Chinese investment in Brazil rose sharply in 2023, according to a new report from the Brazil China Business Council, up 33 percent to US$1.73 billion after hitting its lowest value since 2009 the year prior.
Last year saw a dip in the number of projects compared to 2022, down 9 percent to 29 in total, but the realisation of the value of Chinese investment – that is, the percentage of announced projects that were actually put into practice – rose sharply from 27 percent in 2022 to 88 percent in 2023.
The electricity and automotive sectors dominated Chinese investment, accounting for 39 percent (US$668 million) and 33 percent ($568 million) of value respectively, with electricity alone making up 66 percent of projects.
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Brazil is the ninth most popular destination for Chinese investment globally. It is the second-highest ranking South American country, after Peru in fourth place, and the highest-ranking Portuguese-speaking country.
The report also shows Chinese investment dropped across the developed world amid ongoing trade frictions with Washington and its allies – down in the US by 36 percent, in Australia by 57 percent, the EU by 4.2 percent and the UK by 4.2 percent. None remain in the top 10.
Meanwhile, China increased investment in developing nations associated with its signature Belt and Road Initiative by 37 percent. This shift in focus has Brazilian President Luiz Inácio Lula da Silva exploring potential gains from deeper collaboration with China.
