On the occasion of the 50th anniversary of the establishment of diplomatic relations between China and Brazil, the Joint Action Plan of the China-Brazil Business Council defines the direction of deepening cooperation in the next five years. At present, many Chinese enterprises have already made a breakthrough in the Brazilian market.

Source: Photograph Network

China-Pakistan trade continues to prosper, action plan for the next five years released

A few days ago, the "China-Brazil Business Seminar" and the "China-Brazil Entrepreneur Committee 20th Anniversary Annual Meeting" were successfully held. The chairmen of the China-Brazil Entrepreneur Committee signed the "China-Brazil Entrepreneur Committee Joint Action Plan" (hereinafter referred to as "Action Plan"), clarifying that in the next five years, China and Brazil will deepen cooperation in economy, trade, services, agriculture, environment, science and technology, etc, promote technological and industrial cooperation in the fields of information technology, artificial intelligence, aerospace industry, new materials, etc.

According to the Action Plan, China and Pakistan will establish a regular communication mechanism to explore the expansion of bilateral trade and investment flows in terms of quantity and quality, and increase trade and investment in high value-added and technology-intensive areas.

Ma Xiuhong, president of the China Council for the Promotion of International Investment, said at the meeting that under the multilateral framework of the United Nations, the BRICS and the G20, China-Pakistan economic and trade relations have become a model of mutually beneficial cooperation among major developing countries. it has injected stable positive energy into the development of the world economy.

According to data from Brazil's Ministry of Development, Industry, Trade and Services (MDIC), Brazil's trade exports to China reached US $105.75 billion billion in 2023, making China the first trading partner country in Brazil's foreign trade history to export more than US $100 billion. Heron Blandon, director of foreign trade statistics and research at MDIC, said that the export volume of iron ore in 2023 was particularly bright, with the total export value of iron ore and its concentrates increasing by 5.5.

According to Chinese customs statistics, the bilateral trade volume between China and Brazil in 2023 was 181.53 billion billion US dollars, an increase of 6.1 percent over the same period last year. China has become Brazil's largest trading partner for 15 consecutive years, and the bilateral trade volume has exceeded 100 billion US dollars for six consecutive years.

In the first four months of this year, trade between China and Pakistan continued to grow, with bilateral trade reaching 51.5 billion billion U.S. dollars. Among them, Brazil's exports to China increased by 8.8 year-on-year to US $32.7 billion; China's exports to Brazil increased by 14.5 year-on-year to US $18.8 billion.

Among the main commodities exported by Brazil to China, soybeans, crude oil and iron ore are firmly in the top three, accounting for nearly 80% of Brazil's total exports to China. Exports of beef and pulp to China also maintained steady growth. Cotton exports jumped 1295 per cent and 1288 per cent, respectively, making it Brazil's sixth largest export to China.

Among Brazil's main imports from China, automobiles and spare parts grew brightly, with imports of complete vehicles reaching US $7.62 billion billion, up 372 per cent year-on-year. In addition, imports of vehicle seat belts increased by 343 per cent year-on-year, gearboxes by 115 per cent, anti-collision bars by 86 per cent and wipers by 67 per cent.

Which A- share companies take root in Brazil

According to data from the Passenger Association, in April 2024, China's exports of pure electric and plug-in hybrid vehicles to Brazil soared 13 times year-on-year, reaching 40200 vehicles. Brazil has surpassed Belgium to become China's new energy vehicle for two consecutive months. The largest export market. In the first four months of this year, China's car exports to Brazil totaled 106400, an increase of 536 percent over the same period last year; specifically in the field of new energy vehicles, the export volume was 85500, an increase of more than 9 times over the same period last year.

great wall motor (601633.SH) has entered the Brazilian market since 2021. haff H6 has become the best-selling hybrid vehicle in the first year of its entry into the Brazilian market, with haff H6 GT accounting for more than 33% of the sales volume, occupying the championship position in Brazil's new energy market segment for several consecutive months. In January 2022, Great Wall Motors officially took over the Ila Semapolis plant in Brazil and began operations in May 2024. It is expected to create more than 4500 jobs when it is fully operational.

