The Brazil investment forum in Sao Paulo, which began on May 13 and ended today, is already bearing fruit. After China and Brazil initiated the China-Brazil fund, a mechanism for improving cooperation between the two BRICS countries through the financing of projects beneficial to both nations.

The 200 billion US dollars fund includes 150 billion US dollars from China and 50 billion from Brazil. The two countries agreed to create the fund during Chinese Premier Li Keqiang’s visit to Brazil in 2015. Vice Premier Wang Yang announced the establishment of the fund later that same year. 

China and Brazil will operate the fund with market mechanisms. The two countries together will find suitable projects and the final investment decisions will be made on sound business principles. 

Officials attending the Brazil investment forum are calling for more foreign investment in an effort believed to strengthen the economic recovery even though the country is still facing some political turbulence. Analysts say the creation of the China – Brazil Fund is considered a boost for Brazil’s development and China–Brazil relations.