by: Jessica Ferreira
Brazil and Mexico are the main destinations for Chinese investment in vehicles in Latin America, according to a report by Allianz Research, the analysis division of Allianz Trade.
The document points out that increased investment in emerging markets could transfer part of China’s production capacity abroad, sharing knowledge and technology.
However, it adds, while exports to emerging markets have been growing, accounting for almost 60% of China’s foreign sales, the domestic market is in decline.
“Increased foreign investment could be a win-win solution to mitigate the trade surplus, but it is likely to face geopolitical resistance,” added the report’s authors.
In Brazil, some Chinese automakers have already announced investments of R$ 19 billion (USD 3.69 billion) over the next few years, with a focus on the electric vehicle sector.
