End of May Globo pubished an article on the rise of China as an investor in Brazil.
Until 2006 China was an insignificant investor in Brazil with no more than 6,7 million US$ a year.
That figure went up to 82,6 million in 2009 and is skyrocketing in 2010, only in the first 3 months of 2010 China invested 359 million US$ in Brazil, putting Brazil in the top 5 of investors in Brazil (France ranked foruth with 392 million US$ in the first trimester and Holland ranks third with 675 million US$). Belgium is all down at the bottom, showing again to which extent our Belgian economy is not geared up for the new world order we are living in.
Also interesting to see is the evolution of Brazil’s major trade partners. The USA has been for the last 80 years Brazil’s principal trading partner, followed by Europe.
The Wall Street Journal reported yesterday on China overtaking the lead of the USA; China is now with more than 36 billion US$ Brazil’s biggest trade partner.
Asian players are not only interested in Brazilian oil (Statoil sold its Brazilian operations to China’s Sinochem, the biggest M&A ever between China and Brazil), they are buying into electricity transmission lines in Brazil and the Indonesian tycoon Tanoto has significant operations in Brazil and is looking to raise about 1 billion US$ in a Hong Kong IPO to further increase his holdings in Brazil.
The WSJ concuded “For the financial world in general, it is another sign of the shift of the global center of gravity, and funding, eastward”. Let’s all learn Portuguese and Chinese.
Also in Globo today the below interesting charts (below)
Graph one shows to which extent the price of Brazilian exports went up compared to the price of their imports.
The second graph shows the increase of net buying power. Whereas buying a car previously required in 2001 115 minimal wages, this is now today only 95 minimal wages.
You can find today’s column of Miriam Leitao here. Yes, I am a fan of hers; and the fact that Dilma doesn’t dare to appear on television in an debate with Miriam Leitao is proof enough for me that Serra is a far better candidate.
