1. 1
BRAZIL AND CHINA: TRADE DEVELOPMENT
AND INVESTMENTS
MR. IVAN RAMALHO, DEPUTY MINISTER
São Paulo, 23 de junho de 2010

2. 2
_______________________Presentation Overview
1. Brazilian Economy
2. Brazilian Industry and Investment Oportunities
3. Trade performance
4. Bilateral Trade

3. 3
_____________________________General Indicators
• Biggest Country in
South America
• Population: 200
million
• Territorial coverage:
8.511.965 km2
• Greatest economy in
South America and
8th
in the world

4. 4
________________________________ Brazil - 2010
General indicators:
 GDP: US$ 1,6 trillion;
 International reserves: US$249 billion;
 Public policies: macroeconomic estability, poverty
reduction and solid financial environment;
Source: IBGE/BACEN

5. _________________Brazilian Economy Dynamics
• From 2010 to 2013, US$ 735 billion are
expected to be invested in industry and infra-
structure projects;
• Pre-salt layer Programme: investment
estimate is of US$ 400 billion;
• 32 million people upgraded from low to
middle class in the last 7 years;
• In 2009, 1 million new job positions were
created;
5

6. 6
______________________________Industrial Policy
Mobilizing Programs in Strategic Areas
Health
Industrial
Complex
Information
Technology and
Communication
Nuclear Energy
Industrial
Defense
Complex
Nanotechnology Biotechnology
Programs for Consolidating and Expanding Leadership
Aeronautics
Oil, Natural Gas and
Petrochemicals
Bio-ethanol Mining Steel
Pulp and
Paper
Meat
Programs for Strengthening Competitiveness
Automotive
Complex
Capital
Goods
Textile and
Apparel
Wood and
Furniture
Hygiene,
Perfumery
and Cosmetics
Civil
Construction
Services
Complex
Naval and
Shipping
Industry
Leather,
Footwear
And Artifacts
Agribusinesses Biodiesel Plastics Toys Electroelectronics Wheat
Productive Development Policy - PDP

7. ___________________ Brazil-China Investments
• Bilateral investment flow faced a considerable
increase in last years, but is still behind the
potential of both economies.
• Outward Brazilian investments in China: led by
Embraer (joint-venture Harbin Embraer); Weg
(WEG Nantong Engines); Marcopolo and Random
Commercial Representation.
• Inward Chinese investments in Brazil: 65,5% of
chinese investments in Brazil is oriented to the
commercial sector, followed by 14,05% to the
mining sector. 7

8. __________________Brazilian Trade Performance
8
-4,1
14,8
5,7 3,7
21,1
32,1
22,6
16,3
43,6
12,9
4,8
16,9
21,7
13,9 15,7 15,6
33,4
-24,4
16,6
-22,7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
World Brazil
Fonte: SECEX/MDIC
Brazilian and World Exports Evolution
(2000-2009 / % yoy)

9. 60.439
73.203
96.677
118.529
137.807
160.649
197.942
152.995
55.483
72.093
55.119 58.287
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009
(Jan
uary-
May)
2010
(Jan
uary-
May)
__________________Brazilian Trade Performance
Exports Evolution Brazil-World
(2000-2009 and January to May-2010 / US$ million)
Fonte: SECEX/MDIC
9

10. __________________Brazilian Trade Performance
10
Special Op.; 2,1%
Manufactured; 44,0%
Basics; 40,5%
Semimanufactured;
13,4%
Exports by Product Categories
(2009 / % share)
Fonte: SECEX/MDIC

11. __________________Brazilian Trade Performance
11
2,2
4,9
5,7
10,3
22,2
13,0
10,3
23,3
25,8
Eastern Europe
Middle East
Africa
United States
European Union
LA & Caribbean except Mercosur
Mercosur
Latin America & The Caribbean
Asia
Fonte: SECEX/MDIC
Major Markets for Brazilian Exports
(2009 / % share)

12. __________________Brazilian Trade Performance
Imports Evolution Brazil-World
(2000-2009 and January to May-2010 / US$ million)
Fonte: SECEX/MDIC
55.851
62.836
73.600
91.351
120.617
172.985
127.647
46.180
66.484
55.602
47.243 48.326
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009
(Jan
uary-
May)
2010
(Jan
uary-
May) 12

13. _________________ Brazilian Trade Performance
13
Capital Goods;
23,3%
Consumption
Goods; 16,9%
Oil and Fuels;
13,1%
Intermediate
Goods; 46,8%
Imports by Product Categories
(2009 / % share)
Fonte: SECEX/MDIC

14. _________________ Brazilian Trade Performance
14
1,6
2,5
6,6
15,8
6,7
10,3
17,8
22,9
28,3
Eastern Europe
Middle East
Africa
United States
LA & Caribbean except Mercosur
Mercosur
Latin America & Caribbean
European Union
Asia
Major Supplier Markets
(2009 - % share)

15. 15
_________________Brazilian Exports to China
Source: SECEX/MDIC
1.805 1.902 2.521
4.533 5.441
6.835
8.402
10.749
16.403
20.191
8.417
10.644
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009
(Jan
uary-
May)
2010
(Jan
uary-
May)
Exports Evolution Brazil-China
(2000-2009 and January to May-2010 / US$ million)

16. 16
_______________Brazilian Imports from China
Source: SECEX/MDIC
1.222 1.328 1.554 2.148
3.710
5.355
7.990
12.618
20.040
15.911
5.679
8.759
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009
(Jan
uary-
May)
2010
(Jan
uary-
May)
Imports Evolution Brazil-World
(2000-2009 and January to May-2010 / US$ million)

17. 17
______________________________Bilateral Trade
 BRAZILIAN EXPORTS TO CHINA
2008 2009
BASICS 77,5% 76,8%
MANUFACTURED 22,4% 23,2%
 BRAZILIAN IMPORTS FROM CHINA
2008 2009
BASICS 4,3% 1,6%
MANUFACTURED 95,7% 98,4%
Source: SECEX/MDIC

18. 18
_______________ Issues for Further Development
Export potential to be developed:
Oil and fuels;
Engines;
Aircrafts;
Chemicals;
Equipments for air conditioniners;
Energy distribution equipments;
Siderurgic products;

19. _______________ Issues for Further Development
Trade Remmedies
Safeguards;
Dumping;
Subsidies;
WTO;

20. 20
_______________Issues for Further Development
China Agenda
Compendium of positive policies aimed at
enhancing bilateral trade;
Identification of potential products to be offered
to the chinese markets;
Identification of investment oportunities;
Support to public and private trade missions;
APEX office in China;

21. 21
THANK YOU
Mr. Ivan Ramalho
Deputy-Minister
Ministry of Development, Industry and Trade
www.mdic.gov.br