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High production capacity, low prices and a strategic focus on Brazil mark a new phase of international trade. Experts point out that the country needs to prepare for the mass arrival of Chinese products.
The intensification of the tariff war between China and United States is causing a reconfiguration in international trade, and Brazil is emerging as one of the main targets for the expansion of Chinese products.
With the imposition of new tariffs by the US on items imported from China, Chinese companies are accelerating their search for new markets, and Brazil appears as a strategic destination.
Experts warn that, given this scenario, the country needs to prepare to absorb this movement, ensuring competitiveness and innovation to avoid losses to the national industry.
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China eyes Brazil with redoubled attention
Brazil has been viewed with great interest by China, not only because it is a traditional business partner, but also because of its market potential.
With over 200 million inhabitants and continental dimensions, the country is seen as an opportunity for the entry of products with added value — mainly in sectors in which China has high technological competitiveness.
According to Vitor Moura, a specialist at the Observa China network and founder of the consultancy Lantau Business Answers, the US tariff pressure has only accelerated a movement that was already underway.
Chinese companies were already looking outwards, especially given the slow recovery of domestic consumption after Covid. The trade war has only reinforced this strategy, says Moura.
Focus on products with higher added value
Unlike what happened previously, when trade between Brazil and China was dominated by low-cost commodities and electronics, the new focus of Chinese companies is on final products with higher added value.
This includes technological items, household appliances and even industrial equipment.
“What we have seen is a very strong movement of medium-sized Chinese companies wanting to enter the Brazilian market,” explains Moura. “These are companies that previously depended almost exclusively on the United States and are now diversifying.”
This new profile of import requires special attention from Brazilian authorities, as the impact could be significant for sectors that still face difficulties in productivity and innovation.
Obstacles and challenges for Brazilian industry
Although the arrival of Chinese products brings advantages such as diversity of supply and more affordable prices for the end consumer, the movement also represents a challenge for the national industry.
The Chinese production model, which is highly competitive and heavily invested in cost reduction, makes direct competition difficult.
Jesse Guimarães, vice president of Bracham (Brazilian Business Association in China for Industry, Commerce and Technology), emphasizes that it is necessary to act strategically. Brazil needs to use this movement as an opportunity to adapt. It is not possible to compete directly in terms of cost and scale, but we can invest in partnerships, innovation and the tropicalization of technologies, he suggests.
Market opening and innovation as a path
For experts, the key to Brazil not falling behind is to encourage innovation and openness to strategic partnerships. Instead of treating the entry of Chinese products as a direct threat, it is possible to transform the scenario into a path for industrial and technological development.
This is the time to create public policies that encourage startups, small industries and research centers. We need to prepare ourselves for a more globalized and competitive market, Moura emphasizes.
Furthermore, access to foreign trade must be facilitated for Brazilian companies of all sizes, balancing the balance and allowing the country to also become an exporter of value-added products.
New panorama of international trade
The tariff war between the world's two largest economic powers may be far from over, and the repercussions of this will continue to be felt in several countries.
In the case of Brazil, the mass entry of Chinese products could represent both a threat and an opportunity, depending on how the country positions itself.
With the strengthening of trade relations with China and the arrival of new players in the national market, the scenario demands increased attention, assertive policies and a development plan that places Brazil at the center of the new global trade route.
