Is China the saviour or captor of the Latin American country’s assets?

Açu superport near Rio de Janeiro was dubbed the “highway to China” by Eike Batista, the now disgraced former billionaire, when he founded it more than 10 years ago.

Little of Mr Batista’s Brazilian business empire survived the end of the commodities boom and he went bust in 2014 in a trail of exaggerated promises and extravagant spending. But one project that has blossomed is Açu port. Revitalised by its new owner, US-based private equity company EIG Global Energy Partners, it has become not only a highway to China but could soon be partly owned by Chinese companies.

Vallya’s Partner and Director Larissa Wachholz was interviewed by Valor Econômico, a major Brazilian business & economic newspaper, about Brazilian companies’ export efforts towards the Chinese market. The interview took place in the context of a Special Section on Foreign Trade published by the newspaper and which highlighted the role that export-promotion agencies have in helping Brazilian companies develop their international business.

Larissa drew attention to the importance of understanding the political and economic situation of the countries to which Brazilian companies wish to export. This is especially important for markets in Asia that sometimes have complex political systems that need to be clearly understood for long term business to be successful. Taking China as the best example, five-year plans are made to indicate the countries’ development priorities and the goals it will be pursuing for the coming years. If Brazilian companies want to develop business relations with China, they need to understand how the goals and priorities set by the five-year plan can affect their business. Recently, for instance, such plans indicate the Chinese government’s concern with food safety and food security, which presents a great opportunity to Brazilian food exporters.

The full article can be found below (in Portuguese language only):  

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