Trade between Brazil and China set to more than double by 2010, Chamber of Commerce says

9 January 2007

Sao Paulo, Brazil, 8 Jan – Trade between Brazil and China is expected to rise from US$16.4 billion in 2006 to US$35 billion in 2010, the president of the Brazil-China Chamber of Commerce and Industry (CCIBC), Charles Tang, told Macauhub.

“The giant markets of Asia and South America are in expansion and considering the growth from 1999 until now, it is not excessive to estimate that figure (US$35 billion),” he added.

In 1999 trade between Brazil and China totaled US$1.5 billion. Last year that figure rose 11-fold to US$16.4 billion.

In 2003 Chinese exports to Brazil totaled US$2.1 billion. From 2004, with the valuation of the real against the dollar, Brazilian purchasing increased and in 2006 Brazilian imports of Chinese products rose to US$7.9 billion.

According to Tang Chinese consumption has also grown and the Chinese policy of inclusion and better distribution of wealth should increase demand for imported products.

The head of the CCIBC expects new business deals between Chinese and Brazilian businesses in the sugar and ethanol sector.

Brazil’s great availability of sugar and ethanol and the high energy consumption of China, added to attempts by the Chinese government to reduce pollution, are positive signs for the sector.

“Brazilian business owners should continue to buy factories in China,“ the representative of the CCIBC projected, saying that ‘high production costs in Brazil,” justified those acquisitions. (macauhub)