巴西

Back to the future for Brazil in Chinese investment boom

This year, China overtook the United States to become Brazil’s largest investor. In the first six months of 2010, FDI flows reached an estimated $10 billion, up from just $83 million in the same period last year.

The surge is hardly surprising given that China became Brazil’s largest trade partner in 2008. But it has sparked a public debate in Brazil. Does China’s state-led capitalism, driven by a hunger for resources and a need to export low-cost production, pose a “neocolonial” threat? Or are Chinese investors a boon to Brazil’s thriving economy?

Brazil has been here before: 40 years ago it experienced a boom in Japanese investment. That experience suggests Brasilia has to do much more to manage the Chinese investment tide.

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