Chinese investment in Brazil surged in 2024, more than doubling to a record 4.2 billion U.S. dollars across 39 projects including delivery applications and electric vehicles, showing a stunning 113 percent jump, according to a study issued by the Brazil-China Business Council (CEBC).
Chinese ride-hailing giant DiDi, known in Brazil as "99", has already become a key player in the ride-hailing market in Brazil.
At a September meeting with President Luiz Inacio Lula da Silva, DiDi's global CEO Cheng Wei pledged to relaunch a roughly 380 million U.S. dollars of investment in the food-delivery sector in Brazil, where home-grown start-up iFood currently commands more than 80 percent of the market.
DiDi wants to use its upper hand and experience to develop a base for growth across Latin America.
"The strategy for DiDi for the next years is to become the super app in Latam. To become a super app we need to have essential services. We already have mobility, we already have fintech. Food delivery is an essential step for us to become a super app in Brazil and then super app in the Latam market as a whole," said Wang Simeng, general manager of DiDi Brazil.
According to CEBC, in 2024, Brazil has become the third-biggest destination for Chinese investments in the world, only behind the UK and Hungary.
The electric vehicle industry is also one of the most visible of China's recent investments.
Chinese automakers BYD and GWM have just opened plants in Brazil, betting not only on the country's market but also on expansion throughout Latin America.
"We established our operation in Brazil as the main country for Latin America. Brazil has a strong automotive industry. Brazil has local base suppliers, production, also competitors. So, it's a very important strategic market in terms of production," said Ricardo Bastos, director of GWM Brazil.
The investments from large-scale companies also created an environment attracting smaller Chinese businesses.
"Medium-sized Chinese companies are approaching us more and more. This didn't happen just a couple of years ago. Some are linked to bigger groups already here, others looking at Brazil directly as a new opportunity," said Jorge Lima, development secretary of the State of Sao Paulo.
Chinese investments in Brazil double to over 4 bln USD
