Brazilian media: From soybeans and iron ore to cars, milk tea, and food delivery, China Pakistan economic and trade are quietly undergoing profound changes
On September 26th, the website of "Santa Catarina News" in Brazil reported that China has quietly and rapidly established its presence in Brazil. For many years, people have mainly learned about China's presence in Brazil through foreign trade data. Soybeans, iron ore, oil, and meat flow into the Chinese market, while machinery, equipment, electronics, and a wide variety of industrial products flow into Brazil. This model is still important, but it has been unable to fully interpret the dimensions of bilateral relations.
A rapid and silent transformation is taking place in Brazil. China is no longer just a major buyer and supplier of Brazilian commodities, but has also transformed into an investor, producer, and technology partner, and is increasingly integrated into the daily lives of Brazilian consumers. The energy, mining, automotive, e-commerce, food, digital platforms, logistics, and service industries are jointly building a new pattern of China's influence in Brazil. This transformation is silent because it is not driven by a single major event, but rather the result of dozens of companies, multiple investments, and projects advancing simultaneously. And its rapid development is reflected in some industries where Chinese brands were almost invisible a few years ago, and now the presence of Chinese enterprises is constantly increasing.
The first important stage of the relationship between Pakistan and China was characterized by economic complementarity, and now the relationship between the two sides has entered a new stage. Chinese companies no longer only want to purchase goods from Brazil or export products to Brazil. Many companies hope to produce, invest, operate locally in Brazil, and directly sell products to Brazilian consumers. This transformation can already be felt in Brazilian streets, car dealerships, shopping centers, various applications on mobile phones, and online shopping activities. The automotive industry may be the most direct manifestation of this change. The proportion of numerous Chinese car brands in the Brazilian market continues to increase, especially in the fields of pure electric and hybrid models. But the most important change is not just the increase in import volume. This strategy begins to include localized production, dealer network, technical maintenance services, financial credit, supply chain support, and research and development of products adapted to the Brazilian market. There is another strategic consideration: automobiles are transforming into a technology platform. The importance of batteries, artificial intelligence, in car electronic devices, internet technology, software, and energy management systems is on par with that of engines. And these fields happen to be several areas where China's industry has achieved rapid development in recent years.
Another sign of this transformation is emerging in a completely different field: the catering industry. For decades, most of the large international chain brands rooted in Brazil have come from Western countries, especially American brands. Nowadays, Chinese brands are gradually entering the market, and Meixue Ice City is one example. This Chinese company plans to build a huge network of stores in the Brazilian market. This case is particularly noteworthy as it showcases a new face for China: an increasing number of local Chinese brands are expanding overseas. These enterprises go global with accumulated experience in the vast domestic consumer market, mature standardization systems, supply chain control capabilities, competitive pricing, and deep application of technology.
Another important change has occurred in the mobile phones of Brazilian people, with the food delivery market becoming a new frontier for Chinese companies to explore. The entry of such platforms into the Brazilian market indicates that China's export goods are no longer just physical goods, but also begin to export technology, algorithms, digital platforms, logistics systems, and business models. This may be one of the most important yet easily overlooked changes in China's new external layout. There is also an infrastructure network that consumers can hardly see. Behind placing orders on digital platforms, it covers payment systems, distribution centers, international transportation, customs clearance, warehousing, cargo sorting, and "last mile" delivery. Enterprises relying on the Chinese ecosystem are also continuously expanding in this field.
A car factory in Bahia state, an industrial project in S ã o Paulo, the opening of a Chinese restaurant chain, the launch of a food delivery app into the delivery market, a logistics company delivering online shopping goods, and various investments in energy, mining, and infrastructure sectors - individually, these may seem like independent business projects, but when we piece together these fragments, a massive transformation becomes apparent. The relationship between Brazil and China is gradually expanding from being primarily based on trade to encompassing multiple fields such as industry, technology, finance, digital economy, logistics, and targeting end consumers. The speed of progress in this process is astonishing.
The real key question is what strategy Brazil will adopt to seize opportunities in the face of this change. In the fields of e-commerce and logistics, Brazilian companies need to understand how to integrate into the new industry chain: not only should they see China as a market, but also Chinese companies as competitors, suppliers, investors, and potential partners.
A brand new China is emerging in Brazil. Nowadays, in many cities in Brazil, cars, shopping center stores, food delivery apps, mobile online shopping, and logistics systems that deliver goods to doorstep can all see the imprint of China. China has not reduced its demand for Brazilian commodities, but has added more dimensions to bilateral relations. This is a silent yet rapidly developing change, and we must understand it. Because China is no longer just purchasing goods from Brazil or selling products to Brazil. China is investing, producing, financing, selling, and distributing in Brazil, and actively seeking the favor of Brazilian consumers. Various signs indicate that this transformation has just begun. (Author Henry Quaresma is the CEO of Business Partners Brazil and an advisor to the Brazilian Foreign Trade Association. He has served as the Executive Director of the Santa Catarina State Industrial Federation.)
On September 26th, the website "City News of Cear á" in Brazil reported that the founding partner of PBF Comex stated that Brazil's relationship with China has entered a new stage after a record breaking $171 billion in trade volume. Arselino Carado, co-founder of PBF Comex, a Brazilian foreign trade consulting company, believes that the economic relationship between Brazil and China is undergoing a transformation that has already surpassed the scope of raw material exports. The executive stated that a record bilateral trade volume of $171 billion by 2025, coupled with the growth of Chinese investment in Brazil and various changes brought about by energy transformation and trade route restructuring, is expected to open up new opportunities for the Brazilian economy.
Data shows that the total trade volume between the two countries increased by 8.2% last year. Brazil's exports to China reached $100 billion, accounting for approximately 29% of Brazil's total exports during the same period. Among them, soybean exports account for more than one-third of the total amount. In the view of this entrepreneur, the above data indicates that Brazil's current challenge is to move upstream in the value chain and seize the opportunities of the changing international trade. Carado said, "The relationship between Brazil and China has entered a new stage. The two countries are no longer just trading raw materials, but also how Brazil integrates into various value chains that are being restructured globally
Carado said that Brazil can leverage China's development achievements in the field of energy transition. According to the data from the Brazil China Business Council, Brazil will be the top destination for China's overseas investment by 2025, with over 6 billion US dollars of investment distributed across dozens of projects in Brazil. The industries that have received funding support include electricity and green energy, mining, and the automotive industry. Projects such as solar, wind, and hydropower have received nearly $1.8 billion in investment, while mining has received approximately $1.76 billion in investment. Investment in the automotive industry has grown by over 65%. Carado believes that this capital trend is directly related to China's position in energy transformation and other fields. "Nowadays, China occupies a global leading position in the battery, solar panel, and electric vehicle industries. Attracting such capital to local production, job creation, and technological cooperation is an opportunity that Brazil cannot miss
In Carado's view, the next stage of development in Brazil's economic and trade relations with China depends on whether Brazil can increase product added value, achieve market diversification, and improve its logistics system. (Author Eoran Freilet, translated by Xiao Pan)