RIO DE JANEIRO, Feb. 4 (UPI) -- Brazil's buoyant economy is suffering under the double whammy of a strong real and competition from cheaper Chinese goods that are chipping away at the Latin American country's global market share.
The impact of the strong -- some economists say overvalued -- real on Brazilian exports has been in the news since last year, but the National Confederation of Industry warned the problem of the currency's impact on export prices was compounded by rival Chinese goods wooing customers away.
Ironically, China is also Brazil's top trading partner. However
www.chaussuresenfrance.com, CNI said competition with China is costing Brazilian industry valuable market share.
A CNI survey indicated that half of Brazil's export firms are up against Chinese suppliers
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The outlook on Brazil's domestic market isn't all that promising, said the confederation. About one-third of Brazilian firms face direct competition from Chinese rivals and about 45 percent of those companies have seen their market share in Brazil fall, said CNI economist Flavio Castelo Branco.
China became Brazil's No. 1 trading partner two years ago. As the two economies surged ahead of global averages for recovery and growth after the 2008 crisis
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Both Brazil and China are members of the BRICS bloc of emerging economies that includes Russia and India and newest member South Africa.
The survey revealed a complex picture in which one out of five Brazilian companies emerged as importers of Chinese raw materials
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The Chinese dimension complicates matters for Brazilian economic planners
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While a strong real made imports cheaper it also made Brazil's own exports less attractive to foreign buyers, often forcing Brazilian traders to discount heavily to save their market share.
Brazilian manufacturers of electronics, footwear, machinery and equipment and textiles have been hit the hardest but the effect of Chinese incursion is felt across the board.
Brazilian imports from China rose 60 percent in 2010 and exceeded $25.5 billion. Brazil managed to retain a surplus largely because of a 46 percent gain in exports, which earned Brazil $30.7 billion.
Like European, North American and manufacturers, Brazilian companies have been tempted to open factories in China
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As the country grapples with issues over currency and exports, it is well-positioned in the energy sector
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Brazil's production of oil and natural gas in December surpassed the previous one-month record
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Production of natural gas averaged 2,436 million cubic feet per day in the last month of 2010, up 4.5 percent from the previous month and 14.5 percent from December 2009
leren ugg, ANP said. Offshore fields accounted for 91.4 percent of December's crude oil output and 75.7 percent of the natural gas production.
Brazilian President Dilma Rousseff has said "competitive depreciation" by the U.S. and Chinese governments is hurting economies such as Brazil.about：
