Chinese Companies and Foreign Direct Investment in Brazil between 2000 and 2018

Abstract

The article aims to understand the relationship between Foreign Direct Investment (FDI) and the presence of Chinese multinationals in Brazil. To achieve its purpose, the text retrieves theoretical elements about FDI and the theories that explain the process of internationalization of companies, in order to explain the growing presence of Chinese multinationals in the country. We used data from official sources, such as the Central Bank of Brazil (CBB), UNCTAD and the Ministry of Commerce of China (MOFCOM), and from unofficial sources, such as the American Business Institute (ABI) and the Brazil China Business Council. We present some case studies of multinationals such as Sinopec (petroleum sector), Didi Chuxing (Technology/ Startup), State Grid (Electric Power) and Chery Automobile (Auto Industry), with intent to show the modus operandi of companies from different economic sectors. To analyze these companies, we used data from their websites and other information available online. As a preliminary conclusion, it can be stated that Chinese FDI in Brazil increased significantly during the 21st century, when compared to the total direct investment from other countries. The Chinese multinationals in Brazil focus their interests in search for raw materials and sale of products with greater added value.

Keywords

• Chinese companies
• Foreign Direct Investment
• Raw Material
• Market Search.