BUSINESS

China and Brazil Deepen Trade Ties as Global Supply Chains Shift

Published: Apr. 30, 2025 5:32 a.m. GMT+8

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Workers gather soy crops at a farm in Orizona, Goias state, Brazil, on Feb. 21, 2025. Photo: Bloomberg

As global trade readjusts amid mounting geopolitical tensions, China and Brazil are speeding up economic cooperation in agriculture, infrastructure and investment — positioning themselves as key partners in shaping the future of the Global South.

At the April 23 Brazil-China Economic Summit, officials from both countries pledged to strengthen ties, as growing friction between the United States and China fuels demand for more resilient and diversified trade relationships.

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China and Brazil are strengthening economic cooperation in agriculture, infrastructure, and investment, with 2024 bilateral trade reaching 1.34 trillion yuan ($184 billion), up 4.6% year-on-year.
The partnership focuses on agricultural exports (especially soybeans), infrastructure upgrades, and sustainability, with Chinese firms investing in Brazilian supply chains and demanding higher environmental standards.
Brazil aims to diversify exports, increase value-added processing, and attract Chinese finance, while both nations deepen biotech collaboration and expand food sector investments.

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Who’s Who

China Mengniu Dairy Co. Ltd.: China Mengniu Dairy Co. Ltd. purchased 500,000 tons of “zero-deforestation” soybeans from Brazil in the first half of the year, reflecting growing consumer and corporate demands for sustainability. According to Lin Di, Mengniu’s sustainability director, traceable and deforestation-free sourcing is now a baseline requirement, driven by major global clients such as Yum China and Starbucks, as well as increasing consumer awareness regarding environmental issues.

Yum China Holdings, Inc.: According to the article, Yum China Holdings, Inc. is mentioned as one of the major global clients driving demand for traceable, deforestation-free soybeans sourced from Brazil. This reflects rising corporate sustainability expectations and highlights Yum China’s influence in promoting environmental standards within Brazil’s agricultural exports to China.

Starbucks: The article mentions Starbucks as one of the major global clients driving the demand for traceable, deforestation-free soybeans from China. China's Mengniu Dairy Co. Ltd. supplies “zero-deforestation” soybeans partly because clients like Starbucks, along with Yum China, now require higher sustainability standards, reflecting wider consumer and corporate expectations for environmentally responsible sourcing.

Cofco Group: Cofco Group, China’s largest food processor and trader, has heavily invested in Brazil’s agricultural supply chain. The company has built ports, processing plants, and warehouses, supporting grain flows from farms to export docks. At Santos Port, a $2.7 billion upgrade funded by Chinese firms has reduced shipping times by over a third. In March, Cofco opened its newest terminal in Brazil, with an annual capacity of 8 million tons, marking its largest global export hub.

Yuan Long Ping High-Tech Agriculture Co. Ltd.: Yuan Long Ping High-Tech Agriculture Co. Ltd. holds 21% of Brazil’s corn seed market and operates 11 breeding stations in the country. The company leads the China-Brazil Agricultural Technology Park, helping Chinese agri-firms establish a local presence. Chairman Liu Zhiyong expressed confidence in Brazil’s agricultural potential and highlighted that, amid U.S.-China tensions, China-Brazil collaboration in agricultural technology and investment has significant growth opportunities.

Shanxi Changrong Agricultural Technology Co. Ltd.: Shanxi Changrong Agricultural Technology Co. Ltd. is involved in agricultural technology collaboration between China and Brazil. According to the article, its chairman, Yao Jun, stated that the company is learning from Brazilian livestock producers, who have advanced breeding systems. This highlights the firm's focus on exchanging biotech expertise and leveraging international partnerships to enhance agricultural practices.

Marfrig: Marfrig is a Brazilian poultry exporter mentioned in the article as preparing to invest in China. Bruno Ferla from Marfrig and BRF stated that the company aims to build processing plants close to Chinese consumers, emphasizing that understanding local tastes is key to their strategy in the Chinese market.

BRF (Brazil Foods): According to the article, Brazilian food giants such as BRF (Brazil Foods) are preparing to invest in China. Bruno Ferla, representing poultry exporters Marfrig and BRF, stated that their strategy is to build processing plants close to Chinese consumers, emphasizing that understanding local tastes is key to success in the market. This highlights BRF’s focus on localization and expanding its presence in China through direct investment.

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