China's investment helps boost economic ties with Brazil

RIO DE JANEIRO, Dec. 7 (Xinhua) -- With more and more Chinese companies coming to invest in Brazil since 2010, China-Brazil economic and trade cooperation has registered the fastest-growing bilateral relationship between major economies.

China, which became Brazil's largest trading partner in 2009 and its largest source of foreign direct investment (FDI) in 2010, accounted for 17 billion U.S. dollars out of Brazil's 2010 FDI total of 48.4 billion dollars, according to the Brazilian Society of Transnational Corporations and Economic Globalization.

But the figure was only 215 million dollars from 2001 to 2009, according to Brazil's central bank.

Large state-owned Chinese enterprises play a leading role in the investment, while China's private companies are also establishing sales networks in the South American country.

The momentum of China's investment in Brazil has continued in 2011. According to the Brazil-China Entrepreneurial Council's latest figures, Chinese companies announced 16 investment projects in Brazil in the first 10 months of this year, with a total volume of 7.14 billion dollars.

However, due to differences in culture, working styles and law, Chinese companies still face difficulties in investing in Brazil.

Sun Yanfeng, a Brazil expert at the Institute of Latin American Studies of China Institute of Contemporary International Relations, told Xinhua that Chinese companies have to conduct comprehensive research before entering the Brazilian market.