This document compares the scale of foreign direct investment (FDI) and research and development (R&D) intensity of local firms in China and Brazil. It finds that in Brazil, the scale of FDI is inversely proportional to the R&D intensity of local firms, meaning higher FDI is linked to lower R&D by local companies. The document then examines whether this same relationship exists between FDI scale and local firm R&D intensity in China.