Chinese investments in Brazil fell 78% in 2022, to USD 1.3 billion, the lowest value since 2009, according to a new report, which points the cause to delays in Government licenses.
However, the number of projects financed by China in Brazil reached a record figure of 32, which represents an annual increase of 14 %, according to the study, carried out by the Brazil-China Business Council (CEBC).
Half of the new Chinese projects in Brazil last year are from the electricity sector, a segment that in terms of value captures 45 % of the total amount of investments.
Second was information technology sector (25 % of the projects), followed by motor vehicles, infrastructure and agriculture (6 % each), and textiles and materials for medical and dental use (3% in each case).
Brazil fell in 2022 to the ninth place among the destinations of the investment of the Asian giant, while in 2021 it held the first position on the list. The country was passed even by another Latin American country, Argentina, which received about 1,340 million dollars in investments, according to the same report.
The fall in investments in Brazil, according to CEBC, “does not necessarily reflect China’s disinterest in Brazil”.
The report authors point out that delays in obtaining government licenses delayed the implementation of some capital intensive projects, which contributed to limit the volume of Chinese investments.
This was the case of an USD 2.1 billion investment announced by Honbridge mining company, which was halted because the environmental license was not issued, the report added.
The study indicates that there are sectors of the Brazilian economy that continue to be promising for Chinese investors, such as infrastructure, information technologies, electricity and vehicles and electric batteries.
Between 2007 and 2022, China accumulates USD 71,6 billion in investments in Brazil, in a total of 235 projects, which are mostly concentrated in the electricity, manufacturing and information technologies sectors.