Lula announces Brazil is open for business at contentious Chinese factory opening
- Luiz Inacio Lula da Silva proclaimed Brazil's welcoming stance for foreign businesses at the opening of a new Chinese automobile factory.
- Chinese automaker GWM plans to produce 50,000 vehicles annually by 2028, despite challenges faced by other international companies in Brazil.
- Lula's comments reflect a strategy to regain confidence from investors amidst past discontent related to labor practices and market difficulties.
In Brazil, on August 15, 2025, President Luiz Inacio Lula da Silva affirmed that the country is open to foreign investments during the inauguration of a Chinese automobile factory. As Brazil faces challenges from foreign automakers, including significant losses reported by companies like Volkswagen, GM, and Toyota, Lula's statement attempts to rejuvenate interest in the Brazilian market. This factory is part of a broader effort by China’s GWM to produce SUVs and trucks and aims to capitalize on the growing demand for electric vehicles despite high import tariffs and a history of foreign company struggles within the nation’s complex regulatory framework. In recent years, the automotive market has seen Ford withdraw from Brazil after losing almost $12 billion. In contrast, GWM is not deterred by market difficulties and has plans to manufacture up to 50,000 vehicles per year by the end of 2028. However, there are concerns surrounding the legitimacy of labor practices at other Chinese manufacturers in Brazil, like BYD, which faced accusations involving exploitation of workers. Lula’s remarks also included criticism of previous U.S. tariffs under President Donald Trump, suggesting a pivot towards China amid the complexities of international trade. The focus now falls on whether GWM will succeed where others like Ford have failed, raising discussions on Brazil's future as a hub for electric vehicles in the global market.