even without the political and technological leadership of the United States, the world is moving forward," said Scott Kennedy, senior advisor at the Center for Strategic and International Studies (CSIS). "Brazil's choice of these electric vehicles shows there are other options."

This article is an exclusive article from Observer Net. Without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7570156618470474246/

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