Brasilia, Brazil, 27 July – Investment by Chinese companies in Brazil is this year expected to total US$12 billion making China the biggest foreign direct investor in Brazil, according to the Brazilian press.
This influx of investment denotes a radical change in the way Chinese companies are approaching the Brazilian market as last year they invested just US$82 million and US$213 million between 2001 and 2009, according to figures from Brazil’s central bank.
The US$12 billion investment by Chinese companies projected for Brazil this year is more than twice that of the biggest foreign direct investor in Brazil in 2009, the Netherlands, whose companies invested US$5 billion in Brazil.
Analysts cited by the Brazilian press said that the economic crisis in the United States and Europe had been decisive in the fact that Chinese companies were paying more attention to Brazil.
“After China suffered with the recession in the US and European markets, Latin America was left, which had not yet been much explored due to distance and cultural differences. As Brazil went through the crisis relatively well, it became a target for the Chinese,” the honorary chairman of the Brazil-China Chamber of Economic Development and director of Fortune Consulting, Paul Liu, told website G1.
One of the biggest investment by Chinese companies is construction of a steel plant in the state of Rio de Janeiro, where China’s Wuhan Iron and Steel Corp (Wisco) and Brazil’s LLX plan to invest US$3.29 billion. (macauhub)