Many Chinese companies are now courting the country’s more than 200 million consumers
For the Chinese ice cream and beverage chain Mixue, which already has more stores than Starbucks and McDonald’s, a cheerful snowman mascot on São Paulo’s most famous avenue signals a new phase of its global expansion.
The first Brazilian unit of Mixue 2097.HK, opened on Saturday, marks the company’s arrival in South America amid a new wave of Chinese investments, built on economic ties that have already displaced the United States from its position as the continent’s main trading partner.
But, unlike previous waves of resources that China directed to Brazil, concentrated in large hydroelectric and oil projects, Many Chinese companies are now courting the country’s more than 200 million consumers.
The focus on expanding into international markets occurs as the China faces rising trade barriers in the United Statesthe main consumer of its global exports.
Chinese direct investment doubled to US$4.2 billion in 2024 in 39 projects in Brazil, making the country the third largest recipient of Chinese investments in the world, according to the latest data available from the Brazil-China Business Council (CEBC).
Furthermore, the Mixue plans to invest around R$3 billion in the country in the coming years, where it will sell lemonades, jasmine teas and ice creams.
Mixue intends to open between 500 and 1,000 stores in the country by 2030including franchisees, said Mixue Brasil CEO, Tian Zezhong.
The fast-food chain joins Chinese companies ranging from delivery apps and electric vehicle makers to electronics producers which are betting on Brazilian consumers becoming increasingly receptive to Chinese brands considered competitive in terms of price and quality.
“Once you start consuming products from China, it is very difficult to go back to consuming others, precisely because of the cost-benefit, the quality and because they are differentiated products in terms of beauty and delivery”, said Bianca Gunes, 30 years old, strolling in front of the new Brazilian Mixue store in Shopping Cidade São Paulo.
Cutting-edge technology
Chinese electronics manufacturer Huawei It is located in a privileged location at the entrance of the same shopping mall. After almost three decades in the country, Huawei opened its first store in São Paulo last yearrecognizing Brazilians’ demand for in-person shopping experiences, said the public relations manager for the company’s consumer business in Brazil, Diego Marcel.
“Brazilians really like technology. He likes it, but he is also very demanding,” said Ricardo Bastos, director of institutional affairs at Chinese automaker GWM, which opened its first plant in South America in São Paulo last year.
Both GWM and Chinese competitor BYD acquired Brazilian factories from Western rivals in recent years and are retooling them for the production of electric and hybrid vehicles.
The GWM plant in a former Mercedes-Benz factory is expected to receive R$10 billion in investments over a decade.
Executives say the Relations between Brazil and China are benefiting from both a slowdown and a stimulus. Geopolitical tensions have driven Chinese investment away from the United States, while President Luiz Inácio Lula da Silva praises relations with China at a historic level.
“The president (Lula) convinced our CEO that Brazil would be open to our investment,” said BYD senior vice president Alexandre Baldy in an interview with Reuters in February. “From then on, of course, the company, being a private and publicly traded company, took off due to its ability to achieve.”
The Brazilian government is also looking to import advances in healthcarewhere China showed new applications for artificial intelligence. Health Minister Alexandre Padilha told Reuters he went to Shanghai, Shenzhen and Chengdu last month looking for possible partnerships, investments and technology transfers.
On another front, country newcomer Meituan 3690.HK is betting it can shake up Brazil’s already busy meal delivery market. The company aims to invest US$1 billion by 2030 to challenge a field that includes Amazon partner Rappi and iFood, owned by Dutch company Prosus.
*Estadão Content
