Brazilian President Luiz Inácio Lula da Silva (right) shakes hands with Dilma Rousseff after the latter took office as the new President of the BRICS New Development Bank in Shanghai, China on April 13, 2023. Photo: AFP

Chinese companies in Brazil are putting more emphasis on infrastructure and manufacturing in an active response to the country's economic development needs and the growing potential of the market, one of the largest in Latin America.

From power stations to production lines for electronic devices, the widening and deepening participation of Chinese companies in Brazil's development exemplify rising enthusiasm among Chinese firms as the bilateral relations enter a new stage for growth amid Brazilian President Lula's four-day visit to China.

China's electrical appliance manufacturing giant Midea Group announced on Wednesday an investment of over 700 million yuan ($102 million) in Brazil to build new factory there as part of the company's follow-up efforts in putting more weight in the market.

Midea Industria do Brasil, a subsidiary of Midea Group, held a groundbreaking ceremony for its new factory in Brazil. The new factory is located in Pouso Alegre, Minas Gerais. It covers an area of over 70,000 square meters and will have an annual production capacity of up to 1.3 million units, according to a statement that Midea Group sent to the Global Times.

The factory, the company's third in Brazil, will integrate digital production technologies and innovative science and technology, and the first batch of intelligent refrigerators will be produced and launched in July 2024, with simultaneous entry into the local and other South American markets, according to the statement.

The project is expected to bring new economic growth to the region and further promote the development of the local community.

China's large infrastructure company Power Construction Corp of China (PowerChina) also hopes to strengthen business connectivity with Brazil based on solid foundations cultivated over recente years.

The company has been playing its part in boosting Brazil's development since it entered the market 16 years ago. During this period, 50 contracts have been signed, worth $2.48 billion. So far, 44 contracts have been completed, mainly involving power transmission, transformation lines and thermal power stations, according to the company.

With the improvement in bilateral relations, PowerChina is considering expanding its investment.

Other domestic industry giants including Chinese consumer electronics producer TCL are also planning to expand their business in Brazil.

TCL will roll out smart products such as large-size TVs and air conditioners in the Brazilian market, while striving to increase its market share in the country, the company told the Global Times on Wednesday.

TCL has established a joint venture company with SEMP, a Brazilian electrical appliance company, to develop Brazil's home appliance, mobile phone and other markets. 

By the end of 2022, TCL's smart screens ranked third in terms of shipments to Brazil.

Chinese companies' investment in Brazil has been expanding rapidly. In 2022, the investment of Chinese companies in the country rose by 53.1 percent year-on-year. 

Moreover, the bilateral trade volume between China and Brazil expanded to $171.49 billion last year, an increase of nearly five percent year-on-year.

Lula's visit is widely expected to further boost bilateral cooperation, including the use of local currency in trade settlement and the Belt and Road Initiative, adding more momentum for companies' future investment there.