Background on the Situation
Brazil has witnessed a growing and diversified interest from Chinese investors amidst U.S. President Donald Trump’s attacks on both countries. Analysts suggest that the strengthening relationship between Brazil and China could be another factor explaining the high tariffs imposed by the U.S., which in turn is likely to bolster Chinese investment in Brazil.
Investment Figures and Trends
In the first half of 2025 alone, China invested $379 million in direct investment for capital investments in Brazil, surpassing the annual amount recorded since 2018. These figures are sourced from Brazil’s Central Bank.
Capital investments include foreign capital entering Brazil for the purchase or expansion of shares in companies, excluding a company’s own reinvestment of profits.
From January to June 2025, China ranked as the tenth-largest investor in Brazil based on this metric, marking the best performance for the country since the series began in 2001. The U.S. leads, but ahead of China are countries known for hosting Chinese companies’ headquarters, like the Netherlands, or traditional tax havens, such as Luxembourg, Panama, and the British Virgin Islands.
Expert Insights
Stephen O’Sullivan from Mattos Filho’s Corporate Law and M&A department states, “Official figures may not accurately reflect the volume of activity we observe in Chinese companies since investment often does not come directly from China.”
He cites an example of a transaction involving a Chinese group, but with a direct shareholder based in the Netherlands.
“It’s not straightforward to get a clear picture just from the numbers, but I would say that Chinese demand has increased,” O’Sullivan affirms.
Legal Advisory and Recent Transactions
Mattos Filho advised a Chinese cement company in the acquisition of one of Brazil’s largest quarries and a Chinese company that won the federal oil auction in June.
Key Questions and Answers
- Q: Why is Chinese investment in Brazil on the rise?
A: The growing interest from Chinese investors can be attributed to U.S. President Donald Trump’s attacks on both Brazil and China, which has led to a strengthening relationship between the two countries. This, in turn, is likely to bolster Chinese investment in Brazil.
- Q: What do the investment figures indicate?
A: In the first half of 2025, China invested $379 million in direct investment for capital investments in Brazil, surpassing the annual amount recorded since 2018.
- Q: How does China’s investment ranking in Brazil compare to other countries?
A: In the January-June 2025 period, China ranked as the tenth-largest investor in Brazil based on capital investment metrics. However, countries like the Netherlands and traditional tax havens such as Luxembourg, Panama, and the British Virgin Islands rank higher.
- Q: What do experts say about interpreting investment figures?
A: Stephen O’Sullivan from Mattos Filho notes that official figures may not accurately reflect the volume of activity in Chinese companies, as investment often does not come directly from China.
- Q: What recent transactions highlight Chinese investment in Brazil?
A: Mattos Filho advised a Chinese cement company in acquiring one of Brazil’s largest quarries and supported a Chinese company that won the federal oil auction in June.
