Beijing and Brasilia Beat the Odds
China-Brazil relations are robust with the two giants cooperating in such areas as digital economy, green economy, sci-tech innovation and aerospace. Beijing and Athens strengthen cooperation.
China and Brazil stress high quality cooperation
Chinese Premier Li Qiang met with Brazilian President Luiz Inacio Lula da Silva in Rio de Janeiro on July 5, the eve of the 17th BRICS Summit.
Source: Socialist China
Li said that China is willing to work with Brazil to leverage each other’s complementary advantages and expand cooperation in such areas as digital economy, green economy, sci-tech innovation and aerospace. He conveyed Chinese President Xi Jinping’s warm greetings to Lula, noting that China-Brazil relations are in their best shape ever, with both sides working together to build a China-Brazil community with a shared future for a more just world and a more sustainable planet.
Li also urged both countries to jointly ensure the success of the China-Brazil Year of Culture in 2026, step up cooperation in education, youth, healthcare and other areas, further facilitate people-to-people exchanges and strengthen public support for China-Brazil friendship and cooperation, adding that China supports Brazil in hosting the UN Climate Change Conference in Belem (COP30) later this year.
Lula said that Brazil is ready to promote exchanges and cooperation with China in such areas as economy and trade, science and technology, finance, and aerospace, and also seeks to deepen collaboration with China in addressing climate change. Brazil welcomes China’s participation in the upcoming COP30.
The previous day, Li made a stopover on the Greek island of Rhodes on his way to Brazil.
Meeting with Greek Deputy Prime Minister Kostis Hatzidakis, Li said that China is willing to work with Greece to leverage complementary advantages, advance the implementation of the plan for the Port of Piraeus in a high-quality manner, and promote more optimised and balanced development of the bilateral trade.
He noted that President Xi Jinping met with Greek Prime Minister Kyriakos Mitsotakis during his visit to China in November 2023 and reached important consensus on deepening bilateral relations. Over the past two years, he added, China and Greece have actively implemented the outcomes of the visit and promoted high-quality development of the Belt and Road cooperation, delivering more benefits to the peoples of both countries.
China is also ready to work with Greece to enhance cooperation in such fields as clean energy, power transmission and transformation, and artificial intelligence (AI), and foster new drivers for economic growth. China also supports and encourages more capable Chinese enterprises to actively invest in Greece.
It is hoped that Greece will continue to play a constructive role in promoting the development of China-EU relations, he added.
For his part, Hatzidakis said that Greece and China are both ancient civilisations, and Greece attaches great importance to developing its relations with China.
China is a major country with significant international influence, he said, adding that Greece is ready to strengthen multilateral coordination with China, jointly uphold the purposes and principles of the UN Charter and address global challenges such as climate change. Greece is also willing to contribute to the development of EU-China relations.
Chinese premier says to expand cooperation with Brazil in digital economy, aerospace
Source: Xinhua
RIO DE JANEIRO, July 5 (Xinhua) — Chinese Premier Li Qiang said on Saturday that China is willing to work with Brazil to leverage each other’s complementary advantages and expand cooperation in such areas as digital economy, green economy, sci-tech innovation and aerospace.
Li made the remarks during his meeting with Brazilian President Luiz Inacio Lula da Silva. The Chinese premier arrived in Rio de Janeiro on Saturday to attend the 17th BRICS Summit.
Li conveyed Chinese President Xi Jinping’s warm greetings to Lula, noting that China-Brazil relations are in their best shape ever, with both sides working together to build a China-Brazil community with a shared future for a more just world and a more sustainable planet.
During Lula’s visit to China in May, the two heads of state reached important consensus on pushing for building a China-Brazil community with a shared future and upholding multilateralism, Li said.
China stands ready to work with Brazil to continue the efforts in enriching the dimensions of bilateral relations and achieving more concrete results in cooperation so as to deliver more benefits to the two peoples, Li added.
China is willing to work with Brazil to further consolidate and deepen bilateral cooperation in trade, finance and infrastructure development under the framework of high-quality Belt and Road cooperation, said the premier.
Li also urged both countries to jointly ensure the success of the China-Brazil Year of Culture in 2026, step up cooperation in education, youth, healthcare and other areas, further facilitate people-to-people exchanges and strengthen public support for China-Brazil friendship and cooperation.
Depicting both countries as staunch supporters of multilateralism and free trade, Li said that China is willing to enhance communication and coordination with Brazil within multilateral frameworks such as the United Nations, BRICS and the G20, work in unity with developing countries to promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, and provide more certainty and stability for the world.
China supports Brazil in hosting the UN Climate Change Conference in Belem (COP30) later this year, Li said.
For his part, Lula asked Li to convey his sincere regards to Xi. He noted that the two peoples share a profound friendship.
Brazil attaches great importance to advancing its relations with China, and stands ready to work with China to follow through on the important consensus reached by the two heads of state and further strengthen high-level exchanges, he said.
Brazil is ready to promote exchanges and cooperation with China in such areas as economy and trade, science and technology, finance, and aerospace, he added.
