Lula firm largest package of agreements with China and reinforces partnership with XI

President Luiz Inacio Lula da Silva, on a state visit to China, consolidated on Tuesday (13) the largest round of bilateral agreements in his third term, with the signing of almost 30 formal acts, the announcement of $ 27 billion in investments and the reaffirmation of a strategic partnership with President Xi Jinping.

Alongside the Chinese leader, Lula defended multilateralism, criticized the US commercial protectionism and said the Brazil-China relationship “was never so necessary.” The two presidents also issued joint statements about the crisis in Ukraine and the principles of international security, advocating peaceful solutions and dialogue as instruments of conflict resolution.

Amid the worsening geopolitical tensions and the fragmentation of global chains, Lula has recalled the intense agenda maintained with China in recent months and reinforced the role of the Sino-Brazilian partnership as a stability pillar.

“Return to Beijing just six months after receiving companion XI Jinping for a historic state visit in Brasilia. The relationship between Brazil and China has never been so necessary,” he said.

The bilateral meeting takes place in a moment of increasing geopolitical instability, with the tariff war between the United States and China affecting global trade and threatening supply chains.

For Lula, cooperation with Beijing must serve as a axis of stability, built on bases of economic complementarity, solidarity in the global south and resistance to unilateralism. Xi Jinping pointed out that the sino-Brazilian friendship has “solid and lasting” bases, and that the two countries are committed to deepening their relationships on all fronts.

Chinese investments consolidate a new bilateral cooperation cycle

During the Brazil-China Business Forum, held on Tuesday, in Beijing, investments of R $ 27 billion were announced in Brazil by Chinese companies.

The highlight was the GAC Motors automaker, which will inject $ 6 billion to expand its operations and start exports to South America and Mexico. Already the giant of the meatuan delivery sector will invest R $ 5 billion in the Keeta app, with promise of generation of 4 thousand indirect jobs and 100 thousand direct.

Other contributions include R $ 3 billion from CGN in a renewable energy hub in Piauí and up to R $ 5 billion from Envision to erect the first Net-Zero industrial park in Latin America, focused on the production of green hydrogen, green ammonia and SAF (sustainable fuel for aviation).

The Mixue Ice Cream Network, with a strong presence in Asia, will invest R $ 3.2 billion to start activities in Brazil, expecting 25,000 jobs by 2030.

In the infrastructure area, mining company Baiyin Nonferrous will invest $ 2.4 billion in the purchase of the Serrote copper mine in Alagoas. New agreements are also foreseen in the areas of semiconductor (Longsys), Mobility (Didi), pharmacies and IFAS.

In his speech, Lula celebrated the confidence of Chinese investors and stated that “Brazil has legal, institutional and environmental certainty to become one of the largest sustainable industrial centers in the world.”

The president pointed out that the volume of initiatives and the speed of negotiations with China reveals not only political affinity, but also an unprecedented cooperation methodology between developing countries.

“Never such a large number of projects have been systematically discussed in such a short time. The first concrete results can already be found,” he said.

Investments announced by Chinese companies in Brazil:

• GAC Motors: R $ 6 billion for industrial expansion and exports to South America and Mexico
• MEITUAN (Keeta App): R $ 5 billion for delivery operation in Brazil, scheduled for up to 100,000 indirect jobs
• ENVISION: Up to R $ 5 billion for the construction of Net-Zero Industrial Park (SAF, Green Hydrogen and Green Ammonia)
• CGN (Chinese Energy State): R $ 3 billion for renewable energy hub creation in Piauí
• Mixue (ice cream and drinks): R $ 3.2 billion to start operations in Brazil and generate up to 25,000 jobs by 2030
• Baiyin Nonferrous: R $ 2.4 billion for the acquisition of the Serrote copper mine in Alagoas
• Windey Technology + Senai: Creation of R&D Center in Renewable Energy (Unlisted Value)
• Pharmaceutical Companies: Creation of Vaccine Excellence Center and IFAS Production Platform (Unlisted Value)
• Longsys: Investment in the semiconductor sector (unlisted value)
• Didi (owner of 99): expansion of mobility and technology operations in Brazil (unlisted value)

Infrastructure and logistics gain centrality in bilateral relations

The infrastructure -focused cooperation agenda has also advanced. According to Minister Silvio Costa Filho, Chinese construction companies demonstrated direct interest in the Santos-Guarujá tunnel auction, scheduled for August, with estimated investments of more than $ 6 billion.

