New commercial strategic agreements between Brazil and China

In May 2025, Brazilian President Luiz Inácio Lula da Silva led an official state visit to China, aiming to strengthen economic cooperation amid a tense global landscape. Despite ongoing trade tensions between the United States and China, President Lula emphasized that Brazil and China are "strategic partners and indispensable players" on the world stage.

As a result of this diplomatic engagement, the Brazilian government announced the signing of 20 agreements and 17 additional documents between the two nations, reinforcing collaboration across key sectors for the next 50 years. The visit also secured approximately BRL 27 billion in Chinese investments for Brazil, supported by the Brazilian Trade and Investment Promotion Agency, with a focus on infrastructure and technology.

Key Agreements Across Strategic Sectors

The newly signed agreements span a wide range sectors, including trade, infrastructure, technology, agribusiness, and sustainability. Their overarching objective is to stimulate economic growth while reinforcing environmental commitments. Key highlights include modernizing Brazil’s infrastructure sector, expanding Brazil’s exports capacity, and promoting green development, as outlined below.

Infrastructure

Brazil and China have entered into a cooperation framework aimed at deepening bilateral ties. According to the Brazilian government, this agreement initiates the first phase of cooperation, focusing on joint technological development and local production by Chinese companies operating in Brazil. The agreement also establishes forums to facilitate Chinese participation in strategic infrastructure projects, including railways, metro systems, ports, and airport concessions.

In addition, both nations signed a set of initiatives targeting Brazil's port production sector, which is expected to attract nearly BRL 5 billion in investments. According to Brazil's Minister of Ports and Airports, Chinese companies have also expressed interest in participating in major infrastructure projects, including the auction for the Santos-Guarujá Tunnel – Latin America's first underwater tunnel – scheduled for August 2025.

Cooperation also extends to the aviation sector through a partnership agreement between Brazil and the Civil Aviation University of China. This initiative is expected to facilitate technological exchanges and enhance Brazil's airport governance.

Agribusiness

Brazil also achieved a significant milestone with China’s approval to import five new Brazilian products: (i) duck meat; (ii) turkey meat; (iii) chicken giblets; (iv) peanut meal; and (v) distiller dried grains (the "DDG"), a highly valued ingredient in animal feed for pigs, cattle, and poultry.

The export of the three animal protein products alone is projected to generate over BRL 1 billion in revenue. Notably, Brazil’s entry into the DDG market marks a major shift in global trade dynamics. Until 2024, the United States dominated this market, supplying 99.6% of China’s DDG imports, according to the General Administration of Customs of China. With domestic production expected to reach up to 5 million tons in the 2025/26 cycle, Brazil aims to reshape the industry.

To further strengthen Brazil's presence in the Chinese market, Brazilian meat industry associations ABIEC and ABPA have announced the opening of a joint office in Beijing. This hub will coordinate commercial initiatives and support export promotion, ensuring steady growth for Brazilian meat exports in China.

Sustainability

Brazil and China have also strengthened their environmental cooperation by signing a Memorandum of Understanding on vegetation restoration and carbon sequestration, supporting Brazil’s goal of restoring 12 million hectares of degraded land by 2030 under the Paris Agreement. As announced by the Brazilian Government, the partnership promotes reforestation, carbon capture, and knowledge exchange, leveraging Brazil’s agroforestry expertise and China’s large-scale reforestation programs. In addition, both nations formalized the 2025-2026 Action Plan for Sustainable Mining, aimed at attracting investments in low-carbon technologies and fostering responsible resource management.

Comment

President Lula’s visit to China marked a new chapter in the long-standing Brazil–China relationship, reinforcing economic ties between the two nations. The agreements signed during the visit reaffirm both countries’ commitment to sustained cooperation, with initiatives spanning trade expansion, infrastructure development, technological innovation, and sustainable growth.

Alongside President Lula, other Latin American leaders visited China, signalling a regional push to deepen ties. Colombia’s President Gustavo Petro signed onto the Belt and Road Initiative, though Foreign Minister Laura Sarabia clarified this agreement carries no legal obligations but aims to spur investment. Chilean President Gabriel Boric also met with Chinese officials and business leaders, pledging to enhance economic cooperation.

For Brazil, this partnership opens new avenues to diversify exports, attract foreign investment, and enhance industrial competitiveness. For China, it helps consolidate supply chains, secure agricultural imports, and foster strategic partnerships across key economic sectors.

Looking ahead, President Xi Jinping’s upcoming visit to Brazil in July 2025 is expected to further deepen this collaboration. While official details are still pending, the visit is likely to strengthen bilateral engagement—particularly in Brazil’s infrastructure and investment sectors.