Brazil will test its dependence on China's ghosts
Brazil is reassessing its economic reliance on China's ghost cities, which have been significant for its iron ore and oil exports.
Traditional Western perspectives view China's ghost cities—built without inhabitants and connected by roads leading to nowhere—as a waste, or at least a synthetic way to stimulate the economy. Despite this critique, Brazil has become a significant supplier of iron ore and oil for these constructions to progress. In 2025, Brazil exported about $99 billion worth of goods to China, with minerals and oil making up 40% of total exports to the country.
Recently, the Chinese government unveiled a new economic plan targeting a growth rate of around 5% annually, which is lower than the average of previous decades. This new strategy emphasizes a reduction in real estate and infrastructure investments, shifting focus toward domestic consumption, services, and technology. This signals the end of an era marked by massive Chinese construction projects and raises questions about Brazil's economic future as these ghost cities lose their relevance.
As Brazil prepares to navigate these changes, it must evaluate its market dependencies and potential impacts on resource exports. The reduction of Chinese construction activities may lead Brazil to search for diversified trade partners and adapt its economic policies to sustain growth without relying heavily on the traditional demands from China. The prospects of this economic transition will be critical for Brazil's future in the global economy.