Brazilian President Luiz Inácio Lula da Silva has begun a five-day state visit to China, seeking to deepen economic and diplomatic ties with Beijing just as US-China trade tensions have created new opportunities for Brazilian exports and Chinese investment in Latin America's largest economy.

"If it's up to my government, our relationship with China will be indestructible," Lula declared at a business forum in Beijing, where Chinese companies announced over $4.5bn in planned investments across sectors ranging from renewable energy and automaking to pharmaceuticals and semiconductors, Reuters reported.

The visit comes as China courts Latin American leaders ahead of a ministerial meeting of the China-CELAC (Community of Latin American and Caribbean States) Forum, which will be attended by foreign ministers from across the region.

Chinese President Xi Jinping will deliver a speech at the forum's opening ceremony on May 13, Xinhua reported, showcasing Beijing's growing clout in a region traditionally considered within the US sphere of influence.

Major investment announcements

Lula's trip has already yielded significant investment pledges from Chinese companies, according to Reuters:

- A $1bn investment by Envision Group in Brazilian production of renewable aviation fuel from sugarcane

- Around BRL5.0bn ($900mn) from delivery company Meituan to enter the Brazilian market with its Keeta app

- BRL3.0bn from CGN Power for a wind, solar, and energy storage hub

- BRL6.0bn from Great Wall Motor for Brazilian car manufacturing facilities

- BRL650mn from Chinese semiconductor company Longsys to expand capacity at its Brazilian subsidiary Zilia, potentially helping avoid US tariffs on China-made chips

The Brazilian president also reportedly met with the CEO of Chinese arms maker Norinco, suggesting potential defence industry cooperation.

Infrastructure projects in focus

Brazilian Transportation Minister Renan Filho told Reuters that Chinese investors have expressed interest in several rail projects to link Brazilian agricultural and mining regions with ports, potentially enhancing export capacity to China.

"We will sign all projects that have road and rail synergy with the potential to increase exports to China, especially agriculture, but also other things, such as mining," Filho said.

The minister noted that the relationship between the two countries has matured to a point where projects long discussed might finally advance.

This development follows China's decision last week to lift restrictions on soybean shipments from five Brazilian companies previously suspended over phytosanitary concerns, according to Xinhua, a move seen as a goodwill gesture ahead of Lula's visit.

Strategic timing amid US-China tensions

Analysts noted that the timing of Lula's visit is particularly significant, coming just as the US and China reached a deal to temporarily reduce some tariffs but with substantial trade barriers remaining in place.

"Brazil is looking to expand the ties of friendship and trade with China, generating great reciprocal achievements, especially in a moment of trade instability caused recently by the US," Brazilian Agriculture Minister Carlos Favaro told the business forum in Beijing, explicitly referencing the opportunity created by US-China tensions, Reuters reported.

China became Brazil's largest trading partner in 2009 and has remained in that position since. Trade between the two countries totalled approximately $38.8bn in the first quarter of 2025 alone, with Brazil exporting $19.8bn and importing $19bn, according to Brazilian government figures.

Brazilian exports to China exceeded $94bn last year, according to the UN Comtrade Database.

China has long been seeking to replace the US as the main political and economic external influence in Latin America, where leaders have urged a united front against President Donald Trump's aggressive trade policies.

According to Eduardo Saboia, Brazil's Secretary for Asia and the Pacific at the Ministry of Foreign Affairs, at least 16 bilateral agreements are expected to be signed during Lula's visit, with another 32 under negotiation.

The deals will cover areas including agriculture, trade, investment, infrastructure, industry, energy, mining, finance, science, technology, communications, sustainable development, tourism, sports, health, education and culture.

Diplomatic balancing act

While Lula has sought to improve ties with both China and the US since returning to power in 2023, experts suggest his current outreach to Beijing reflects broader strategic calculations.

"Lula sees China as a partner in rebalancing global power, not just a trade partner but a geopolitical counterweight to US hegemony," said Matias Spektor, a professor at Fundação Getulio Vargas, a Brazilian university, as quoted by The New York Times.

"Lula's strategy is clear: diversify Brazil's alliances, reduce dependency on Washington, and assert Brazil as a mover and shaker in an increasingly multipolar world,” he added.

Chinese Assistant Foreign Minister Miao Deyu framed the regional engagement in similar geopolitical terms on May 11.

"What the people of Latin America and the Caribbean seek are independence and self-determination, not the so-called 'new Monroe Doctrine,'" he said, as quoted by The New York Times, in a reference to US Secretary of State Marco Rubio's recent statement about "putting our region, the Americas, first."

Trade protection concerns remain

Yet despite the strengthening relationship, Brazil has not been immune to concerns about potentially nefarious Chinese trade practices.

The New York Times reported that Lula has quietly increased tariffs on iron, steel and fibre optic cable products that mostly come from China, reflecting worries shared across Latin America that Chinese exporters shut out of the US market could flood regional markets with cheap goods.

"These are countries that have a history of protectionism already and are interested in protecting local jobs and local industries," said Ryan Berg, director of the Americas Program at the Center for Strategic and International Studies.

"Even though many countries like Brazil have good relationships with China, they have nevertheless moved almost in parallel with the US to protect certain industries."

It is no coincidence, however, that Brazil's diplomatic outreach to China coincides with its rotating presidency of the BRICS group this year. Lula intends to leverage these deepening economic ties to advance the bloc's multipolar agenda, potentially reshaping global economic governance at a time when Beijing's influence in Latin America continues to grow at Washington's expense.