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Why Chinese Companies Are Betting Big on Brazil
Discover why Chinese companies like TikTok, Meituan, DiDi, and BYD are investing billions into Brazil. Explore the political, cultural, and economic factors fueling China’s strategic push into Latin America.
Peeyush Jain
June 29, 2025
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Why Chinese Companies Are Betting Big on Brazil
In the past year, there’s been a noticeable surge in Chinese companies expanding into Brazil. From ride-hailing to food delivery to bubble tea and electric vehicles, Brazil has become a prime target. But why now? And what makes Brazil different from other international markets?
In May 2025, TikTok Shop officially launched in Brazil. Meituan, China’s largest food delivery platform, announced plans to enter with a $1 billion investment. Mishiru, the world’s largest F&B chain by store count (and a bubble tea giant), plans not only to open stores but also to set up factories in Brazil.
They’re not alone. DiDi, one of China’s biggest mobility companies, has been active in Brazil for years and recently re-entered the food delivery market. Notably, they never dismantled their fleet—over 700,000 delivery drivers remained on standby, now ready for redeployment.
This wave isn’t limited to tech or F&B. Chinese EV manufacturers like BYD and Great Wall Motors are also expanding aggressively into Brazil—and with surprisingly little backlash.
Why Brazil? Three Big Factors
1. Political Alignment and Trust
One major driver is politics. Brazil’s current president, Luiz Inácio Lula da Silva (Lula), is seen as extremely friendly to China. He’s visited China multiple times (his fourth trip was just this month), and during his latest visit, numerous MOUs and business agreements were signed.
Lula’s backstory also resonates deeply in China. A former laborer who lost part of a finger in an industrial accident, he symbolizes the underdog—something culturally admired across Asia.
Executives consistently cite “good relations” as a top reason for entering Brazil now. In an era where Chinese firms often face political resistance in the U.S. and EU, Brazil represents a safe, friendly, and receptive market.
2. Favorable Public Perception
According to surveys published by The Economist, citizens in Latin American countries generally view China more favorably than the U.S.. In countries like Brazil, Argentina, and Colombia, many people believe China treats them with more respect than Western powers.
This mutual goodwill translates to smoother market entry. As one exec noted, when people like you, they’re more likely to try your app, buy your car, or drink your bubble tea.
3. Economic Complementarity
The trade relationship is already massive. Brazil exports around 30% of its goods to China, including soybeans, iron ore, beef, and coffee—essential inputs for China’s manufacturing and food industries. In return, China exports electronics, machinery, and increasingly, cars and consumer products.
Brazil runs a trade surplus with China, meaning it exports more than it imports—another reason local sentiment is generally positive. Brazil also buys commercial jets from Embraer, the third-largest aircraft manufacturer globally.
Bubble Tea, Coffee, and Cultural Resonance
Beyond economics and geopolitics, there's a cultural element to all this. In a lighthearted anecdote, a Chinese executive recalled asking several Brazilian colleagues what they missed most about living in Asia. The unanimous answer? Bubble tea.
That matters. Brands like Mishiru aren’t just launching shops—they’re building factories. Brazil, the world’s largest coffee producer, is becoming a base for Chinese F&B giants looking to blend local and Asian tastes.
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Building Locally, Not Just Expanding Globally
One notable evolution from earlier waves of Chinese international expansion: this time, companies are building with local teams. Past attempts often stumbled due to a lack of cultural understanding. Today’s wave is more nuanced. Chinese companies are:
Hiring and empowering local managers
Respecting local work rhythms and regulations
Maintaining their technical edge (data, engineering) from China while adapting locally
This blended model helps them scale faster and avoid many of the cultural clashes that plagued earlier global forays.
Cars, EVs, and Fridges in the Backseat
EV makers like BYD, Geely, and Great Wall are betting heavily on Brazil. While Chinese car brands face political scrutiny in Western markets (often under the guise of “safety concerns”), Brazil welcomes them. Why?
Brazil has many auto plants—but no dominant local car brand. In a market hungry for affordable, feature-packed vehicles, Chinese EVs make sense. They also promise jobs, which matters politically.
A viral video from Lula’s recent China trip shows him test-driving a Chinese EV, swerving with glee while executives laugh. Social media lit up with remixes and memes—demonstrating not just product interest, but genuine affection for the moment.
What Comes Next?
This isn’t a short-term trend. Brazil is poised to be the launchpad for Chinese businesses in Latin America—especially in e-commerce, food, and EVs.
While cultural differences still exist, both sides seem eager to work together. As BRICS countries (Brazil, Russia, India, China, South Africa) push for more economic collaboration, Brazil could become China’s most important partner in the Global South.
As global alliances shift, Brazil and China may well become the blueprint for how East meets West in business—with bubble tea, football, and EVs leading the charge.
Interested in learning more about how Chinese firms operate? Check out our previous coverage here:
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Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.
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