Home Trade exchange between Brazil and China reaches historic billion-dollar values: New data released shows that the Asian red dragon is practically “swallowing” the country in several sectors

Trade exchange between Brazil and China reaches historic billion-dollar values: New data released shows that the Asian red dragon is practically “swallowing” the country in several sectors

21 May 2024 to 10: 02
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Handshake with Brazilian and Chinese flags symbolizing international cooperation
Celebrating commercial success between Brazil and China through a symbolic handshake

In 2023, trade between China and Latin America reached US$480 billion, with Brazil as the main partner, standing out in exports of soybeans and other products.

In 2023, commercial exchange between China and the countries of Latin America reached a historic milestone, exceeding US$480 billion, according to estimates based on data from the Customs Administration of the People's Republic of China (AGA).

This value contrasts significantly with the approximately US$14 billion recorded in 2000, according to the Economic Commission for Latin America and the Caribbean (ECLAC). In the year in which we celebrate 50 years of trade relations with the Asian country, Brazil stands out as the country's main trading partner. China na Latin America.

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Trade between Brazil and China in 2023

In 2023, bilateral trade between Brazil and China totaled US$181 billion, of which US$122 billion represented Brazilian exports, resulting in a trade surplus of US$63 billion.

It commercial relationship is constantly on the rise, highlighting a scenario of opportunities and mutual progress, according to data from the Ministry of Development, Industry, Commerce and Services (MDIC) for the first quarter of 2024.

Brazilian imports from China grew on average 12,7%, reaching the US$14 billion mark, while exports to the Asian country also increased, totaling US$23 billion, representing an average increase of 9,8%. These numbers reflect an increase in commercial transactions and a favorable balance for Brazil, with a surplus of 5,5% in relation to China.

Main Products Exported by Brazil to China

Soy leads exports, representing 35,4% of Brazilian exports to China. In addition to golden grain, products such as iron ore (20,2%), frozen beef (8,82%) and cellulose pulp (3,36%) also stand out among the main exported items, according to data from the Observatory of Economic Complexity (OEC).

The trade relationship between the two countries continues to grow, with 15 bilateral trade agreements valued at around US$10 billion (R$51 billion).

Brazilian Trade Balance in 2024

According to trade balance data released in April by the MDIC's Foreign Trade Secretariat (Secex), Brazilian foreign trade recorded a surplus of US$19,08 billion in the first quarter of 2024, a growth of 22,2% compared to the same period last year (US$ 15,61 billion).

The result reflects exports of US$ 78,27 billion in the quarter, against imports of US$ 59,19 billion, totaling US$ 137,47 billion in trade in the period. Compared to the first quarter of 2023, exports grew 3,2% and the trade flow was 1,0% higher. Imports fell 1,8%.

Featured Sectors

In terms of sectors and exported products, the highlight was the extractive industry, with growth of US$ 3,22 billion (18,7%) in the first quarter of 2024 in relation to 2023. In imports, the highlight was agriculture, with growth of US$ 0,07 billion (5,6% ).

In March, despite the quarterly growth, there were declines in relation to March 2023. Exports totaled US$ 28 billion in March 2024, against US$ 32,83 billion last year (drop of 14,8%). Imports fell by 7,1%, totaling US$ 20,5 billion in 2024 against US$ 22,07 billion in 2023.

The trade flow in March 2024 totaled US$48,5 billion (-11,7%), and the surplus was US$7,5 billion (-30%).

Predictions for 2024

According to Secex, the estimate for the trade balance in 2024 points to a 1,9% growth in trade flow, reaching US$592 billion.

There was also an increase in expectations regarding imports, which are now forecast at US$259 billion (7,6%). Expectations for exports fell 2,1%, now standing at US$333 billion. The reduction in export expectations, together with the possible increase in imports, reduced the trade balance forecast for this year, which now stands at US$74 billion.

On the other hand, the fall in the prices of exported goods accelerated in March, contributing to the prospect of a decrease in the value forecast for foreign sales. Furthermore, global demand is growing slowly and there is less domestic availability of agricultural goods for export.

What Does China Buy Most from Brazil?

A China It is the main buyer of several Brazilian products, with emphasis on soybeans, iron ore, frozen beef and cellulose pulp.

Soy is the main item, representing 35,4% of Brazilian exports to China. This grain is essential for the production of animal feed in China, which is the world's largest producer of pigs and poultry.

Why Does China Buy So Much From Brazil?

A China buys so much from Brazil due to the high quality and competitiveness of Brazilian products, in addition to the economic complementarity between the two countries.

Brazil has vast agricultural areas and large reserves of natural resources, which allows it to meet China's growing demand for food and raw materials.

How is trade between Brazil and China?

Trade between Brazil and China It is characterized by a relationship of interdependence and complementarity.

Brazil mainly exports agricultural and mineral commodities, while China exports manufactured and technological products to Brazil. This relationship benefits both countries, providing economic growth and industrial development.

Which country does Brazil export the most?

A China It is the country that purchases the most from Brazil, consolidating itself as the main destination for Brazilian exports. Chinese demand for Brazilian commodities has been a crucial factor in Brazil's trade surplus and the positive trade balance between the two countries.

What does China own in Brazil?

A China has invested significantly in Brazil, acquiring stakes in several strategic sectors, such as energy, infrastructure and agribusiness. Chinese companies have important assets in Brazil, including hydroelectric plants, power transmission lines and large agricultural areas.

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