Booming trade causes friction between Brazil and China

Feb 3 (Reuters) - Blossoming trade between Brazil and China has brought benefits to both economies but also caused increasing strains as Brazilian manufacturers struggle to compete with a wave of Chinese imports.

Here are some facts about trade between the two fast-growing emerging market economies.

* Just three commodities -- iron ore, soy and crude oil -- account for more than three-quarters of Brazil's exports to China. Overall, raw materials accounted for about 84 percent of Brazilian exports in 2010, up from 79 percent the year before.

* China's imports into Brazil read like a diversified list of high-end manufactured goods: the top three last year were televisions, LCD screens, and telephones. Manufactured goods accounted for 98 percent of Chinese imports to Brazil in 2010.

* Part of Brazil's trade struggles can be attributed to the recent strength in its currency, the real BRBYBRL=. However, the real's value against the Chinese yuan BRLCNY=R has been largely unchanged during the past 12 months.

* Of the 140 anti-dumping cases that Brazil opened in the first nine months of 2010, more than one-third of them were against China. Brazilian President Dilma Rousseff's new government, which took office on Jan. 1, has vowed to increase the amount of anti-dumping cases against China.

* Brazil has lost market share to China in major trading partners such as Argentina. Brazil accounted for about 31.6 percent of Argentine imports in 2010, down from 35.8 percent in 2005. China's market share in Argentina nearly tripled during that time, to about 12.7 percent.

Sources: Brazil's Trade Ministry, Brazil's National Industry Confederation

Brasilia | Thu Feb 3, 2011 2:16am EST

Editing by Kieran Murray

Source: reuters.com