Sao Paulo, Brazil, 8 May – The main obstacle to entering the Chinese market is a lack of interest on the part of Brazilian businesspeople, the executive-secretary of the Brazil-China Business Council, Rodrigo Tavares Maciel told Brazilian newspaper Valor Económico.
According to Tavares Maciel, there are problems of logistics, bureaucracy and corporate demands in China, but this, to the specialists, does not justify Brazil’s small presence in a market with such high growth potential.
“China is the biggest buyer of machinery in the world, it imported over US$400 million in machinery last year, but we export very little over there in terms of manufactured products,” he noted.
Brazil, which in 2007 focused 70 percent of its exports to China on iron ore, seeds, grain and fuel, could increase its sales to China at a faster rate than to the rest of the world, even if China’s growth slows, Maciel said.
However, the fact that Brazil mainly buys manufactured products from China, growing from US$3 billion in 2001 to US$23 billion in 2007, last year saw a constant trade surplus with China become a deficit of US$1.87 billion.
“This year we are likely to have a much bigger trade deficit, of between US$5 billion and US$6 billion,” the executive-secretary of the Brazil-China Business Council. (macauhub)