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Honored Advisor

China investing in Brazil

Maybe someone else can provide a link, but I recently read that China's investing in Brazil has hit a seven year high.   While Brazil enjoys an export advantage over the U.S. ,  I'm wondering how long Brazil will put up with China's manipulation.  Or, maybe it's not manipulation.  I certainly have absolutely no proof of this, but I have a feeling that there are huge amounts of money being exchanged under the table so China gets what they want.  

Perhaps they will never have a problem with China "owning" much of Brazil's industries, but perhaps they will.   What happens then?    Thoughts?

 

And perhaps we as Americans should wake up and smell the same things happening here.   

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10 Replies
Honored Advisor

Re: China investing in Brazil

You hear so much about Brazil how squatters have rights, if they pitch a tent in the middle of your field you have to farm around them and if a piece of machinery breaks down, a hiredman has to stay with it or it`ll get striped of parts.

 

Their economy is always on the verge, inflation, pollution, high crime, trucker strikes.   Now many want to go back to a "strongman" dictator.  Seems to be a developing country that will be "developing" 20 years from now.  Maybe a influx Chinese cash will change things, I doubt it, China looks out for China.

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Honored Advisor

Re: China investing in Brazil

It is a safe haven for writing and commentary. No way to be  proven wrong.,..Like blaming human pollution for my cooking  mistakes.

 

Or the fery godmother.  China is just a good catch all blameee.

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Senior Contributor

Re: China investing in Brazil

reuters and Bloomberg have a bunch on this.

just google it up.

china is building a new port in BR....sounds like a lot is to load beans out of.

there was going to be a new rail road out of the BR interior over to the ocean ports too.

 

it all makes some sense. Mo.

so China invests in a pile of BR infrastructure.

 

the USA and other governments Also invest in other countries....that's how the world works.

 

so trump may not like China....he can take a long walk off a short pier too....and that's exactly what's happening.

 

 

btw China has a sovereign investment fund...has for years...bout $500Billion generally.

they been buying Brazil for decades now.

 

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Veteran Advisor

Re: China investing in Brazil

Yes, China has been investigating for a few
Years...this came out in some intelligence a
Couple years ago. The kernal is to develop
A steady, economical supplier.
In case you can't figure it out, or a member
Of the trump cult...this is bad for us....and
Trump's hissy fit, is causing them to step
Up development plans.
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Frequent Contributor

Re: China investing in Brazil

do your research before commenting... I've written about china here before... blaming traders, china, and anyone else for that matter... but never looking from within the administration placing tariff, putting the wrong people at the EPA, the guy running it lobbied for coal and oil companies before who took charge... now you think he cares about biofuels?  Come on!

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Advisor

Re: China investing in Brazil

Not just in Brazil, but Africa.  One of the world's largest processing plants built there, with long term leases on land to produce commodities only available to Chinese companies importing the stuff.

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Honored Advisor

Re: China investing in Brazil

Sol,so we must buy $400 billion more from China than they buy from us in order for them to CONSIDER buying farm commodities at usually less than our cost of production?   And if they find it somewhere cheaper, they`ll buy it there.  With friends like that....

 

Those of you worried about China getting big into the raw farm commodity production.   Economics 201 states that a raw commodity settles below cost of production over time and rises only if there is a production problem ie, corn goes up in a drought ect.

 

So if China has a brain in their head, why would they want to get in a business whose product costs more to produce than they can buy it 90% of the time?

Veteran Advisor

Re: China investing in Brazil

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Honored Advisor

Re: China investing in Brazil

That makes more sense, WCMO.   However, to own a port in Brazil with trucker strikes and always an election away from it being nationalized and going the way of Venezuela, they better have thoughts of making their money up front.  

 

This idea of China being a untiring super stud....I don`t know about that, a few years ago we were talking about "Chinese ghost cities", they were just built to keep up the façade of 8% GDP growth.

 

https://www.forbes.com/sites/kenrapoza/2015/07/20/what-will-become-of-chinas-ghost-cities/#19eef3482...  

 

What Will Become Of China's Ghost Cities?

 
Kenneth Rapoza
385,500 views
 
 

Little did we know that most of that iron ore being shipped to Guangzhou from Rio de Janeiro and Port Hedland, Australia was going to build Chinese cities; cities that would remain vacant for years. China single-handedly topped the phrase "bridge to nowhere" and made ghost cities a euphemism for lousy development planning in the world's No. 2 economy. Anyone can build a useless overpass, but it takes China to build a city for a million people with no buyers in sight.

The naysayers loved the Western media's discovery of China's ghost cities. It was evidence that China's growth of the last 20 years was based on building things nobody needed or wanted. This was planned obsolescence on a grand scale. And now that the economy is slowing, what will become of those cities? Many of them are debt burdens carried by the developers who haven't sold a single unit.

From shopping malls to soccer stadiums, hundreds of new cities in China are largely empty. And yet more cities are still being built deep in the heart of the country. All in hopes that its rural population will one day move to a flat in a city without a mayor. It's plausible, of course. That's because over the next 15 years, the country's urban population will be 1 billion; three times that of the United States.

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