Xi and Lula pledge closer strategic ties, accelerate Mercosur-China trade talks

Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva held a telephone call on Sunday, July 26, reaffirming bilateral strategic coordination and pledging to deepen cooperation across multiple domains. The conversation lasted over one hour and focused on aligning the two countries' development strategies, building what both leaders described as a "China-Brazil community with a shared future," and accelerating negotiations for a Mercosur-China trade agreement.

Xi stated that China stands ready to strengthen bilateral and multilateral strategic coordination with Brazil, and emphasized that both nations, as important members of the Global South, should "firmly stand on the right side of history" and play a greater role in reforming the global governance system and upholding international fairness and justice. Xi also affirmed China's support for Brazil in safeguarding its sovereignty and independence and opposing external interference. Lula highlighted Brazil's commitment to diversifying its markets and commercial partners, and expressed interest in expanding cooperation in artificial intelligence, energy, and mineral resources, welcoming increased Chinese investment.

The call came days after the United States implemented a 25 percent tariff on Brazilian exports, followed by an additional 12.5 percent tariff on Brazil and 59 other trading partners. Brazilian government officials noted the conversation addressed the implementation of development synergies between the two countries but did not explicitly reference the U.S. tariffs in their statement. China's foreign ministry statement, however, referenced "new circumstances and challenges" facing the Global South.

Both leaders emphasized the importance of strengthening BRICS cooperation and multilateral coordination. Lula congratulated Xi on the 2026 World Artificial Intelligence Conference and affirmed Brazil's commitment to upholding the United Nations' authority, resolving disputes through dialogue, and maintaining world peace and stability. The two sides also discussed the Brazil-China Cultural Year, which has included numerous bilateral events, and noted that bilateral trade reached record levels. Brazil expressed readiness to enhance coordination within BRICS and firmly oppose what it termed "power politics."