Location

Brazil

Date of Publication

2020 12:00 AM

Security Theme

Critical Infrastructure

Keywords

FDI, critical infrastructure, sensitivetechnologies, investment screening, Brazil-China

Description

As a part of the massive outflow of Chinese foreign direct investment observed in the past two decades, Brazil has emerged as a top recipient of Chinese FDI and central piece for China’s food and energy security strategies. However, Chinese SOE’s acquisitions of critical infrastructure and sensitive technologies have raised concerns worldwide over potential national security risks. In this context, this article aims to (i) analyze the evolution of Chinese FDI in Brazil since 2010, identifying its main drivers and trends, and to (ii) survey the global trend towards strengthening screening mechanisms for FDI, under national security grounds – identifying its implications for Brazil’s investment policy. In the context of U.S.-China trade war and technological rivalry, it is argued that restrictive measures on FDI – generally based on vague thresholds and broad definitions of critical infrastructure – have been characterized by a blurring between realistic risk assessment and geopolitical interests.

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Jan 1st, 12:00 AM

Chinese foreign direct investment in Brazil: Evolution, trends and concerns over critical infrastructure

Brazil

As a part of the massive outflow of Chinese foreign direct investment observed in the past two decades, Brazil has emerged as a top recipient of Chinese FDI and central piece for China’s food and energy security strategies. However, Chinese SOE’s acquisitions of critical infrastructure and sensitive technologies have raised concerns worldwide over potential national security risks. In this context, this article aims to (i) analyze the evolution of Chinese FDI in Brazil since 2010, identifying its main drivers and trends, and to (ii) survey the global trend towards strengthening screening mechanisms for FDI, under national security grounds – identifying its implications for Brazil’s investment policy. In the context of U.S.-China trade war and technological rivalry, it is argued that restrictive measures on FDI – generally based on vague thresholds and broad definitions of critical infrastructure – have been characterized by a blurring between realistic risk assessment and geopolitical interests.

 
 

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