As reported by China Daily, Alessandro Teixeira, deputy minister of Brazil's Ministry of Development, Industry and Foreign Trade, announced that Chinese investment in Brazil is expected to hit $9B this year, with half of it going into high-tech industries.
This marks a shift away from agriculture and mining, although on a cumulative basis the energy sector is still the largest recipient of Chinese capital.
China is now Brazil's largest trading partner, having displaced the United States in 2009. It's of interest that Brazil has enjoyed a trade surplus over the past two years despite the great Chinese export machine, and no doubt high commodity prices have played a major role.
According to China Daily, China's investment in Brazil was less than $300M in 2009, but skyrocketed to $17B in 2010, making China the largest foreign investor in Brazil. Such growth rates are unlikely to be maintained, but it is still a breathtaking example of what used to be called "south-south" integration. Now that the acronym BRIC crops up in the strategy considerations of almost every self-respecting multinational, doesn't that sound oh-so-quaint?
- China eyes Brazil's high-tech sector (China Daily)