Empirical Analysis Of The Relationship Between China’s Trade To Brazil And FDI

Since entered the WTO, China is becoming a big developing country which rising in theworld. China is also participating in the international economic cooperation actively through theinternational trade and foreign direct investment (FDI). Trade and investment has always been thetwo important economic variables. They influence each other, and their affect to the worldeconomy is expanding fast because of the expansions. In recent years, some developing countriesand regions become close trade partners of China. As Latin America’s largest country, Brazilalso has the huge development potential as China does. And for years, both of the two countrieshave a very close economic and trade cooperation relationship with each other. So, studying therelationship of China and Brazil’s trade and investment has a guiding importance for theireconomic and trade development.This paper firstly analysis the status of the trade and direct investment of China and Brazil,through the deep analysis of the China-Brazil trade structure, to explore the potential power of theChina-to-Brazil investment. Secondly, in this paper the statistic data of the bilateral trade as wellas China’s FDI to Brazil in period of2001-2010are selected to do the mathematical analysisrespectively for finding out that between the trade and investment the relationship is ofcomplementary or alternative. Finally, based on the solution, according to the problems whichexisting in the bilatral economic cooperation, a reasonable policy suggestion is given. Also, aprospect of the bilateral economic cooperation focusing on the trade and direct investments ismade.