China and Brazil have agreed on multi-billion-dollar trade and investment deal, including on the development of oil projects.
Chinese Prime Minister Li Keqiang and Brazilian President Dilma Rousseff on Tuesday signed the agreements, which are part of a USD 50-billion Chinese investment package, including finance and cooperation deals worth USD 7 billion for Brazil’s state-owned oil giant Petrobras.
According to Brazilian government sources, aside from the Petrobras deal, the two sides also signed a range of accords aimed at increasing bilateral cooperation on trade, investment, agriculture, energy, and transport.
The Petrobras deal follows a USD 3.5 billion financing deal signed earlier this year with the China Investment Bank.
Brazil and China also finalized a USD 1.3-billion deal to sell 22 Brazilian Embraer commercial jets to China’s Tianjin Airlines.
The agreements were signed during the Chinese leader’s first official tour of Latin America. After Brazil, he is expected to travel to Colombia, Peru and Chile over the next week.
The four Latin American countries account for nearly 60 percent of China’s trade with the region.
Beijing’s trade with Latin American countries expanded from USD 10 billion in 2000 to USD 255.5 billion in 2012. Chinese-Brazilian trade grew from USD 6.5 billion in 2003 to USD 83.3 billion in 2012.
The recent developments come days after Beijing signed agreements worth USD 25 billion and USD 22 billion respectively with Russia and India, which are two of Beijing’s fellow BRICS members. The bloc also includes Brazil and South Africa.