logo Agência Brasil
Economy

National industry loses internal market to China

Of the 15 sectors surveyed by CNI, six reported a reduction in market
Agência Brasil
Published on 02/09/2015 - 19:08
Brasília

Invalid Scald ID.

produção industrial

Of the 15 sectors with a significant number of companies competing with China in the internal market (the focus of the research), six faced a loss in their domestic market share in more than 30% of the firms. Arquivo/Agência Brasil

A survey conducted by the National Confederation of Industry (CNI) shows that 16% of industries lost some of their share in the domestic market due to imports from China. The data show a 2-percentage-point rise from the previous study, carried out in 2010.

Of the 15 sectors with a significant number of companies competing with China in the internal market (the focus of the research), six faced a loss in their domestic market share in more than 30% of the firms. Under diverse, 40% of executives reported a loss, followed by textile manufacturers (39%); metallurgy (39%); clothing (36%); IT, electronics, and optics (35%); and machinery and equipment (32%).

The percentage of Brazilian businesses that stated they import from China rose from 17% in 2010 to 18% in 2014. As for those buying final goods from China, in turn, the proportion stood at 9% in 2010 and remained virtually steady in the latest study. Companies that declared they purchase Chinese machinery and equipment went from 8% in 2010 to 9% in 2014, according to the CNI.

CNI further announced that a mere 3% of industries have their own factories in China, and another 2% partly outsource their production to Chinese firms. These numbers were steady from one survey to the other. The Brazilian businesses in IT, electronics, and optics are the ones who most resort to outsourcing, along with the shoe industry (9%).

As for the international market, competition is also tough, and more than half of Brazilian exporters (54%) compete with China in other countries. The percentage of companies that ceased to export due to competition with China rose from 7% to 11%. According to CNI data, small businesses are the ones most severely affected: 26% ceased to export, compared with 12% of medium-sized firms, and 7% of big corporations.

The study surveyed 2,146 executives from 15 sectors.


Translated by Fabrício Ferreira


Fonte: National industry loses internal market to China