The escalating trade war between China and the United States seems to be opening up opportunities for Brazil, with reports indicating that China is planning to import beef and soybeans from the South American country.
China is a big market for American soybean farmers, but the Asian country will soon impose high tariffs on American suppliers as part of a retaliatory measure against the US’ own tariffs.
Brazil exports minerals and agriculture products to China, but with recent developments it is likely to also add beef to this list soon. China is estimated to import 1.2 million tons of beef this year, an increase of 23% from last year.
Brazil’s investment promotion agency, Apex Brazil, is planning to send a delegation to the China International import Expo, slated to take place in Shanghai in November, to present new Brazilian products, according to Reuters.
Li Jinzhang, China’s ambassador to Brazil, has stated this week that the two countries will take trade relationship to ‘new levels’.
China has invested US$54 billion in the South American country since 2003, according to Chinese media, with around US$11 billion flowing there in the last year alone.
Ride-hailing app Didi Chuxing’s US$297 million investment in its Latin American rival 99 is one of China’s recent investments in the South American country.
Brazil accounted for 55% of all Chinese investment made across Latin America between 2005 and 2017, according to the Economic Commission for Latin America and the Caribbean (ECLAC). China also claims that it played a pivotal role in helping the country wriggle out of recession.