Some of China’s biggest technology firms are turning to fellow emerging-market giant Brazil to seize on growing demand for personal computers and smartphones in South America’s biggest economy.
From Lenovo Group to telecommunications giant ZTE, cash-rich Chinese hardware makers are seeking to boost their market share globally as demand cools at home. They are looking at both buying firms abroad in countries such as Brazil, or setting up their own manufacturing plants there.
Analysts and industry experts say more tech deals are on the horizon. Brazil has a fast-growing middle class whose use of smart TVs and smartphones is quickly rising. Chinese companies have the know-how to produce electronic devices at lower costs.
“There is every opportunity now for Chinese companies to work towards a global empire by adopting investment patterns that position well in the economies which are the most promising in terms of future growth,” such as Brazil, said Connie Carnabuci, Asia co-head of telecoms, media and technology practice at international law firm Freshfields Bruckhaus Deringer in Hong Kong. “Technology and telecommunications happens to be an area where China has well-established export players such as ZTE and Lenovo, so the synergies are obvious.”
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