| | | As US door shuts, Brazilian one opens
China is increasingly turning to South America for mutually beneficial trade as Washington’s scattergun policies prove self-defeating
Published: 6:30am, 9 Jun 2025
Amid an intensifying trade and tech war with the United States, China’s economic ties with Brazil have grown significantly. From soybeans and corn, and beef to iron ore, Chinese importers are increasingly switching from the US to South America’s largest economy. But both sides are moving beyond commodities, and rapidly diversifying into finance and banking, and hi-tech.
A high-profile delegation of more than two dozen Brazilian entrepreneurs and heads of family offices was led by BTG Pactual, one of the country’s largest banks, on a tour of Beijing, Shanghai, Shenzhen and Hong Kong.
The roadshow followed a visit by President Luiz Inacio Lula da Silva to Beijing last month to strengthen bilateral ties. The two nations are founding members of Brics. It makes sense for prominent institutions such as BTG to look for investment opportunities in China, including the possibility of setting up shop in Hong Kong. In 2022, bilateral trade amounted to US$150 billion, a 37-fold increase from 2001. It hit US$181.5 billion in 2023. China is Brazil’s largest trade partner, and accounts for more than 70 per cent of the latter’s exports of soybeans and more than 40 per cent in pulp and crude oil.
Chinese companies have already invested in Brazil’s electricity sector, while others are eyeing building data centres, especially Chinese artificial intelligence firms.
One attraction is Brazil’s abundance of affordable renewable energy sources, such as hydropower. Lula’s government is reforming the tax code, including reducing tariffs on data-centre equipment. This is despite Chinese AI companies having drawn hostile scrutiny from Washington, which is suspicious of almost any Chinese activity, commercial or otherwise, among its southern neighbours.
Electric vehicle giant BYD – which cannot sell cars in the US because of prohibitive tariffs – is building a factory in Brazil that is set to be operational by the end of next year.
On-demand service giant Meituan has signed a US$1 billion deal to expand its Keeta food delivery platform into Brazil. Pragmatic, neutral and ready for business, Brazil is showing the way for its neighbours to build prosperous ties with China. |
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