BYD (002594.SZ) passenger cars have entered the Brazilian market since 2022, and recently ushered in an important milestone in the grand opening of the 100th dealer store. At present, BYD's sales network in Brazil has covered 39 dealer groups, 100 existing stores and 135 designated outlets. In April this year, the company officially delivered the cloud rail first train of Brazil's Sao Paulo Metro Line 17, and the production base complex set up in Brazil officially started in March. The production line of new energy passenger vehicles covers pure electric and plug-in hybrid vehicles, with a planned annual production capacity of 150000 vehicles.

In the first four months of this year, BYD, Chery (CAOA Chery) and Great Wall Motor took a total of 6.96 per cent of the market in Brazil, according to data from Brazil's National Automobile Distribution Federation. Chery is the first Chinese car company to build a factory in Brazil, and the Brazilian factory is also Chery's first overseas-owned vehicle factory, which was officially completed in August 2014.

in the automotive industry chain, Fuao shares (000030.SZ), Taixiang shares (301192.SZ), Hongxin Technology (301539.SZ) and other companies have successfully opened up the Brazilian market, Tenglong shares (603158.SH) and other Brazilian subsidiaries.

CRRC recently signed a franchise contract for the north axis project of the Sao Paulo intercity railway in Brazil, which will provide the project with multi-system full-life solutions such as EMUs, communication signals, power supply systems, and field equipment. In April this year, the board of directors of CRRC (601766.SH) approved that its subsidiary CRRC (Hong Kong) Co., Ltd. and COMPORTE of Brazil jointly invest in the establishment of a PPP project company for the north axis of the intercity railway in Sao Paulo State of Brazil. CRRC invested 0.851 billion reais and held 40% of the shares, or about 1.229 billion yuan.

atlas (688472.SH) has become Brazil's main supplier of photovoltaic modules. its Brazilian subsidiary was established in 2012 and achieved revenue of 0.656 billion yuan and net profit of 56.8217 million yuan in 2023.

In the photovoltaic industry chain, the products of Goodway (688390.SH), Shangneng Electric (300827.SZ), Huaming Equipment (002270.SZ), Deye Stock (605117.SH), Yuneng Technology (688348.SH) and other companies are also sold to Brazil in batches.

Luoyang Molybdenum (603993.SH) is Brazil's leading phosphate fertilizer producer, holding a 100 per cent interest in Brazil's CIL phosphate ore and NML niobium ore. In 2023, the company's Brazilian niobium phosphorus business achieved revenue of 6.311 billion yuan and net profit of 0.987 billion yuan.

pengdu agriculture and animal husbandry (002505.SZ) has successively acquired Brazilian grain traders Fiagril and Bela. relying on Fiagril and Bela, the company has controlled nearly 7 million tons of grain resources in Brazil. In 2023, the company's total pesticide exports increased by 30% year-on-year, and continued to maintain the first place in pesticide exports from domestic non-production enterprises to Brazil. Bela won the highest annual award of the Brazilian Agricultural Service Company.

Zhongtian Technology (Rights Protection)(600522.SH) is one of the earliest cable companies in China to enter the South American market. As early as 2014, the communication cable products produced by Zhongtian Brazil factory were favored by Brazil World Cup and Rio Olympics. Now the 10th anniversary of the establishment of Zhongtian Brazil factory, Zhongtian Technology's products have covered most of the mainstream communication operators in South America.

in addition, yi zhimi (300415.SZ), new land (000997.SZ), longping high tech (000998.SZ), mobile communication (603236.SH), connie electromechanical (rights protection)(603111.SH), dema technology (688360.SH), zhongke micro to (688211.SH), haomai technology (0025S95.SZ9) and many other subsidiaries have been established in Brazil a shares.

at this "China-Brazil business seminar", Guo jinji, chairman and chief executive officer of lucky coffee (L K.O), signed a memorandum of cooperation on behalf of lucky coffee and representatives of Brazil's export and investment promotion agency, and signed a letter of intent with partners for lucky coffee and multi-supplier coffee procurement in Brazil, planning to purchase a total of about 120000 tons of coffee beans from 2024 to 2025 from relevant coffee producing areas in Brazil.

ruixing coffee is one of the largest chain coffee brands in China, with a total of 0.23 billion customers by the end of 2023 and a total of 19000 stores. Brazil is one of the countries with the largest coffee production and export volume in the world. In 2022, Luckin Coffee signed a three-year purchase plan to purchase about 45000 tons of coffee beans in Brazil. According to data from the Brazilian Coffee Exporters Committee, China bought 1.518 million bags of coffee in 2023, while only slightly more than 414000 bags were purchased in 2022.