Located in the south-eastern part of South America, Brazil is divided into 26 states and a federal district, coverings an area of about 8.515 million square kilometres and has a population of about 200 million. Brazil is a multi-ethnic country, and most Brazilians are of Portuguese and Italian descent. There are currently about 300,000 Chinese people in Brazil mainly living in Sao Paulo. Brasilia is located in the country’s Central-West region and is the capital and political centre. Sao Paulo, the country’s most populated city, with a population of about 11 million, is the industrial, commercial, financial and transportation centre of the country.
Brazil’s currency is the Real. The country implements national treatment for all foreign-owned or joint ventures companies. Foreign investment in Brazil does not need prior approval of the government; overseas investors can invest or carry out mergers and acquisitions in Brazil after the money has been transferred via the banks that engage in foreign exchange business and are registered with the Brazilian Central Bank. At the same time, the government has fewer restrictions on foreign exchange earning enterprises transferring business profits out of the country.
Brazil ranks first in Latin America in economic and market size, the economy is under continuous development and has been recognised by the IMF.
The taxation regime in Brazil is complicated. Enterprises doing businesses in Brazil are required to pay federal taxes (such as corporate income tax rate of 10％-15％), state government taxes (such as commodity and service circulation tax, i.e. Value Added Tax (VAT), at a maximum rate of 18％) and city taxes (such as social service tax, real estate transfer tax).
To promote the modernisation of domestic industries, improve employment and increase government revenues, Brazil is implementing the preferential policies to attract foreign investment. The main policies include: providing national treatment to foreign investors, favorable tax measures for some sectors with foreign investment and policy convenience and other measures concerning products for export produced by foreign-invested enterprises in Brazil. In addition, the states have the right to develop their own policies to promote local development, encourage foreign investment and reduce or exempt foreign-invested enterprises from local taxes.
|Economy and Trade||
According to the Brazilian Ministry of Development, Industry and Foreign Trade statistics, the major countries exported to are: China, the United States, Argentina, the Netherlands and Japan. The major exports include iron ore, aircraft, soybeans and soybean oil, petroleum and fuel, meat, chemical products, sugar and alcohol. While, Brazil’s major imports are from China, the United States, Argentina, Germanyand Nigeria, imports mainly include fuel and lubricants, mechanical equipment, electronic equipment, automobiles and auto parts and accessories.
According to Chinese customs statistical data, China has become Brazil’s largest trading partner, largest export destination and largest source of imports. The goods exported to China mainly include iron ore, soybeans and soybean oil, petroleum, pulp, fur and leather. While, the goods imported mainly include building materials, textiles, toys and shoes.
Import tariffs of different rates are levied on all commodities imported to Brazil. Currently, the average import tariff rate is 17％, and the import tariff rate for daily necessities is generally 20％-30％. However, a tariff rate of up to 35％ is imposed on some products (such as cars, computers and toys).
|Area Sq Km||8,547,400||8,547,400||8,547,400||8,547,400|
|GDP (US$ bn)||1,801.1||1,831.8||2,111.7||2,126.0|
|Real GDP growth (%)||-3.8||-3.5||0.5||1.9|
|Exports of goods fob (US$ m)||190,092||184,453(a)||196,187||196,649|
|Imports of goods fob (US$ m)||-172,422||-139,416||-150,142||-161,278|
|Consumer Price (end-period;%)||10.7||6.3(a)||4.4||4.5|
|Current Account Balance (US$ m)||-58,882||-23.507(a)||-26,367||-44,670|
|Exchange Rate R:US$ (end-period)||3.90||3.26(a)||3.31||3.47|
(a)Actual (b) EIU estimates (c) EIU forecast
|Main Destinations for Exports (2014)||% of total|
|Main Origin of Imports (2014)||% of total|
Trading Mainland China-Brazil Bilateral Trade (US$ 10,000)
* China’s export value from Brazil
** China’s import value from Brazil
Macao SAR-Brazil Bilateral Trade (Mop)
* MacaoSAR’s export value to Brazil
** MacaoSAR’s import value to Brazil
- Guide for Countries and Regions on Overseas Investment and Co-operation – Brazil
- Chinese Academy of International Trade and Economic Co-operation of Ministry of Commerce
- Investment Promotion Agency of Ministry of Commerce
- Economic and Commercial Counselor’s Office of the Embassy of China in Brazil
- China Statistical Yearbook 2016
- The Economic Intelligence Unit – Country Report
- The Macau Statistics and Census Department