China is the leading export destination for 14 Brazilian states

Of the 27 units of the Brazilian Federation, 14 had China as the leading destination of their exports in 2022.

In 11 states, the proportion of total exports was small, less than 10%.

Tocantins has the highest proportion: China was the destination of 54.1% of the state’s foreign sales.

In 2019, the last year before the pandemic, in the 1st place was Piauí: 66.1% of the total.

China also led 14 states’ exports in 2019, but the proportion of the total was higher than the country’s average in 10 states. In 2022, it was so in 8 units of the Federation.

Brazil’s exports to China in 2022 were a record US$89 billion, but the 26.8% share of the total was the lowest since 2017.

Sales to other countries grew more.

Since October 2022, Brazil’s sales to China have grown compared to the same month of the previous year.

Before that, there were five months of decline (Apr-Sep. 2022). In December, the Asian country eased restrictions against Covid-19.

ANALYSIS

The weight of Chinese purchases from the states shows how relevant the country is to the country, although its share was once higher.

President Luiz Inácio Lula da Silva (PT) will be in China at the end of March. He will try to get Chinese president Xi Jinping to increase the purchase of Brazilian products.

There are expectations of economic recovery.

That is one of the few chances to save the Brazilian GDP this year. Market analysts’ forecasts continue below 1%.

The conversation will not be easy. Uruguay is willing to negotiate separately.

The Chinese also want greater access to the Brazilian market. They are pressing for an agreement with Mercosul.

Brazil wants to ratify the treaty with the European Union, which is already more advanced.

The risk is that the negotiations with China will overrun what has already been agreed upon with the Europeans.

These are delicate negotiations, with the risk of defeat on both fronts.

With information from Poder360