China’s total direct investment in Brazil reached US $ 117 billion in 2017. Almost half of these resources were concentrated in the areas of energy, mining and agribusiness, according to the Ministry of Planning.
If Chinese companies have so far preferred to buy consolidated assets, the expectation for 2018 is that they will become interested in new projects – so-called greenfield projects – in particular in the area of infrastructure.
For investments in these new areas, investor companies should use resources from the Brazil-China Fund for Productive Capacity Expansion, created in 2017 and with resources of US $ 20 billion.
In January 2018, Brazilian and Chinese officials will meet in Brasilia to evaluate eight pre-selected projects, among which Ferrograo (a railroad linking Sinop (state of Mato Grosso) to Miritituba (Para), and a steel mill in Maranhão, in partnership with CBSteel. Also in the list, the participation companies China Railway Capital and China Railway First Group in line 6 of the São Paulo subway.
Another project that may arouse Chinese companies’ interest is the West-East Integration Railway (Fiol), which crosses the interior of Bahia, and the construction of the South Port of Ilhéus to drain cargo transported over the rails