A total of 235 direct investment projects in Brazil were announced by China between 2003 and 2017, involving US$103.6 billion, according to a study by the Office for International Affairs of the Ministry of Planning, Development and Management.
The study, quoted by Brazilian daily newspaper O Globo, said that of that total there were 87 confirmed projects, with an investment of US$46.8 billion in a variety of sector including energy, oil and gas, industry and agriculture and agro-industrial projects.
Jorge Arbache, Secretary of International Affairs, is quoted in the newspaper as saying that it is not only the large Chinese state groups that intend to invest abroad, as provincial companies, private companies and even private high net worth individuals are also interested in doing so.
Arbache also said that most Chinese investment is channeled into mergers and acquisitions, not to new projects in receiving countries, which has led several governments, such as the United States and Germany, to restrict the inflow of Chinese capital.
The report said that Chinese investments in Brazil only became significant after 2004, with the Secretary of International Affairs saying that a shift in the profile of the biggest investors is taking place, “with China having already overtaken Europeans and Americans.”
The secretary said that the data collected and now presented in the study of the Ministry of Planning, Development and Management is more complete than that of the Brazilian central bank, which does not take into account resources from tax havens like the Cayman Islands and Luxembourg. (macauhub)