Chinese are keeping an eye on Brazil

Shein, Tiktok and 99 are already well known here. The three Chinese companies are not the only ones aiming for Brazil. Amid restrictions on the United States and the stagnation of the economy of Chinathe companies are keeping an eye on our country as the next large consumer market.

For example, Meituan, China’s largest food delivery company, announced an investment of $ 1 billion (more than $ 5.5 billion) to settle in Brazil – and may be a major competitor to iFood. THE Digital Look Already gave details about this fight here.

Don’t stop there. Mixue, a Chinese teas and dessert company that has already surpassed McDonald’s as the world’s largest fast -food network, has also announced a cash jackpot to operate in our country. There is also Tiktok Shop, released a short time ago (learn more In this link).

The cases mentioned are not punctual. In May, President Luiz Inacio Lula da Silva traveled to Beijing to the Brazil-China Business Forum and took the opportunity to meet with executives from local companies. The meeting resulted in the announcement of billionaire investments from the Chinese in Brazil.

THE OD detailed all companies that pledged to apply money here, including car names, renewable energy, pharmacist and delivery (like Meituan, with the Keeta app). See the full list of companies and their respective investments In this link.

China wants to expand market and Brazil has become the target of Chinese companies. Why?

THE The New York Times explained some of the reasons.

With ‘tariff’ imposed by US President Donald Trump and the growing trade war between the two countries, selling to the US market is becoming more expensive.

This causes an internal problem. According to Vey-Sern Ling, Singapore’s share consultant at the Union Bancaire Privée, Chinese companies are “finding the most difficulties in growing internally.” In response, comes the need for international expansion as a way to maintain growth.

In addition, the very stagnation of the Chinese economy is slowing down the advance there.

But why Brazil?

While China intensifies competition with the United States, it approaches Brazil. Lula’s trip to Beijing and the meeting with President Xi Jinping narrowed commercial ties between the countries.

Analysts consulted by Nyt They stated that the good relationship of nations gave Chinese companies confidence to bet on Brazil. This includes the investment of about $ 4.7 billion from companies in the Brazilian market.

Meituan (deliveries), Mixue (fast food) and GWM (automotive sector) were some of them. Others are already consolidated here, such as 99, Tiktok, Shein and Temu.

Chinese companies don’t just want to invest in Brazil: they want to master it

According to experts, Chinese companies that want to operate in Brazil are not just intended to expand their market. They want to master it.

According to Heatherm Huang, co -founder of Measuable AI (Hong Kong technology company that analyzes online purchasing data for financial companies), when Chinese go abroad, profit is not the goal. The priority is to master the market first.

For example, Meituan operated in China with a loss for years, offering great discounts to overcome the competition. When the company decided to expand its performance to Hong Kong, with the Keeta application (which should arrive in Brazil), did the same. The result: it took out of the market for Deliveroo, one of the main delivery platforms that already existed there.

The same is true of Temu and Shein: they offer gigantic discounts that can exceed 70%to attract consumers and overcome competition. This is not just a profit, but of dominance.

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There are challenges

Chinese companies have great hopes in Brazil, but some factors can still be challenging here:

• Brazil is taxing imported purchases of up to US $ 50, depending on whether the e-commerce site participates in the referral program as or not;
• There is also the Tax on Circulation of Goods and Services (ICMS), proportional to the value of the product;
• In addition, the Chinese have raised concerns about the work regime of the delivery, with exaggerated hours and little rest, and handling user data.