A study has shown that, as the two countries strengthen diplomatic relations, China invested about US$4.2 billion (RM17.762 billion) in various fields in Brazil last year, making Brazil the third largest destination for Chinese investment in the world.
According to foreign media reports, a study by the Brazil-China Business Council shows that in 2024, China's direct investment in Brazil more than doubled compared to 2023. Chinese companies have also expanded their investment from energy projects to emerging areas such as electric vehicles and food delivery.
However, an official from the Brazilian Ministry of Industry pointed out that many Chinese companies, including electric vehicle manufacturers, still import components made in China and only carry out final assembly in Brazil. This type of investment creates limited employment opportunities and cannot effectively drive the establishment of new factories in the key supply chain.
Over the past year, Brazilian President Lula and Chinese President Xi Jinping have met twice and announced cooperation in multiple fields. This move comes at a time when US President Trump has intensified the trade war and imposed high tariffs on goods from both countries.