China and Brazil Deepen Trade Ties as Global Supply Chains Shift
By Ren Huilan and Denise Jia
As global trade readjusts amid mounting geopolitical tensions, China and Brazil are speeding up economic cooperation in agriculture, infrastructure and investment — positioning themselves as key partners in shaping the future of the Global South.
At the April 25 Brazil-China Economic Summit, officials from both countries pledged to strengthen ties, as growing friction between the United States and China fuels demand for more resilient and diversified trade relationships.
Dilma Rousseff, president of the New Development Bank and former president of Brazil, called on the two countries to lead by example. “In the face of de-globalization, China and Brazil must jointly uphold multilateralism and demonstrate the benefits of win-win cooperation,” she said.
Brazilian officials described the current climate as a “golden window” in which to expand bilateral trade. Since 2009, China has been Brazil’s largest trading partner. In 2024, trade volume hit 1.34 trillion yuan ($184 billion), up 4.6% from the previous year, according to Chinese customs data.
Presidential diplomacy has also intensified. President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva signed a joint declaration last year to establish a China-Brazil community with a shared future. Lula is expected to visit China and Russia again this May.
Brazil’s agricultural exports — particularly soybeans — are at the center of this growing partnership. With U.S. shipments falling due to tariffs, China is turning increasingly to Brazil to meet its food security needs.
In March, Chinese buyers bought at least 2.4 million metric tons of Brazilian soybeans — nearly a third of China’s monthly average intake.
“China is our top agricultural trading partner,” said Fernanda Maciel Carneiro of the Brazilian Confederation of Agriculture and Livestock. “Brazil’s role as a stable grain supplier is essential to China’s food supply chain.”
Experts said infrastructure is key to sustaining Brazil’s market share. New road, rail and waterway projects in Paraná aim to reduce transport costs and boost export efficiency. Paranaguá Port, Brazil’s top grain center, links the country’s heartland to global markets.
Chinese companies are not only buying more — they are demanding higher environmental standards. China Mengniu Dairy Co. Ltd., for example, bought 500,000 tons of “zero-deforestation” soybeans in the first half of the year, in line with growing consumer and corporate sustainability expectations.
“Traceable, deforestation-free sourcing is now the baseline,” said Lin Di, Mengniu’s sustainability director. It’s driven both by its biggest global clients like Yum China and Starbucks, and by rising consumer awareness, he said.
Beyond trade, Chinese investment spans Brazil’s full agricultural supply chain. China’s largest food processor and trader Cofco Group has built ports, processing plants, and warehouses to support grain flows from farm to dock. At Santos Port, a $2.7 billion upgrade funded by Chinese firms has cut shipping times by more than a third.
Cofco’s newest terminal began operating in March, with capacity for 8 million tons annually, according to Guo Junping, director of policy and strategy at Cofco. It’s set to be the company’s largest global export hub.
Seed tech is also a key investment area. Yuan Long Ping High-Tech Agriculture Co. Ltd., now holding 21% of Brazil’s corn seed market, operates 11 breeding stations and leads the China-Brazil Agricultural Technology Park, helping Chinese agri-firms establish a local presence.
“We see immense potential in Brazil,” said Liu Zhiyong, chairman of Yuan Long Ping High-Tech. “With strong fundamentals and U.S.-China tensions reshaping trade, China-Brazil collaboration has a vast runway.”
Chinese and Brazilian firms are also exchanging biotech expertise. “Brazilian livestock producers have advanced breeding systems — we’re learning a lot,” said Yao Jun, chairman of Shanxi Changrong Agricultural Technology Co. Ltd.
Brazil has identified three major growth areas: diversifying exports to include sesame, sorghum and tropical fruits; increasing value-added food processing; and gaining access to Chinese finance to support smallholder farming and rural industrialization.
Brazilian food giants are also preparing to invest in China. “We want to build processing plants close to consumers,” said Bruno Ferla of poultry exporters Marfrig and BRF. “Understanding local tastes is key.”
Contact reporter Denise Jia (huijuanjia@caixin.com)
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