The Chinese Prime Minister Li Keqiang, boost trade, finance and investment deals worth tens of millions of dollars on Tuesday to help Brazil to update its infrastructure in ruins and boost an economy in crisis.
In his first official trip to Latin America, Li will meet with President Dilma Rousseff and attend the signing of a series of agreements ranging from the purchase of $ 1,000 million passenger aircraft manufactured by Embraer of Brazil for lifting the import ban on Brazilian beef and a long -discussed plan to build a railway over the Andes to the Pacific.
Although China has not met many past promises of investment, Brazilian government officials said they were awaiting agreements worth 53 billion reais ($ 17.6 billion) with the Chinese.
However, China's ambassador to Brazil, Li Jinzhang, told the Brazilian newspaper Valor Economico that the deals signed during the visit of Prime Minister would total about 26 million.
A capital injection from China could not come at a better time for Brazil, which slides into recession after the end of a commodity boom that was driven by the voracious demand China for its main exports, iron ore and soybeans .
As China's economy slows, Chinese companies are also looking abroad for new investment opportunities.
Chinese enterprises with technology and experience are ready to build factories in Brazil to produce materials and equipment needed for infrastructure projects on a large scale, said Premier Li in a column published Monday by Valor Economico.
"China wants to get involved in large Brazil plans to build freight railways, electricity and telecommunications networks," he wrote the Chinese premier, who arrived Monday night before his official round of meetings on Tuesday.
Rousseff, who has been forced to cut spending on public works to put public finances in order, is preparing a package of concessions to attract private investors to build or modernize railways, roads, ports and airports in Brazil. It will be released in early June.
Brazil is the hope of the Chinese investment in a section of 900 kilometers (560 miles) of railway to be built through the soybean producing state of Mato Grosso, which could speed up the transport of grain and other goods to the Atlantic ports .
The rail section that would become part of a transcontinental railway connecting the Pacific coast of Peru planned, when President Xi Jinping visited Brasilia last year, which Brazil to send raw materials to China without having to go through the Canal of Panama.
China is expected to confirm Tianjin Airlines previously announced a purchase of a first batch of 22 passenger aircraft E-190 manufactured by Embraer, including two models E-190-E2 second generation entering service in 2018, an official said Ministry of Foreign Affairs. China agreed to buy 60 aircraft when Xi visited in 2014.
Meat exporters expect China to formally lift the prohibition regarding mad cow 2012 and allowing eight meat processing plants in Brazil to re-enter the Chinese market, potentially a trade agreement than $ 1 billion.
Before the visit, Brazilian officials told Reuters the Industrial and Commercial Bank of China Ltd (ICBC), the world's largest bank by assets, will agree to establish a fund to Caixa Economica Federal, the largest mortgage lender Brazil, to invest in infrastructure in Brazil.