In addition, commitments were signed that predict almost R $ 5 billion for modernization of Brazilian public ports.

In aviation, a partnership was signed with the University of Civil Aviation of China, focusing on the modernization of airport management. The government also negotiates the expansion of direct flights and the sale of Embraer aircraft to the Chinese market.

The goal is to transform Brazil into a regional logistics hub, linking the Atlantic to the Pacific through export corridors, with strong Chinese participation in the works of Fiol and Transnordestina.

For Minister Silvio Costa Filho, the approach to China offers not only financing and technology, but a common strategic vision about the role of Brazil in international trade.

“All the debate we made was to expand the volume of movement through our ports with the Chinese and Asian market. China is a large window of opportunities for the Brazilian market,” he said.

The update of the National Logistics Plan aims to reduce costs and accelerate the flow of grain, meat and ore production. Lula stated that “South American integration routes are more than export corridors: they are regional development vectors”. Already China stressed that it sees Brazil as an essential partner in global supply, especially in the face of the uncertainties caused by commercial wars.

Celac-China: Regional Role of China and South Global Defense

At the opening of the IV Celac-China Forum, alongside Xi Jinping, Gabriel Boric and Gustavo Petro, Lula reaffirmed the importance of Sino-Latin American cooperation for overcoming inequalities. According to him, China is already the second largest commercial partner of Celac and one of the main financiers of works in the region, surpassing the World Bank and IDB.

“Chinese support is decisive for taking from the role of highways, railways, ports and transmission lines,” said Lula.

The Brazilian president also argued that integration with China should boost innovation and regional industry. Lula also suggested that Celac work with China on projects such as the Sanitary Autosfficiency Plan, the Climate Adaptation Fund (Facid) and the Food Security Plan.

The forum also marked the resumption of Celac as an active space for the Global South Articulation. For Lula, the region needs more “political concertation and less external dependence”.

Trade War, Global Reforms and Environmental Diplomacy

Lula criticized the US -driven commercial wars, especially Donald Trump’s fares against China and Brazil. He stated that “there are no winners in commercial wars” and that protectionism “erodes the income of the most vulnerable.” He and Xi Jinping defended a trade based on WTO rules and rejection of unilateralism.

The president also reiterated the need for a negotiated solution for war in Ukraine and a viable Palestinian state to ensure peace in the Middle East. He stressed that only a renovated UN will be able to guarantee peace, human rights and development. “Overcoming the foolishness of armed conflicts is a condition for development,” he said.

In broadening the scope of criticism of unilateralism, Lula again condemned Israeli military offensive about Gaza and reiterated Brazil’s historical defense for a solution of two states. “Humanity is appealed to the atrocities committed in Gaza. There will be no peace without an independent and viable Palestine, living side by side with Israel,” he said.

In a climate, he highlighted COP30 in Belém as a turning point and reinforced joint goals with China to reduce emissions. The CBERS-5 and 6 program will be used for environmental monitoring. Lula stated that Brazil and China may prove that it is possible to contain climate change without giving up economic growth and social justice.

Impact of the US-China Treel in Brazil and risks for national sectors

The provisional tariff agreement between US and China, which reduces average rates from 145% to 30%, has direct effects on Brazil. On the one hand, it mitigates the risk of diversion of Chinese exports to the Brazilian market. On the other hand, it reduces the chances of Brazilian sectors occupying spaces in the US market previously occupied by products from China.

In the textile sector, ABIT had identified an increase in consultations in the last 30 days. But with the truce between Beijing and Washington, this window is narrowed. Fernando Pimentel, from ABIT, said that “the more the tariffs are palatable to the Chinese, the less opportunities there will be for Brazil.”

The Brazilian government continues to monitor the effects of the tariff war and its branches on US bilateral agreements with third countries. According to sources in Brasilia, a broader US-china agreement could affect Brazilian agribusiness and other strategic sectors of foreign trade.

Diplomacy of the shared future

Lula’s visit to China has confirmed a Brazilian repositioning trend as a global global and articulator of the global southern. In all agendas, there was convergence between Brazil and China in the defense of multipolarity, regional integration, sovereignty and the fight against poverty and climate change.

As Lula said at the end of his speech: “If it depends on our government, the Brazil-China relationship will be indestructible. Because China needs Brazil, and Brazil needs China.”