Chinese investors ubiquitous in Brazil

18 October 2017

Michel Temer made an official visit to China and met the big companies in Brazil.

"With all the investments you will make in Brazil, your company should be called" Four Gorges "! "Joked Brazilian President Michel Temer after meeting with China Three Gorges boss Lu Chun as soon as he arrived in Beijing on Thursday before joining his BRICS counterparts in Xiamen.

The CTG group has already invested some 23 billion reals (about 6 billion euros) in Brazil in less than five years. He has become the second largest producer of electric power, and does not intend to stop in such a good way.

CTG is not the only Chinese group to invest in Brazil's electricity sector, as State Grid has also secured the lion's share in electricity distribution and power lines, energy between the new dams in the Amazon and the large consumer market located in the south of the country.

About fifty companies for sale

Michel Temer also took the opportunity to clarify the outline of his privatization program. With under its arm a thick catalog of about fifty companies to "sell", including the Brazilian EDF Eletrobras, and more than a dozen hydroelectric power stations. "The Chinese will certainly play a leading role in the privatization of Eletrobras," said Pedro Seraphim, an energy specialist with the law firm Tozzini Freire. "It's exactly the kind of assets the Chinese love. They do not like small transactions! "Added Fernando Camargo, Infrastructure Manager at LCA Consulting.

Brazil and China recently launched a $ 20 billion fund, 75% funded by China, to modernize infrastructure in the Latin American country.

In addition, several Chinese banks have already taken over their brands, setting up subsidiaries in Brazil, such as ICBC, China Construction Bank (CCB) and Bank of Communications (BoCom).

The Chinese are now present in several sectors. Last month, the HNA group, which is a shareholder of the Azul airline and a client of the Brazilian aircraft manufacturer Embraer, entered the capital of Rio de Janeiro International Airport.

In the agri-food industry, Shanghai Pengxin Group has already secured two Brazilian tradings specialized in cereals. And that's not all: Didi Chuxing invested $ 100 million in the competitor of Uber in Brazil, 99, while negotiations are underway for the acquisition of several port terminals. Appetite comes with eating.


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