October 2011 Archives
A new channel for Brazilian sourcing from China will be opened next year when Hong Kong-based Global Sources will extend their China Sourcing Fairs to Brazil. Global Sources will team up with Milton Exhibits to stage four simultaneous events on August 14-16, 2012, at the Imigrantes Exhibition Center, Sao Paulo. The four shows will be for Electronics, Gifts & Premiums, Garments & Textiles and Hardware & Building Materials.
Prior to 2001, the year of China’s accession to the WTO, the annual value of goods exchanged between China and Brazil never exceeded USD 3 billion. Yet after this date, bilateral trade increased substantially every year, rising from USD 3.2 billion in 2001 to a full USD 56.4 billion at the end of 2010. In 2009, despite a drop in overall traded value, China surpassed the United States to become Brazil’s top trade partner. China’s leading position continued in 2010, when it accounted for 14.7% of Brazil’s total traded value for the year. Items exchanged in the two-way trade between China and Brazil are now primarily along the lines of Chinese manufactured goods for Brazilian natural resources.
China's Leading Exports to Brazil
Electronics is an obvious choice for one of the four shows, as it was the most sought after Chinese products by Brazilian consumers in 2010, comprising 31% of all Chinese exports to Brazil. This category included around USD 1.3 billion in telecommunications equipment, nearly 616,000 laptops and USD 291 million worth of static converters. Machinery, at 22% of the China-to-Brazil export total, was the number two category by value, supported by USD 281 million worth of air conditioning machinery imported by Brazil in 2010. Other top items in China-to-Brazil exports include organic chemicals (comprising 5% of China’s exports to Brazil), products of iron and steel, vehicles such as tractors and bicycles, and technical equipment.
Shift Away from Lower Value-added Items
In the last ten years, the composition of China’s exports to Brazil has shifted away from low value-added items such as clothing and toys— although these are still increasing in terms of absolute value—toward a greater emphasis on electronics and machinery. The new China sourcing fairs in Brazil only partly reflect this reality, however, as they include a mix of both higher and lower value-added sourcing items.