by: Jessica Ferreira
Chinese investors continue to be involved in traditional sectors of the Brazilian economy, such as energy and infrastructure, but are simultaneously showing signs of interest in hi-tech sectors.
As the energy transition accelerates, Latin America could become an important platform for China to compete with US companies in the production of electric vehicles, placing the region’s undoubted potential in terms of lithium extraction within China’s scope, given its prowess in battery production.
According to Tulio Cariello, research director at the Brazil-China Business Council (CEBC), Chinese investors continue to bet on electricity, with State Grid Brazil Holding and China Three Gorges Corporation developing important projects, while new players, such as China General Nuclear, enter the sector.
Chinese investors’ interest in the energy sector goes hand in hand with a call for energy transition, with shareholders evaluating not only existing hydroelectric projects, but also solar and wind energy projects.
As part of the energy transition, it is also worth highlighting the development of the electric car industry, with a significant trend of Chinese electric vehicle companies in Brazil, such as the recently installed BYD factory in Bahia, and throughout Latin America.
However, it’s not only the energy sector that has attracted the attention of Chinese investors, as they recognize Brazil’s relevant role in technology, which is why Chinese companies have also invested in local businesses and developed new apps in the country.
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With regard to the publication on Chinese investments in Brazil by the Brazil-China Business Council (CEBC), Cariello points to the publication of the 2023 report in August this year, adding that “we shouldn’t see any big leaps in Chinese investments in the coming years”.
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