Editor's note: Imran Khalid is a freelance columnist on international affairs. The article reflects the author's opinions and not necessarily the views of CGTN.

Brazilian President Luiz Inacio Lula da Silva – affectionately known as Lula – has started his much-awaited trip to China, which is expected to significantly propel bilateral relations to a new echelon by fostering a more all-encompassing partnership in areas beyond conventional domains like trade and investment. This will likely include collaboration in cutting-edge arenas like finance, anti-poverty measures, cooperation under the framework of the Belt and Road Initiative (BRI), and joint mediation to address the globally pressing issue of the Ukraine crisis.

For various reasons, this is considered to be a historic visit. In South America, Brazil stands out as China's foremost economic and political partner, and a significant member of the BRICS bloc. Since China began extending its foreign direct investment to other countries, Brazil emerged as a significant destination for its capital. Initially, these investments were predominantly focused on the commodities sector, but they soon expanded to include a broader range of infrastructure projects. By 2017, over half of China's investments in South America were being directed towards Brazil.

While Brazil has not been formally included in the BRI, it is clear that China's overseas investment programs impact Brazil's global interests and export markets, particularly as they tend to shift the world's economic center of gravity away from the United States, which is another major trading partner for Brazil. In 2021, Brazil emerged as the top recipient of Chinese foreign investment, accounting for almost 13.6 percent of China's total foreign direct investment. The majority of this investment was directed towards bolstering Brazil's electricity grid and oil extraction projects.

The partnership between China and Brazil is firmly anchored in a broad trade and investment association. China started to engage in significant trade activities with South America after 2000, mainly targeting commodities to fuel its burgeoning industrial sector and satisfy its population's needs. Brazil is among the world's most productive agricultural exporters, competing with the United States in this domain, in addition to being a notable exporter of mineral products, thereby consolidating its position as a vital economic partner for China.

As global trade prospects become increasingly dismal and tensions with the United States continue to escalate, China is seeking to expand its network of economic and trade partners. Brazil, the biggest economy in South America, is also eager to enhance its exports of iron ore, farm produce and oil, whilst simultaneously revitalizing its manufacturing sector, thus making itself an attractive trade and economic partner for China. China has maintained its position as Brazil's primary trading partner for over a decade. The two countries saw their trade volume surge by 4.9 percent to reach a record $171.5 billion in 2022. Brazil is the largest provider of soybeans, poultry and sugar to China. The country also exports significant quantities of corn and beef.

The large delegation accompanying President Lula, which includes over 240 business and agriculture representatives, is a testimony to the ever-flourishing business ties between the two nations. The ongoing visit is poised to be a momentous occasion, highlighting the growing importance of the relationship between China and Brazil and underscoring their commitment to expanding cooperation and collaboration that will undoubtedly shape the global economy in the years to come.

China has emerged as Brazil's top source of manufactured goods, benefiting from the vast market of the country's 215 million people. Among the key exports from China to Brazil are mobile phones, steel, and increasingly, Chinese cars.

But there is much more beyond trade and business that will be expected to be discussed between Chinese President Xi Jinping and President Lula.

In contrast to his far-right predecessor Jair Bolsonaro, President Lula has taken a more cordial stance towards China. The Workers' Party, which Lula represents, has been known to have a congenial attitude towards the Asian country. President Lula also wants to abandon the isolationist foreign policy of his predecessor. That is why he is quite active in the global arena after taking charge.

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