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China’s Biggest Export: Cash

Recently, China has been making strong ties with another BRICKM nation, Brazil. China last year dislodged the U.S. last year as Brazil’s principal trading partner for the first time in almost 80 years, amid a sudden surge in Chinese demand for Brazilian iron ore. Trade has tripled over the past five years.

Many Chinese Investment bankers are looking into Brazil to fund projects for oil, gas, roads, railways and more iron ore. The abundance of capital in China is a rising trend, and even though the Chinese lack expertise in international banking, it has not stopped them from doing business there.

Chinese bankers are bypassing Wallstreet and knocking on the door of Sao Paulo businesses. Deals involving Brazilian assets are slowly following. Norwegian state oil company Statoil last month said it sold 40% of a large oil field off Brazil to China’s Sinochem for $3.1 billion, the biggest ever M&A transaction between China and Brazil, according to Dealogic. State Grid of China is in the process of buying stakes in companies that own transmission lines in Brazil in the second-biggest cross-border deal, totaling $1.7 billion.

With the current lack of love between the United States and Brazil, China could be sweeping in on this strong BRICKM nation and wooing it for some lucrative commodity projects.

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Disclosure: no positions