China has announced that it has secured some US$100 billion from at least five state funds for a new investment programme in Brazil, mainly for infrastructure construction, during meetings held in Brasilia last week, the Brazilian media reported.
At meetings that took place in the Brazilian federal capital, Chinese officials also announced an increase in lending in Brazil, in an attempt to attract clients in the agricultural business and industry sectors.
The Folha de Sao Paulo newspaper reported that infrastructure Minister Tarcísio Gomes de Freitas had signed a cooperation agreement with China’s Transport Minister last week, under which the projects will be conducted in partnership.
Figures from the Brazil-China Business Council showed that Chinese investment in Brazil over the past decade has reached US$57 billion in 145 projects across 21 states and the Federal District.
Most of this investment took place from 2017 onward, under then-President Michel Temer’s Government concessions and privatisation programme, with the Chinese groups consolidating their presence in the electricity sector by acquiring producers, distributors and transmission lines.
Although most of the investment is focused on energy, the Chinese groups are present across the Brazilian economy, from machinery and equipment manufacturing, to telecommunications, paper and pulp, oil and gas, agriculture and retail.
Since 2009, China has been Brazil’s largest trading partner, with Brazilian companies exporting goods worth US$51.5 billion from January to October and importing goods worth US$30 billion. (Macauhub)