Chinese money pours into Brazil as US trade war bites, with US$54 billion across 100 projects
Investment is likely to be high on the agenda when the BRICS group of countries opens its summit on Wednesday in Johannesburg
As China and the United States – the world’s top two economies – battle over trade, Beijing has increasingly turned to Brazil to fill the void, pouring money into a diversified portfolio of investments.
Before 2010, Chinese funds flowing into Brazil were primarily focused on assuring food and energy supplies for the Asian giant. But in recent years, that strategy has expanded to include the telecommunications, automotive, renewable energy and the financial services sectors.
And with China now embroiled in an escalating trade war with Washington, Beijing has even more incentive to move closer to Brazil and its other partners in the BRICS group of emerging economies – Russia, India, and South Africa. Investment is likely to be high on the agenda when the group opens its summit on Wednesday in Johannesburg.
China is Brazil’s biggest trading partner. From 2003 to June this year, Chinese firms have invested almost US$54 billion in around 100 projects in Brazil, according to figures from Brazil’s planning ministry.
In 2017 alone, the figure nearly hit US$11 billion.