How does FDI in Brazil differ from that in China?

Brazil has not created a special class of business vehicles for FDI, but allows foreign investors to participate freely in the general group of business vehicles available to all investors in Brazil. There is no special permission or screening required in Brazil. FDI is regulated chiefly through Profits Remittance Law and Brazilian Tax codes. This is generally justifies through two policy goals:  (1) The need to regulate and control the exodus of foreign hard currency that is used to repatriate foreign capital and to make payments such as dividends, interest, and royalties to a foreign investor located in a foreign nation and (2) the need to ensure that foreign companies pay their fair share of taxes on any payments that are remitted to a foreign national so that foreign investors do not exploit Brazil by earning unfairly high profits.

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