Report: Brazil Firms Losing On Home Turf To China

The National Confederation of Industries says that 45 percent of Brazilian companies surveyed say they're losing business to Chinese competitors in Brazil

BRASILIA, Brazil (AP) -- A new survey shows Brazilian manufacturers are losing ground to Chinese imports.

The National Confederation of Industries says that 45 percent of Brazilian companies surveyed say they're losing business to Chinese competitors in Brazil.

CNI polled 1,529 firms in October, focusing on metal products, leather, shoes and textiles.

The Brazilians complained of what they call China's undervalued currency.

That makes Chinese imports into Brazil cheaper.

CNI official Flavio Castelo Branco said Thursday that China's lower production costs are also hurting Brazilian firms.

Brazil maintained a $5 billion trade surplus with China last year, mostly because of commodity exports. Officials worry Brazil is not competitive in manufactured goods.
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