Tiếng Việt
中文 (中国)
Since the start of 2024, Brazil has conducted several anti-dumping investigations against products originating from China. It is anticipated that with Chinese businesses facing challenges in trading with the largest economy in Latin America, this will be a good opportunity for Vietnamese enterprises to replace them and establish long-term and sustainable cooperation with Brazil.
The Brazilian Ministry of Industry has initiated at least 6 anti-dumping investigations against Chinese products ranging from steel sheets, coated steel to chemicals, and tires in a short period.
One of the most recent investigations was carried out at the request of CSN, a major steel manufacturer in Brazil. According to CSN, from July 2022 to June 2023, imports of various types of carbon steel sheets, particularly from China, increased by nearly 85%. Importing large quantities of these items has preliminarily been identified as causing damage to the domestic steel industry.
The Brazilian Ministry of Industry has received requests and initiated an anti-dumping investigation on carbon steel sheet imports from China. Representatives of Brazilian steel manufacturers have requested the Brazilian government to impose taxes ranging from 9.6% to 25% on imported steel products.
Significantly, this anti-dumping investigation of Brazilian steel products has particular significance as this Latin American country is one of the world’s largest iron ore exporters. Exporting iron ore while importing steel partly demonstrates the instability of Brazil’s economy, lacking the technical capability to self-supply essential materials in construction despite possessing vast raw resources.
In addition to steel, domestic manufacturers in Brazil have also requested the initiation of investigations into imported chemical products and tires from China. According to official data, imports of industrial chemicals such as phthalic anhydride from China increased by over 2,000% in quantity from July 2018 to June 2023. During the same period, Brazil’s tire imports also increased by over 100% to 47 million units, with about 80% coming from China.
The influx of cheap chemical imports poses a serious risk to Brazil as this event is unprecedented throughout its history of establishment and development. Depending on essential items from other countries not only makes Brazil vulnerable but also applies to any other country susceptible to fluctuations.
Brazil and China have developed commercial relations, with China being Brazil’s largest trading partner and a significant buyer of its exports such as soybeans and iron ore (in 2023, China purchased 70% of Brazil’s total soybean exports). In 2023, Brazil exported over $104 billion worth of goods to China while importing $53 billion.
Although Brazil’s policy is to avoid trade tensions with China, this move is seen as following a global trend as many other countries have also increased anti-dumping investigations against China recently.
China’s exports increased by 7.1% in the first two months of 2024, far exceeding the growth rate of imports. In addition to Brazil, China’s steel exports to Vietnam, Thailand, Malaysia, and Indonesia have also increased significantly in recent months.
According to analysis by global economic organizations, China’s economy has reached a saturation point in domestic demand. To address product surpluses, China is aggressively promoting exports to other countries. One measure Beijing could take is to actively devalue the Chinese currency, thereby stimulating imports of Chinese products by international businesses.
This is a policy China has used many times in the past because when the value of the Chinese currency decreases, the currency of other countries can buy more Chinese products. This monetary policy has been condemned many times by other countries, accusing China of engaging in unfair competition, leading to the risk of trade tensions between China and other economic powerhouses such as the United States, the EU, and others.
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