Brazil takes advantage of US-China dispute

As Brazil tries to reap rewards from the US-China trade fallout, São Paulo governor João Doria is leading a delegation to China to attract more investments.

“We are taking 35 Brazilian companies to make direct contact with international investors. In addition, we will open our InvestSP office in Shanghai, China, next Friday,” said Doria (in photo).

“The office will be a point of support for Brazilian companies, located in São Paulo, in the export of products and services. In addition to supporting the government in the privatization program, which is a significant part of the relationship agenda with China,” he added. 

Doria’s agenda for the week in China focuses on areas other than commodities, where China already has significant investments. 

“Even though raw materials are still fundamental in this relationship, the targets currently are in the automotive industry, telecommunications, unconventional energy and financial services. São Paulo is a global state, and China plays a key role in warming the economy, creating jobs and income,” state secretary Julio Serson, who is part of the delegation, said. 

The visit of Doria’s São Paulo delegation, comes amid rising tensions in the US-China trade war. 

In recent years, China has invested heavily in Latin America and gained much influence. But with Jair Bolsonaro, who favors the US under Donald Trump, Washington could also regain some clout.

The Bolsonaro administration already announced free trade talks with the US. 

Last week, US commerce secretary Wilbur Ross visited Brazil and underscored US interest in Brazil’s infrastructure segment.

On the occasion, representatives of both governments signed a memorandum of understanding.

As a result, Brazilian infrastructure will receive funding from US development finance institution OPIC.

“The MOU recognizes the interest of both parties in working together to fund Brazil's priority infrastructure projects. That includes facilitating bilateral business and investments through the International Development Finance Corporation (IDFC),” Ross said during an infrastructure event in Brasília last week.

PARANÁ VISIT

On Friday, OPIC representatives met with officials of Paraná state. 

“There will be many opportunities for those who want to invest in Paraná. As the state government cannot afford to invest alone in infrastructure investments, it will work with the private sector to get these works off the paper,” vice-governor Darci Piana said.

"We are strengthening our relationship with all countries that want and understand that Paraná is the best state to invest in Brazil," he added.