Chinese investment in Brazil grew by 33 per cent in 2023, reaching US$1.73 billion, according to a study by the Brazil-China Business Council (CBBC) released on Tuesday.
Although the number of confirmed Chinese projects in the country fell from 32 in 2022 to 29 in 2023, it was still the third largest total since 2007. Most of the financing went to the electricity sector, which accounted for 39 per cent of the total investment amount, equivalent to US$668 million. These investments focused on renewable energy sources such as wind, solar and hydropower.
The highlight was electric vehicles. According to CBBC, Chinese investment in the automotive sector increased by 56 per cent compared with 2022, reaching US$568 million.
Tulio Cariello, research director at CBBC, said the entry of EV companies into the Brazilian market was not new – BYD, for example, has been manufacturing electric buses in the state of São Paulo – but the establishment of factories to produce vehicles for the end consumer represented an increase in the overall investment share.
Cariello said that previously, “Chinese investors favoured entering Brazilian sectors through acquisitions or mergers with already well-established local companies”.
Despite this increase, the amount remains at historically low levels; it is the second-lowest figure since 2009 and only exceeded the US$1.3 billion recorded in 2022.
According to the researcher, the growth in investment in 2023 took place against the backdrop of a sharp devaluation of Brazil’s currency, the real. In 2010, when investment peaked at US$13 billion, the dollar was trading at an average of 1.76 reals. Between 2020 and 2023, that average rose to 5.18 reals, which affected the conversion of Chinese investment volume.
Despite the drop in values, the study identified opportunities for the future, such as renewable energy, electromobility and high-end manufacturing. CBBC also measured trends in other global regions and reported that although investment in the United States, Australia and the European Union fell significantly (36 per cent, 57 per cent and 4.2 per cent respectively), China invested 37 per cent more in Belt and Road Initiative member countries.
For Brazil, which is negotiating with Beijing to become part of China’s infrastructure and trade project, this figure could mean a tangible gain. In July, Brazilian President Luiz Inacio Lula da Silva said he was looking into what benefits the country could get by joining the belt and road.
“Chinese capital is finding it difficult to invest in these regions due to geopolitical tensions and protectionism in strategic sectors. In this context, it is only natural that the Global South, especially those countries allied with the BRI, offer more security to investors,” Cariello said.
“I think we are entering an era where the Chinese presence is no longer concentrated in geographically and economically isolated companies, but on projects with a much broader impact on the value chain,” Arbache said.
Left-leaning governments specially in former colonies generally means more cooperation with Global South countries. While right wing ones lead to the opposite as we can see in Argentina right now with Milei.
Twitter is completely infested with nazis and far-right misinformation campaigns; even more so since Elon bought it. Banning it doesn't do much about the Brazilian right wing, but it does separate Brazilians from the american right wing somewhat, since Brazil makes/made up a third of Twitter users.
That was years ago. Its popularity had already far decreased before they banned it.
Still a good thing to ban nazi infested sites though. Bolsonaro getting elected was in part due to far-right misinformation on Twitter, as the linked article also points out.