According to a recent study, Brazil has become the third-largest destination for Chinese global investment, attracting $4.2 billion in Chinese investments across dozens of projects spanning various sectors last year. The research, released by the Brazil-China Business Council (CEBC), indicates that in 2024, Chinese direct investment in Brazil doubled compared to the previous year, with Chinese companies not only investing in energy projects but also venturing into emerging sectors like electric vehicles.

Uallace Moreira, Head of Industrial Development at the Ministry of Development, Industry, Trade, and Services (MDIC) in Brazil, stated, "Chinese investments in the Brazilian market will bring competition to other companies in the local industrial sector. These investments from China will truly drive the development of the local industrial supply chain."

Currently, many Chinese factories in Brazil still rely on importing components from China for final assembly in Brazil, including some electric vehicle manufacturers. This type of investment creates fewer job opportunities and has limited spillover effects on the local industrial chain of new factories, which are crucial for economic growth, as highlighted by Moreira.

In the past year, Brazilian President Lula held two meetings with Chinese President Xi Jinping and announced the establishment of partnership relations in various fields. Meanwhile, the high tariffs imposed by U.S. President Trump on Brazil have exacerbated the trade war between the two countries.

Chinese companies are working to expand their operations in Brazil and other developing economies, gradually withdrawing from the U.S. market. Tulio Cariello, a researcher at the Brazil-China Business Council, stated, "Last year, Chinese investments in the U.S. amounted to only $2.2 billion. This is a trend resulting from geopolitical tensions."

Nevertheless, according to relevant data, the United States remains the largest source of foreign direct investment in Brazil, injecting $8.5 billion in investment funds into Brazil last year.

From 2015 to 2019, Chinese companies averaged $6.6 billion in total investments in Brazil annually. Cariello explained that during that time, investments primarily focused on a few large oil and energy projects, such as transmission lines and offshore oil field exploration. Today, Chinese companies are investing in 39 projects in Brazil, covering more diverse industries, making Brazil the world's third-largest destination for Chinese investment, following only the United Kingdom and Hungary. This year, Meituan and Didi have entered Brazil's food delivery industry.

Moreira from the Ministry of Development added that many Chinese companies in Brazil still face numerous challenges, including higher costs in the industrial chain, complex tax systems, and labor regulations.