Affordable Air Conditioners Drive Surge in Popularity of Chinese Brands in Brazil

Air conditioners

BRAZIL: Brazilian consumers are increasingly drawn to Chinese products, particularly air conditioners, which are becoming more prominent on retail shelves. Their low prices are fueling strong market appeal and growing demand. The economic ties between the two countries are deepening, underscored by Brazilian President Luiz Inácio Lula da Silva’s visit to Beijing this week, where he met with top Chinese officials, including President Xi Jinping. Lula described the trade relationship as having "limitless potential." 

Following Donald Trump’s election, Chinese companies ramped up exports to Brazil, flooding stores with home appliances and electronics. Well-known brands that originally focused on TVs and mobile phones, such as Hisense, TCL Electronics, and Midea Group, began diversifying their offerings to include products like dishwashers, washing machines, and refrigerators.

This expansion highlights how Trump’s trade war has reshaped global retail strategies. Facing high tariffs and inconsistent trade policies in the U.S., Chinese firms are pivoting toward Latin America to capture new markets.

In Brazil, local manufacturing helps Chinese brands remain competitive. Many companies take advantage of the tax-free zone in Manaus, a city in the country’s north, where a large share of Brazil’s electronics are made. This special economic zone offers significant tax incentives, giving domestically produced Chinese goods a pricing edge over imports. Meanwhile, the U.S. and China have agreed to a 90-day pause on new tariffs, aiming to negotiate a broader trade agreement during that period. 

Source: Bloomberg