Brazil losing to China

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Brazilian manufacturers are losing ground to Chinese imports according to a new survey in the Latin American country.

The National Confederation of Industries says that 45% of Brazilian companies surveyed say they're losing business to Chinese competitors in Brazil. CNI polled 1, 529 firms in October 2010, 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 that China's lower production costs are also hurting Brazilian firms. Brazil maintained a $5bn trade surplus with China in 2010, mostly because of commodity exports. Officials worry Brazil is not competitive in manufactured goods. Meanwhile, Brazil's government said the country's industrial output in 2010 posted its biggest increase in more than two decades. The country's official statistics bureau said industrial production rose 10. 5%, the biggest increase since the 10. 9% registered in 1986. The 2010 figures were in sharp contrast to those of 2009, when output shrank 7. 4%. The bureau said the 2010 results were mainly due to a 20. 8% increase in the production of capital goods. Industrial production in December was 2% higher than in the same month one year earlier.

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