The telephone conversation held on August 11, 2025, between Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping marked a significant turning point for the future of BRICS, global economic balances, and the strengthening of bilateral trade relations.[i] Statements from Lula’s office and Chinese state media indicated that during the nearly hour-long exchange, both leaders emphasized their commitment to the principle of multilateralism and their determination to deepen economic cooperation.
One of the most striking aspects of the conversation was the emphasis on the role of BRICS and the G-20 in “defending multilateralism.” Lula and Xi reaffirmed that global trade must operate fairly and equitably, and that BRICS serves as a common platform for countries of the Global South. This emphasis gained particular significance following U.S. President Donald Trump’s characterization of BRICS as “anti-American” and his threats of imposing additional tariffs.[ii]
Lula expressed his intention to develop a joint strategy with BRICS members in response to Trump’s tariff policies. In this regard, China’s support for Brazil demonstrated the formation of a united front between the two nations. Although China refrained from directly targeting the United States in its statement, the message was conveyed clearly while maintaining diplomatic tone.[iii]
Xi Jinping stated that relations between the two countries were at “the best level in history.”.[iv] This assessment highlighted the progress achieved in recent years both diplomatically and economically. Xi also expressed a willingness to work with Brazil in addressing global challenges and in seeking a political resolution to the Ukraine crisis. This stance aligned with China’s foreign policy preference of prioritizing diplomacy in conflict resolution. In this context, Xi described BRICS as a “key platform” for forging consensus within the Global South and emphasized China’s aspiration, alongside Brazil, to set an example of unity and self-sufficiency among major Global South nations.[v] This conveyed a strategic message regarding both economic independence and geopolitical solidarity.
Agricultural trade has played a defining role in bilateral economic relations. As the world’s largest soybean importer, China sources a significant portion of its demand from Brazil, thereby strengthening Brazil’s position in the Chinese market. Recently, Brazilian coffee companies entered the Chinese market following high U.S. tariffs, contributing to the diversification of bilateral trade. This development revealed that U.S. trade policies indirectly fostered the growth of China–Brazil commerce.
For Brazil, China is not only a vast market but also a strategic investment partner. China’s involvement in infrastructure and energy projects has ensured the sustainability of economic ties. In particular, investments in logistics and ports have facilitated the export of agricultural products to China, boosting trade volume. This process has helped Brazil diversify its export revenues and reduce its dependence on the U.S. market.
From China’s perspective, Brazil has been regarded as a partner through which it can enhance both economic and diplomatic influence in Latin America. Cooperation under the BRICS framework has reinforced China’s claims of leadership in the Global South. Furthermore, Brazil’s agricultural and energy resources aligned with China’s long-term strategies for food and energy security.
The role of BRICS in this process has extended beyond economic cooperation to include political coordination. Lula and Xi agreed that BRICS should act as a defender of multilateralism in the international system. This approach laid the groundwork for developing a collective stance against U.S. unilateral trade and sanctions policies.
The Ukraine crisis was another important subject of discussion. Xi’s statement that the crisis should be resolved through political means reflected China’s consistent policy of promoting diplomatic solutions without direct involvement in conflicts. Lula emphasized that Brazil adopts a neutral yet diplomacy-based approach to such global issues.
Another significant dimension of the meeting was the pursuit of stronger cooperation in technology and innovation. Brazil sought to attract Chinese investment in digital infrastructure and 5G technologies, aiming both to strengthen its communications network and to boost industrial productivity. For China, Brazil represented a strategic partner for expanding its technological influence in Latin America and creating new markets for its companies.
Energy cooperation also held a special place among the long-term strategic goals of both nations. Brazil sought to utilize Chinese financing and technical expertise in hydroelectric and biofuel projects. Meanwhile, China, within the framework of its energy security policy, attached importance to Brazil’s renewable energy potential as well as its fossil fuel reserves. Consequently, infrastructure projects such as the modernization of energy transmission lines and the expansion of port capacity came to the forefront.
In conclusion, the Lula–Xi conversation demonstrated not only a commitment to strengthening bilateral trade but also a strategic will to enable BRICS to play a more influential role on the global stage. Covering dimensions ranging from agricultural trade to geopolitical coordination, from multilateral advocacy to solidarity against trade wars, the engagement elevated relations between the two countries to “the best level in history.” In this context, both Brazil and China increased their mutual reliance and strengthened their capacity to act jointly amid ongoing global tensions. Thus, the meeting represented a step with the potential to yield long-term economic and diplomatic consequences.
[i] “Brazil’s Lula, China’s Xi Discuss BRICS, Bilateral Opportunities”, Reuters, https://www.reuters.com/world/china/brazils-lula-chinas-xi-discuss-brics-bilateral-opportunities-2025-08-12/, (Date Accessed: 17.08.2025).
[iii] Ibid.
[iv] Ibid.
[v] Ibid.
