Trade relations between Brazil and China in 2021
Since the 1990s there has been a strengthening of economic closer ties between Brazil and China, thus, according to the World Trade Organization (WTO), between 1995 and 2005, trade relations between these two countries were five times greater than in the previous years. Thus, it is possible to observe that Sino-Brazilian bilateral relations have been getting closer and closer, since between January and May 2021 Brazil accumulated a surplus of US$ 27.1 billion, with only Brazilian transactions with the Asian country represented US$ 19.1 billion, an increase of 19.8% compared to the same period in 2020. That is, 70.4% of the country's total balance in that period, according to the Trade Indicator bulletin Abroad (Icomex) released by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV Ibre).
Brazil-China trade highlights
Thus, China is currently represented as Brazil's main trading partner. The Icomex bulletin highlighted that Chinese participation in Brazilian exports had an increase, between the period from January to May 2020 and 2021, of 1.5%. In addition, there was also a positive variation of 1.4% in the volume of exported products. Furthermore, the values released by the Foreign Trade Secretariat (Secex), totaled between exports and imports around U$ 54.614 billion in the first five months of 2021.
Thus, the Asian country also stood out for having been the final destination of the three products that govern the Brazilian export basket: soy, iron ore and oil. From the data presented by the Icomex bulletin on the analysis by type of industry, it is clear that in 2021, with a growth of 10.3%, the Brazilian manufacturing industry leads the increase in exported volume. However, Brazil also exported a large quantity of products such as: sugar and molasses, beef and poultry and cellulose.
In addition, looking at imports, it is possible to analyze, according to data from Icomex, that the value in this area rose about 20.9%, with an increase of 17.4% in the quantity of products compared to the period from January to May 2020. Thus, these data also show that the greater variation in export prices compared to import prices resulted in a 20.4% increase in the terms of trade between the analyzed periods of 2020 and 2021.
The opportunities in this market and the importance of the assistance of an international consultancy
In this way, it is possible to conclude that, based on these exposed values related to bilateral trade relations that took place between China and Brazil, during the period from January to May 2021, they will cause the Sino-Brazilian trade flow to end the year with a balance in excess of about US$ 102,500 billion, according to Secex. Thus, the extreme advantage of exporting to China is clear, due to its high acceptance of Brazilian products. However, this vast market needs to be carefully studied and for that, prior planning is necessary when exporting, making a satisfactory Market Identification and Market Analysis essential, as they contribute to a more assertive and efficient internationalization.
By Brenda Ferreira on 06/07/2021
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