Chinese investment in Brazil surged by 33% in 2023, reaching a total of US$1.73 billion, according to a recent study released by the Brazil-China Business Council (CBBC). Despite a slight decrease in the number of confirmed Chinese projects—from 32 in 2022 to 29 in 2023—this year marked the third-largest investment volume since 2007.

A significant portion of the investment, 39%, was directed towards Brazil’s electricity sector, amounting to US$668 million. These funds predominantly targeted renewable energy sources, including wind, solar, and hydropower projects, reinforcing the global push towards sustainable energy solutions.

The automotive sector also saw substantial growth, with Chinese investment increasing by 56% compared to 2022, totaling US$568 million. This increase underscores the expanding presence of electric vehicle (EV) manufacturers in Brazil. Notably, all Chinese automotive projects in Brazil since 2021 have focused on the production of electrified vehicles.

Companies like Great Wall Motors (GWM) and BYD have been at the forefront of this expansion, establishing and scaling up their operations to produce electric and hybrid vehicles for the Brazilian market. According to Tulio Cariello, research director at CBBC, while Chinese companies have been active in Brazil’s EV sector for some time—BYD has been producing electric buses in São Paulo—the establishment of consumer-focused vehicle manufacturing plants marks a significant increase in overall investment.