Foreign direct investments of China in Brazil: the presence of Chinese firms in the Brazilian economy over the centuries XX and XXI

Abstract

The aim of this study is to document the evolution of Sino-Brazilian economic relations, with special attention to mapping the evolution of Chinese business performance in the Brazilian economy over the 20th and 21st centuries. To this end, this work sought to situate the economic relations between these countries in terms of trade and foreign direct investment, using conventional data. The original contribution consists of analyzing the data from the Federal Revenue of Brazil on the National Register of Legal Entities (CNPJ) to identify the sector-detailed presence of Chinese companies over time. The results of this study indicated that the pattern of Sino-Brazilian economic relation has changed throughout the years, becoming quite complex. Some predominant trends were observed: i) the Chinese business activity is quite diversified in terms of sectors; ii) the manufacturing industry and financial activities are the sectors that mostly stand out; iii) the Chinese activity in speculative financial activities was identified, as well as many Chinese holding companies of non-financial institutions; iv) several Chinese companies operate in key-sectors of the fourth industrial revolution and in tertiary sectors (wholesale and retail). Finally, this work sought to shed some light on these sectorial patterns.