A major shift is underway in how Chinese companies are investing in Brazil, with businesses now targeting everyday consumers rather than focusing solely on massive infrastructure developments.
The ice cream and beverage company Mixue, which operates more locations globally than McDonald’s or Starbucks, launched its inaugural Brazilian store on Saturday in São Paulo. The opening represents the brand’s entry into South America and reflects a broader transformation in Chinese investment patterns across the region.
This consumer-focused approach represents a departure from previous Chinese investment strategies in Brazil, which primarily concentrated on large-scale hydroelectric projects and oil industry ventures directed by Beijing. Today’s wave involves diverse Chinese companies actively pursuing Brazil’s consumer base of over 200 million people.
This strategic pivot comes as Beijing faces increasing trade restrictions from the United States, historically China’s primary export destination, prompting Chinese firms to seek alternative international markets.
According to Brazil-China Business Council data, Chinese direct investment in Brazil reached $4.2 billion in 2024, spanning 39 different projects and making Brazil the world’s third-largest destination for Chinese investment.
Mixue plans to invest approximately 3 billion reais ($590 million) to establish its presence in South America’s largest economy, selling lemonade, jasmine tea and frozen treats under its distinctive cartoon snowman branding.
Company executives project opening between 500 and 1,000 Brazilian locations by 2030, including franchise operations, according to Mixue Brazil CEO Tian Zezhong.
The food chain joins numerous other Chinese enterprises, including delivery platforms, electric vehicle manufacturers, and electronics companies, all betting on Brazilian consumers who have embraced Chinese brands for their competitive pricing and quality.
“Once you start buying Chinese products, it’s very hard to switch back to others because of the value for money, the quality, and how they stand out in terms of design and delivery,” said 30-year-old Bianca Gunes, walking past Mixue’s new location at Shopping Cidade São Paulo.
Chinese technology giant Huawei occupies a prominent storefront at the mall’s entrance. Despite operating in Brazil for nearly three decades, Huawei only opened its first São Paulo retail location last year, responding to Brazilian shoppers’ preference for hands-on product experiences, explained Diego Marcel, the company’s consumer business PR manager in Brazil.
“The Brazilian consumers really like technology. They like it, but they are also very demanding,” said Ricardo Bastos, head of institutional affairs at Chinese automaker GWM, which launched its first South American manufacturing facility in São Paulo state last year.
Both GWM and fellow Chinese automaker BYD have acquired Brazilian manufacturing plants from Western competitors in recent years, converting them for electric and hybrid vehicle production.
GWM’s facility, located at a former Mercedes-Benz site, is scheduled to receive 10 billion reais in investment over the next decade.
Business leaders describe the strengthening Brazil-China relationship as driven by both external pressures and mutual attraction. Geopolitical tensions have redirected Chinese investment away from the United States, while Brazilian President Luiz Inacio Lula da Silva celebrates China relations as reaching unprecedented levels.
“President (Lula) convinced our CEO that Brazil would be open to our investment,” BYD’s senior vice president Alexandre Baldy told Reuters in a February interview. “From there, of course, the company, being a private, publicly-traded firm, took off through its own execution capabilities.”
Brazil’s government is also exploring Chinese advances in healthcare, particularly artificial intelligence applications. Health Minister Alexandre Padilha traveled to Shanghai, Shenzhen and Chengdu last month seeking potential partnerships, investments and technology transfers.
While Brazilians have adapted to low prices and extended delivery periods from Chinese e-commerce platforms like AliExpress and fashion retailer Shein, newcomer Meituan believes it can disrupt Brazil’s competitive meal delivery sector.
The company plans to invest $1 billion by 2030 to compete against established players including Amazon partner Rappi and iFood, owned by Dutch company Prosus.
