Source: “Brazilians Are Going Gaga For Chinese Brands,” The Economist, July 2, 2026.
Commentary: In recent years, the United States and Europe have increasingly implemented defensive policies, shielding themselves from Chinese foreign direct investment (FDI) to protect their domestic firms. As such, Chinese firms have pursued developing nations as their target markets for investment. Brazil has become a hotbed for Chinese investment, with more than $6 billion in incoming Chinese FDI in 2025, accounting for over 10 percent of China’s total FDI that year. Major firms across advanced industries have invested heavily in Brazil, with carmakers BYD and Geely, smartphone manufacturer Huawei, and electronics producer Hisense all becoming ubiquitous in Brazil as a result. In October 2025, BYD opened a $1 billion factory in Brazil on the site of a former Ford plant, making it the company's largest plant outside Asia. Great Wall Motors, another Chinese auto manufacturer, began production at a former Mercedes-Benz factory in August. Storage batteries, a technology dominated by Chinese firms, are now viewed as the next investment opportunity, with BYD and several other firms planning large-scale investments in battery production in Brazil.