Asian e-commerce giant Shein will build a factory in Brazil and say it will create 100,000 jobs.
Brazil’s Finance Minister Fernando Haddad has made lemonade out of lemons.
A few days ago, he announced an end to the tax exemption for imports of low-value goods from other countries, especially China.
The Ministry of Finance wanted to abolish the rule under which international orders of less than US$50 are exempt from tax, a benefit available only to individuals.
This measure was intended to combat tax evasion by digital platforms such as Shein, Shopee, and AliExpress, which sell imported products in Brazil and have established themselves in the country.
However, this had far-reaching negative effects on the government, and Haddad had to row back and announce a working group for these companies to bring them in line with Brazilian rules.
These negotiations produced results.
Shein will manufacture its products in Brazil, making the largest country in South America a consumer market and a production economy.