China opens dialogue with Brazilian automakers to avoid chip shortages

China’s ambassador to Brazil, Zhu Quingqiao, informed the Brazilian government that the Asian country will open channels of dialogue with the Brazilian automotive sector to avoid the production of flex-fuel cars in Brazilian territory.

In response, the Chinese government suspended the export of semiconductors produced at the factory located in China. In this context, the Asian country and the United States announced a trade agreement that opens up perspectives for a possible resolution of the problem.

Faced with this scenario, Brazilian automakers . In dialogue with the Chinese Embassy, ​​Vice President Geraldo Alckmin addressed Brazilian companies.

“The automotive chain employs 1.3 million people and has a direct impact on other sectors, such as steel, chemicals, plastics and rubber. We still have to see how this will happen in practice, but today we took an important step so that the Brazilian automotive industry continues to grow and generate quality jobs”, says Alckmin.

To meet the sector’s request, vice-president Geraldo Alckmin met with Anfavea (National Association of Motor Vehicle Manufacturers), Sindipeças (National Union of the Automotive Component Industry), Abipeças (Brazilian Association of the Auto Parts Industry) and workers’ representatives. At the time, the automakers asked for the support of the Brazilian government, together with the Chinese government, so that Brazil is not harmed.

A modern vehicle uses, on average, 1,000 to 3,000 chips. Chips are used to process vehicle systems, being essential for electronic injection, sensors, ABS brakes, airbags, engine control, among other mechanisms.

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