“Deglobalization” is opening up opportunities for Brazil. While the country has lost ground in globalization in recent decades, the growing tension between the United States and China is triggering an adjustment in globalization that benefits Brazil. The U.S. is seeking reliable partners for the production of processing chips, reducing its dependence on China, which has created opportunities for Brazil. Additionally, China has started to require prior licenses for the export of graphite, a crucial component for electric vehicle batteries. As the third-largest graphite producer in the world, Brazil can become a valuable alternative for Western companies. With a strong industrial base and a smaller carbon footprint due to its cleaner energy mix, Brazil is well-positioned to integrate into new Western supply chains.
Source: Valor Econômico / Datamar News