Brazil looks to China for green push

As Brazil seeks to reshape its economy with a long-term vision centered on expanding renewable energy and developing digital infrastructure, the country is increasingly looking toward China — its fellow BRICS founding member.

The growing collaboration between the two countries in these sectors has become increasingly evident in recent months, culminating earlier this month when Brazilian President Luiz Inacio Lula da Silva made a five-day state visit to China. His trip coincided with the fourth ministerial meeting of the China-Community of Latin American and Caribbean States Forum, held in Beijing on May 13.

This deepening partnership was underscored by a series of new agreements and cooperative projects. During his visit, Lula announced two major agreements aimed at accelerating Brazil's transition to a greener and more digitally connected economy.

The first deal with China's Envision Group involves a $1 billion investment to produce sustainable aviation fuel from sugarcane in Brazil. The second covers a partnership between Windey Energy Technology Group and Brazil's Senai Cimatec to establish a renewable energy research and development center. Lula also announced that China will invest an additional $4.76 billion in Brazil.

"In 2003, when I took office as president of the republic, we had a trade balance of $6.6 billion," Lula said after the visit. "Today, we have the privilege of saying that it has reached $160 billion, with an upward trend in our trade flow."

Ricardo Teixeira, coordinator of the financial management program at the Getulio Vargas Foundation, a higher education institution and think tank in Rio de Janeiro, said China has been steadily expanding its global partnerships.

"We have seen increasing trade and exchanges between China and numerous nations … (as it) seeks to leverage its vast technological and financial capacity to expand cooperation globally."

Both Brazil and China are founding members of the BRICS group, a fact that "greatly facilitates this partnership", he said.

Respect for pace

Following a challenging decade, Brazil is working to revive its economy. "Brazil is now seeking to recover and modernize its industrial (sector) with partners who respect its pace and development horizon," said Luan Scliar, executive director of iBRICS+, a platform focusing on facilitating partnerships, particularly under the BRICS framework.

"By signing these new agreements with China in energy and infrastructure, Brazil is positioning itself as a long-term strategic player, rather than just a recipient of one-off investments."

This long-term strategic planning has emerged as a frequent theme, along with a renewed focus on strengthening links with China.

Lula's attendance at the China-CELAC Forum marked the culmination of a recent flurry of activity aimed at boosting ties with China and leveraging them to strengthen Brazil's energy sector.

In mid-April, Brazil's Minister of Mines and Energy Alexandre Silveira visited China to promote investment opportunities in Brazil for digital infrastructure and data centers.

Several deals and negotiations have emerged in the wake of that visit. One potential deal, reported at the end of last month, could see Byte-Dance, parent company of TikTok, invest in a 300-megawatt data center at the Port of Pecem in Ceara state. With access to submarine cable landings and renewable wind energy, the facility could eventually scale up to 1 gigawatt.

Mobility partnerships

Silveira also explored clean energy and mobility partnerships during meetings with various Chinese companies, including carmaker BYD, which is looking at expanding electric vehicle and battery production operations, according to an announcement from the Ministry of Mines and Energy.

There are also reports that he held talks with Huawei to discuss the development of energy storage and EV charging systems, and with China General Nuclear Power to discuss a $546 million renewable energy hub in Piaui state, as well as possible collaboration in nuclear energy and green hydrogen.

"The reengagement with BYD, Huawei and CGN Power shows Brazil's ambition to transform its abundant renewable energy into a global asset," said Scliar of iBRICS+. "The goal is to attract corporations to establish battery factories, EV fast-charging stations and cost-efficient data centers."

Brazil has long been the top recipient of Chinese investment in Latin America, drawing $73.3 billion across 264 projects from 2007 to 2023, according to the China-Brazil Business Council.

"Brazil is turning its eyes so resolutely to China because it sees it not only as a financing source, but also as a partner willing to invest in training technology talents, establishing local production chains and developing innovative financing models," Scliar said.

China's pragmatic approach of straightforward cooperation without political or fiscal conditions gives Brazil the autonomy to set its priorities in major initiatives, such as the New Growth Acceleration Program, the Ecological Transformation Plan, and New Industry Brazil, he said.

"China has become Brazil's preferred partner for strategic investments in emerging sectors like electric cars and data centers.

"This is largely because China understands Brazil's current situation and shows strong interest in building lasting partnerships."

The writer is a freelance journalist for China Daily.