China expected to invest US$25 billion in Brazil in 2010

6 August 2010

Sao Paulo, Brazil, 6 Aug – The chairman of the Brazil-China Chamber of Commerce and Industry said in Sao Paulo that China would be the biggest foreign investor in Brazil this year with over US$25 billion, Brazilian newspaper Estado de São Paulo reported Friday.

Charles Tang noted that, “from January until now, China has announced around US$10 billion in projects. A further US$10 billion in Chinese resources will finance the pre-salt layer projects led by Petrobras. By the end of the year China is expected to invest US$25 billion in Brazil.”

The preference of Chinese investments has been in projects for the mining and pre-salt oil sectors, but there are cases of investments in the agri-business, infrastructure, steel making and energy sectors.

In the case of pre-salt layer oil China has invested on several fronts, ranging from supply of equipment to providing loans.

Chinese state company Sinochem announced in May it would buy 40 percent of Norwegian company Statoil’s stake in the Peregrino oil field, in the Campos basin, costing US$3 billion. (macauhub)