China is increasingly turning to South America for mutually beneficial trade as Washington’s scattergun policies prove self-defeating
Amid an intensifying trade and tech war with the United States, China’s economic ties with Brazil have grown significantly. From soybeans and corn, and beef to iron ore, Chinese importers are increasingly switching from the US to South America’s largest economy. But both sides are moving beyond commodities, and rapidly diversifying into finance and banking, and hi-tech.
A high-profile delegation of more than two dozen Brazilian entrepreneurs and heads of family offices was led by BTG Pactual, one of the country’s largest banks, on a tour of Beijing, Shanghai, Shenzhen and Hong Kong.
The roadshow followed a visit by President Luiz Inacio Lula da Silva to Beijing last month to strengthen bilateral ties. The two nations are founding members of Brics. It makes sense for prominent institutions such as BTG to look for investment opportunities in China, including the possibility of setting up shop in Hong Kong. In 2022, bilateral trade amounted to US$150 billion, a 37-fold increase from 2001. It hit US$181.5 billion in 2023. China is Brazil’s largest trade partner, and accounts for more than 70 per cent of the latter’s exports of soybeans and more than 40 per cent in pulp and crude oil.
