China expected to invest US$9 billion in Brazil this year

6 July 2011

Beijing, China, 6 July – China is expected this year to invest US$9 billion in Brazil, half of which in hi-tech industrial projects, the executive secretary of the Brazilian Ministry of Development, Industry and Commerce, Alessandro Teixeira told the China Daily newspaper.

Brazil mainly sells raw materials to China, which is its main trading partner and the biggest foreign investor in 2010, and wants to diversify its export to products with a high added value.

At the end of 2009, 95 percent of Chinese investments in Brazil, which reached an accumulated total of US$12.67 billion, were made in energy (45 percent), agriculture (20 percent), mines (20 percent), and steelmaking (10 percent), according to the Bradesco bank in figures cited by the English-language Chinese newspaper.

In 2010 investments rose to US$17 billion, China Daily said.

Brazil asked Chinese companies to start investing in different sectors and Teixeira said that, in order to invest in agriculture foreign companies would now have to start finding local partners.

“Raw materials account for 70 percent of two-way trade,” Teixeira said calling for an improved trade relationship in the technology sector.

Chinese telecommunications companies, Huawei and ZTE have invested significantly in Brazil over the last few years, the China Daily said, noting that ZTE set up an industrial park in Hortolândia, in the interior of Sao Paulo state. (macauhub)