Volume 43, Number 168,
January-March 2012
Threats and Opportunities for Brazil's Trade
with China: Lessons for Brazil
Fernando Augusto Mansor de Mattos and Marcelo Dias Carcanholo

The increasing presence of Chinese products in Mercosur imports suggests that the rivalry between Chinese and Brazilian products -particularly manufacturing products- will be accentuated in this economic block in the next few years.

This situation is particularly worrying given that the Mercosur is an important destination for Brazilian manufacturing exports. Even being part of the Mercosur and being in a position to make the most of the advantages of membership has not prevented Brazilian exports to this area from suffering from the increasing competition of Chinese products.

Table 9 facilitates a similar study to the previous one, but this time with data for the aladi member countries30, which include those of the Mercosur and eight more countries. As in the previous analysis, it can be seen that Chinese imports increase between 2000 and 2010, particularly after 2005. The data shows that there was a rise in Chinese exports, particularly in low and high tech industrial goods. As occurred in the Mercosur countries, Chinese exports of these two industrial product types surpassed Brazilian imports in the aladi member countries in 2005. The difference in this case is that Chinese exports of medium tech manufacturing goods also surpassed those of Brazil.

A sign that the institutional advantages enjoyed by Brazil in the Mercosur have prevented greater expansion of Chinese products in this market is that in 2008, for example, the total Chinese exports to aladi member countries represented a 34% higher value than Brazilian exports whereas in the Mercosur they represented 18% more than Brazilian exports. Part of the explanation for this difference could also be the trade dealings recently celebrated between Peru, Chile and China, extending its presence in the aladi. Finally, the relative importance of Chinese and Brazilian products both in the Mercosur and aladi permits greater competition between Brazil and China in these markets.

30 The data in Table 9 was obtained from information relating to aladi imports, and not from a Chinese perspective. However, there are not many differences when using the data from the Chinese perspective for the purposes of this publication

Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 193, April-June 2018 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
CP 04510, México, D.F. Tel (52 55) 56 23 01 05 and (52 55) 56 24 23 39, fax (52 55) 56 23 00 97, www.probdes.iiec.unam.mx, revprode@unam.mx. Journal Editor: Moritz Cruz. Reservation of rights to exclusive use of the title: 04-2012-070613560300-203, ISSN: pending. Person responsible for the latest update of this issue: Minerva García, Circuito Maestro Mario de la Cueva s/n, Ciudad Universitaria, Coyoacán, CP 04510, México D.F., latest update: June 27th, 2018.
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