Tuesday, November 27, 2012

Latin America: China Has Invested US$68 Billion in Brazil Since 2007

The Buenos Aires-based business publication, Clarín, according to a study by the Brazil-China Business Council, 44 Chinese companies, both public and private, have invested US$68.4 billion in Brazil between 2007 and 2012. Of that amount, US$24.4 billion of the investments are for projects that are still under development. 

Bi-lateral investments include 60 projects related to natural resources, raw materials, services, mining, oil and technology. Trade between both Brazil and China reached US$78 billion this year [2012] and is estimated to increase.

Examples of such investments include the Chinese company, Sany, which will invest US$200 million in a factory that will produce paving equipment. Changan International has also invested in the construction of an automotive factory, set to initially produce 50,000 vehicles a year in 2014 and which will later reach production of 120,000 units per year.

COMMENT: While the US has permitted itself to get bogged down in a ten-year military quagmire in both Iraq and Afghanistan, China stands to gain a significant foothold in Latin America.