Brazil also seeks to deepen collaboration with China in addressing climate change, said Lula, noting the country welcomes China’s participation in the upcoming COP30 in Belem.
He also congratulated China on successfully hosting the fourth ministerial meeting of the China-CELAC (the Community of Latin American and Caribbean States) Forum this year.
Lula said Brazil is willing to deepen multilateral communication and coordination with China, jointly oppose unilateralism, and uphold multilateralism and free trade so as to promote world peace and development.
Following the meeting, the two sides witnessed the signing of cooperation documents in such fields as fiscal and financial affairs, artificial intelligence, development strategies alignment and aerospace.
Brazil ratifies China tax treaty changes in step towards modern fiscal alignment
The protocol amending the Brazil–China double tax treaty is aimed at improving legal certainty, reducing withholding taxes, and preventing treaty abuse.
By Paulo Victor Vieira da Rocha and Murilo Jakuk (VRMA Advogados)
In April 2025, the Brazilian Senate approved Legislative Decree No. 170/2025, ratifying the protocol that amends the Convention between the Government of the Federative Republic of Brazil and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.
This update represents a significant milestone in the evolving tax and economic relationship between the nations, especially given the increasing volume of trade and investment flows between Brazil and China. The ratification follows the approval of the same protocol by the Brazilian Chamber of Deputies in November 2024, shortly before President Xi Jinping’s visit to Brazil, further emphasising the diplomatic and economic relevance of this move.
Background to the measure
The original Brazil–China tax treaty was signed in 1991 and entered into force in 1994. At that time, both countries occupied very different positions in the global economic order.
Over the past three decades, the two economies have undergone substantial transformation, and their bilateral relationship has deepened notably, with China emerging as Brazil’s largest trading partner. However, the original treaty provisions failed to keep pace with these developments, lacking important mechanisms commonly found in more recent tax treaties, such as more precise definitions of permanent establishments, clearer dispute resolution frameworks, and up-to-date anti-abuse rules.
As a result, investors and tax authorities often faced ambiguity when interpreting and applying the agreement’s terms.
The main changes under the new protocol
The new protocol introduces key changes designed to update the treaty in line with international standards, particularly those promoted by the OECD and reflected in the BEPS project.
Among the most notable modifications is the refinement of the permanent establishment concept. The updated text includes a more detailed definition that clarifies when the provision of services may create a taxable presence in the other country. This change provides greater legal certainty for service-based business models, which are increasingly common in the global economy.
The protocol also revises the treaty’s rules on withholding taxes, reducing rates on dividends, interest, and royalties under specific conditions. For example, dividends paid to a company holding at least 25% of the paying company’s capital may now be taxed at a maximum rate of 10%, promoting deeper cross-border equity investments.
Another important revision concerns the taxation of royalties. Under the original treaty, royalties were subject to a maximum withholding tax rate of 25% when related to the use of trademarks, and 15% in all other cases. The new protocol significantly reduces these rates, enhancing the treaty’s competitiveness and alignment with international standards. Specifically, royalties paid for the use or right to use trademarks may now be taxed at a maximum rate of 15%, while all other royalties are capped at 10%, provided the recipient is the beneficial owner and a resident of the other contracting state. This change lowers the tax burden on cross-border technology transfers, licensing agreements, and intellectual property use – key components in modern international business.
Additionally, the inclusion of a principal purpose test aligns the treaty with the anti-abuse provisions recommended by the OECD. This clause allows tax authorities to deny treaty benefits where obtaining such benefits was one of the principal purposes of a transaction or arrangement. The aim is to prevent treaty shopping and ensure that the treaty is applied in good faith, consistently with its original intent. The protocol also enhances the treaty’s dispute resolution mechanisms by introducing a more robust mutual agreement procedure, offering taxpayers a formal way to resolve disputes between the contracting states and minimise the risk of double taxation.
These amendments demonstrate Brazil’s growing commitment to aligning its tax treaty network with global norms. They also follow a broader trend observed in recent years, which includes Brazil’s updated agreement with the UK and the adoption of the OECD’s pillar two framework through Provisional Measure 1,262/24.
Final considerations regarding the Brazil–China tax treaty update
The ratification of the new protocol not only brings technical improvements to the Brazil–China tax treaty but also symbolises a broader geopolitical and economic realignment. As Brazil continues to pursue OECD accession and expand its network of modernised double tax agreements, this protocol reinforces the country’s commitment to transparency, legal certainty, and competitiveness in international taxation.
For investors and multinational enterprises, the updated agreement reduces the risk of double taxation and enhances predictability in tax treatment. It is particularly relevant for industries such as agribusiness, mining, and infrastructure, where Chinese investment has been significant and growing.
In the broader context, this modernisation strengthens bilateral economic ties and provides a model for how Brazil can recalibrate its international tax agreements to match the evolving dynamics of global trade and investment.
BRICS in Brasil - Global South Rises
Featured contributor Prof Josef Mahoney joined CGTN to give a wrap-up of the #brics meeting in Rio.