Chinese electric vehicle (EV) manufacturer BYD is set to invest $600 million in building a new complex in Brazil to produce electric and hybrid cars, as well as electric buses and trucks. This move comes as China and Brazil strengthen their economic ties. BYD's plan to open an industrial complex in Bahia state is seen as a political victory for Brazilian President Luiz Ignacio Lula da Silva, who aims to "reindustrialize Brazil with support from China."

Western car companies, such as Ford and Mercedes-Benz, have left Brazil in recent years, but Chinese carmakers are filling the gap as part of China's expansion into the global automobile market. Mauricio Santoro, a political scientist, says that Brazil's non-aligned foreign policy and absence of geopolitical tension with China make it an attractive location for Chinese companies to establish themselves and expand into other South American markets. Additionally, Brazil's emerging middle class provides opportunities for Chinese manufacturers.

BYD's investment in Brazil and the tax incentives it received from the Brazilian government reflect the strong trade relationship between China and Brazil. China has overtaken the United States as Brazil's top trading partner. However, experts caution that there are challenges ahead, including China's slowing economy and geopolitical tensions with other world powers.

While BYD's investment in Brazil is seen as a positive development, experts question whether the Chinese company can make enough profit to justify its presence in the country in the long term. The infrastructure to support electric vehicles in Brazil is also underdeveloped, requiring further planning and investment.