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

In Table 6 the increase between 2005 and 2010 in the import coefficient for the four types of products selected can be clearly seen. This represents an increase in the share of imports in apparent Brazilian consumption for each product type. In percentage terms, the most significant increase was in the technology intensive sectors, followed by labor intensive sectors, then scale intensive. In the first of these three, the contribution of Chinese imports to increasing the influence of imports (from all countries) in apparent consumption was nearly 63%; in the case of labor intensive sectors, the contribution of Chinese imports was nearly 51%.

We can conclude from this data that Brazilian industry has been increasingly affected by a process whereby domestic production is substituted by imported products. The substitution of internal demand can be seen by the increase in imported products in apparent consumption in various sectors. China's contribution to this process has increased significantly in recent years. In two of these years, the contribution to the increase in the share of imports in apparent consumption, surpasses the contribution of all other countries in the world. The increasing influence of Chinese imports is particularly apparent in technology intensive and labor intensive sectors (Table 6). The penetration of Chinese imports has had a significant impact on employment in Brazilian industry, on value creation in technologically more sophisticated sectors and of course on value added within the structure of Brazilian industry.


To complement the above, an additional study can be carried out, highlighting Chinese influence on trade in Mercosur and aladi member countries, compared to the performance of Brazilian exports in these same economic blocks. This analysis can be conducted based on data supplied by comtrade on the internet, permitting a comparison of the performance of Chinese and Brazilian exports in Mercosur (Table 7) and aladi member countries (Table 9) in the last ten years, as well as the contribution of each to imports within these economic blocks.

Table 7 shows the value of the respective percentage contribution of each product category to total Chinese and Brazilian exports in the Mercosur in 2000, 2005, 2008, 2009 and 2010. Similarly (Table 9) further along shows the data for Chinese and Brazilian exports to aladi member countries.

26 The data for the tables in this section was obtained from the eclac site, with information from comtrade. See: http://www.eclac.org/comercio/ecdata2/index.html. The data for aladi in this study refers to aladi 12, which includes the following member countries: Argentina, Brazil, Bolivia, Chile, Columbia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela.

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PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 195 October-December 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,
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