Home Business Chinese invested US$ 20.9 billion in Brazil in 2017

Chinese invested US$ 20.9 billion in Brazil in 2017

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Chinese investments in Brazil  reached $20.9 billion in 2017, the highest level since 2010, when recession  pushed down asset prices and attracted investors. In 2017, energy, including oil, agriculture and logistics where the sectors which drew the most Chinese capital.

Later this month, officials from Brazil and China are scheduled to meet to assess eight pre-selected projects to be supported by the Cooperation Fund for the Expansion of Productive Capacity created in 2017 with US$20 billion.  Newspaper Valor reported that the Ferrograo Project (a railway linking Sinop, in  state ofMato Grosso to Miritituba in  state of Para)  and a steel plant in Maranhao, in partnership with CBSteel, are the most likely to receive financial support from the fund.

The newspaper also said that a decision on China Railway Capital and China Railway First Group becoming involved in line 6 of the São Paulo metro should be made in January. The two Chinese groups, associated to Japanese company Mitsui, intend to replace the previous consortium that started the work but never completed it.

The auction in 2018 for the construction of the West-East Integration Railway (Fiol) in Bahia and the construction of the South Port of Ilhéus to transport cargo carried by rail are also among the projects in which private companies from China have shown an interest.

In 2017 China State Grid purchased CPFL Energia, China Merchants Port acquired the Paranaguá Container Terminal in Paraná, the State Power Investment Corporation (Spic) took control of the São Simão hydroelectric plant and HNA took over control of the airport of Galeão, in Rio de Janeiro.