China eyes Brazil rail and ports, warns on taxes

The issue was discussed during the panel “Logistics and Infrastructure: Connections Linking Ports, Railways and Chinese Investment in Brazil” at the Summit Valor Econômico Brazil-China 2026 on Wednesday (25) in Shanghai. The event is organized by Valor Econômico in association with the Brazilian Center for International Relations (Cebri) and the Chinese People’s Association for Friendship with Foreign Countries (CPAFFC). The panel was moderated by Valor Executive Editor Zínia Baeta.

“The biggest barrier in Brazil is the legal and tax environment, which is highly fragmented,” said Li Sisheng, executive vice president of Power China International. In his view, that helps explain why some foreign companies have struggled with investments in the country. He noted, however, that the company has $4 billion invested in Brazil and is studying projects in highways, railways, and energy.

Leonardo Ribeiro, rail transport secretary at Brazil’s Transport Ministry, said the government wants to raise railways’ share of the country’s transport matrix from 20% to 35%. According to Ribeiro, Brazil’s Railway Legal Framework now provides laws, regulations, and standardized contracts that ensure legal certainty for investment in the sector. “We also have strategies to provide guarantees so these projects can move forward under a risk-sharing structure in which the government will share with the private sector any extreme situations.”

Ding Songbing, general manager and head of strategy and research at Shanghai International Port, said there is ample room for the development and modernization of Brazilian ports.

“Ships are getting larger, and ports need to adapt,” he said. In his view, climate adaptation as well as automation and digitalization of processes are two other areas with strong potential.

Zhang Jianyu, deputy secretary-general and chief development director of the Belt and Road International Green Development Alliance, said China and Chinese stock exchanges have been tightening environmental requirements for companies, and those rules also apply to their operations abroad. “If a Chinese company does not have good sustainability results in the Brazilian market, for example, it will face difficulties raising capital here in China.”

The “Summit Valor Econômico Brazil-China 2026” is the third event of its kind organized by the newspaper in China since 2024. This edition is sponsored by BYD, the Rio city government through Invest.Rio, Embratur, the Rio de Janeiro state government, and ApexBrasil, with support from the São Paulo city government and São Paulo Negócios, Suzano, CBMM, Alibaba, the World Resources Institute, the Climate and Society Institute (iCS), CNA Senar, and the National Confederation of Industry (CNI).