China's investments in Brazil have changed to infrastructure and energy from raw materials and
industrial sectors, according to Brazilian daily newspaper 0 Globo.
"There is a kind of evolution of Chinese investment in Brazil. We have already been in a third
wave. It started in the energy sector with China's State Grid, and now there is much interest
in railways," the newpaper quoted Guilherme Billi, head of the trade-promotion sector at the
Brazilian embassy in Beijing, as saying.
The State Grid Corporation of China has invested more than $1 billion to construct and manage
power transmission projects in Brazil. Chinese investors are also very interested in railways
and "all the large railways groups in China want to operate in Brazil," added Billi.
In August, China Railway Eryuan Engineering Group Co Ltd qualified to develop a feasibility
study for the transoceanic railroad between Sapezal and Porto Velho, linking Brazil to the
Pacific Ocean.
Chinese investments in Brazilian railways are regarded as a win-win scenario, benefiting the
Chinese companies and helping Brazil transport goods to China. Transportation logistics are a
main problem for Brazil when it comes to exports.
"Chinese companies have gone to Brazil to know the laws and rules, but are still waiting for
the auctions and bids," said Belli, adding that all of China's major railway companies want to
work in Brazil, from supplying trains and manufacturing locomotives to the administration of
railways.
China has been Brazil's largest trade partner since 2009, accounting for 18 percent of the
country's foreign trade. Despite a slight decrease, bilateral trade last year was $78 billion,
according to Brazilian authorities.
Brazil is so interested in Chinese investments that its National Transports Confederation set
up an office in Beijing last year, according to O Globo, to highlight business opportunities to
Chinese investors and to explain how the Brazilian market works.