China widens lead as Brazil’s top import source

The number of Brazilian companies importing Chinese products has grown in recent years at a much faster pace than those sourcing from other major countries or regions. Today, the number of Brazilian firms that import from China is greater than the combined total of those buying from the European Union, the United States, and Mercosur.

From just 3,700 importers of products “made in China” in 2000, the figure jumped to 40,000 companies in 2024 — more than double the 18,100 Brazilian firms that imported from the entire European Union that year. From the United States, the number was 12,400. From Mercosur, 4,000.

The number of Brazilian companies exporting to China has also increased, though at a slower pace: from 700 in 2000 to 2,990 in 2024. Despite China being Brazil’s largest export market, the number of exporters is still small compared to other destinations. For example, 9,550 Brazilian companies exported to the US in 2024 — more than three times the number trading with China. To Mercosur, 11,700; to the EU, 8,590.

The data comes from a survey by the Brazil-China Business Council (CEBC), in partnership with the Ministry of Development, Industry, Commerce and Services (MDIC). The gap between exporters and importers reflects the nature of Sino-Brazilian trade, explains Tulio Cariello, CEBC’s research director and one of the study’s authors, along with Camila Amigo and Mariana Quintanilha.

Cariello notes that soybeans, iron ore, and oil dominate Brazil’s exports to China, accounting for 75.7% of sales in 2024, according to MDIC. “And which companies are behind this trade? Mostly firms in the manufacturing industry,” he says, pointing to everything from machinery to inputs for various sectors — and even small retailers, such as those on São Paulo’s Rua 25 de Março and Rio de Janeiro’s Uruguaiana, both famous for their bustling trade.

Still, diversification has increased over the years. The survey tracked the number of products Brazil exported to China from 1997 to 2024, using the Mercosur Common Nomenclature (NCM) at the 8-digit level. In that period, the range grew from 673 to 2,590 items.

Cariello stresses that diversifying exports, alongside pursuing new partners, is key, particularly amid U.S. tariff policies and their global trade impacts. “There is heavy dependence on the U.S. in some industrial sectors, and likewise, strong exposure to the Chinese market, especially in agriculture,” he warns.

Even so, micro and small companies have gained ground. Between 2008 and 2024, the number of micro and small exporters to China rose by 277% and 85.5%, respectively. On the import side, microenterprises grew sixfold to 10,970, while small importing firms jumped 3.5 times to 9,692.

Regional penetration has also deepened. Since 2008, China has topped the list of import origins in all Brazilian regions. In 2024, over 25,000 firms in the Southeast sourced from China. In the South and Center-West, dependence has grown especially for industrial and agricultural inputs; in the Center-West, the number of importers increased 33-fold since 2000.

“The growing dependence on Chinese inputs poses strategic challenges. Diversifying suppliers and strengthening domestic supply chains are crucial to reduce external risks and boost Brazil’s production autonomy,” the report says. On the export side, China was the leading market for 14 Brazilian states in 2024, and the second-largest for another four.

Imports from China have also spurred job creation in Brazil. In 2022, roughly 5.2 million jobs were tied to companies that imported Chinese products — more than double the 2.2 million jobs linked to exporters.

The survey also examined gender and racial diversity. Women remain underrepresented: in 2022, only 16.5% of exporters and 27.3% of importers had a majority-female workforce. Racial diversity has improved, with more Black professionals entering and earning more in Sino-Brazilian trade, but wage inequality remains: Black workers earn, on average, 40% less than their white colleagues. “This disparity reflects Brazilian society as a whole,” Cariello notes.

Source: Valor Econômico

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