Chinese by traditional companies in electric generation

With a lot of cash and strong risk appetite, the Chinese managed to unseat traditional companies in the electrical sector and have become leaders in the private generation of power in Brazil. The position is the result of a series of acquisitions made in recent years, especially during the Government of Michel Temer. According to data from the Chamber of Commerce and industry Brazil-China (CCIBC), CTG, today the country's largest private generator, invested R $44 billion ($ $12 billion); the SPIC, R $7 billion; and the State Grid, which bought the CPFL group, R $52 billion ($ $14 billion). The Brazilian Government, 2009 here, nearly half of Chinese money invested in Brazil was for the electricity sector. But this movement doesn't seem very pleasing to the candidate for the Presidency of the Republic, Jair Bolsonaro (PSL), leader in the polls. He's already flagged for possible measures of constraint to the Chinese capital in the infrastructure sector. "I believe that economists as capable as Paulo Guedes (candidate's Advisor) will understand that the $ $120 billion that China invested in Brazil in recent years helped keep jobs and mitigate the economic crisis," said Charles Tang, President of CCIBC. According to him, currently six Chinese Giants are looking at assets in Brazil. Sources heard by the State believe that business can get in stand by until there is a clearer position on the subject. Experts, who would rather not identify, fear that the way business in progress, such as the sale of the Santo Antônio hydropower plant for the SPIC. Negotiations to buy the shares of Cemig and State of Odebrecht were advanced. After the Trump effect, against foreign capital, some executives decided to alert the Chinese that the same could happen here during the election campaign. So, for now, there's no stress or concern in relation to investments already made, said one industry executive. For he, who also prefers not to identify themselves, the Brazil needs foreign capital to expand the infrastructure that's far short of the needs of the population. In addition, complete the Executive, one must understand that in granting the administer Active Investor during a certain time and then it comes back to the State. The Economist Elena Landau, President of the Free party movement, goes further: "there is a mistaken understanding about water use. It's as if the owner of the plant, be it private or State, had autonomy on your water dispatch (which is defined by the National Electric System Operator). The discussion around the safety of the electric sector from the point of view of who controls power companies aren't exactly new. Sources claim that the former President Rousseff also had some restrictions on the Chinese presence in electric generation – area considered strategic for the Country. The State found that companies in China tried to buy the Network Group and Neoenergia in the past, but were barred. "It makes no sense to discriminate the origin of capital. I think he's talking to the military nationalist who has heart. Deep down, he is against the privatization of dams because it has military head, or he's following Trump without knowing exactly why, "says Elena Landau. On the market, many analysts believe that the speech of Bolsonaro to be more a strategy to convince undecided voters to vote for him.