China's Investment in Brazil Plummets by 78% in 2022

31 Aug, 2023

China's Investment in Brazil Plummets by 78% in 2022

Chinese investments in Brazil, the largest economy in Latin America, experienced a staggering drop of nearly 78% in the past year, marking the lowest level recorded since 2009, as reported by the Brazil-China Business Council on Tuesday.

In 2021, Brazil emerged as the global leader in attracting Chinese investment, securing a substantial $5.9 billion. However, this strong trend took a sharp turn in 2022, with China's economic contributions to Brazil dwindling to $1.3 billion, according to a recent report issued by the organization.

Interestingly, this decline in investment doesn't signify a lack of Chinese interest in the Brazilian market. Contrarily, the number of projects initiated saw a 14% surge from the previous year, setting a new record at 32 projects. The reason behind the investment drop is attributed to the nature of the undertaken projects. Notably absent were major energy, mining, infrastructure, and oil ventures, which typically involve higher capital outlays, clarified Tulio Cariello, the research director at the council. The delay of several substantial Chinese-backed initiatives was primarily due to environmental clearance requisites.

Despite the dip in Chinese investment, Brazil's overall foreign investment landscape flourished, boasting a remarkable 95% growth to reach $90.6 billion in the same year.