China and Brazil have begun assessing potential investment co-operation in new projects in the South American nation, Brazilian newspaper Jornal do Brasil reported this week. The move comes after the two countries last year signed investment agreements worth more than US$50 billion.

A project under consideration is a transcontinental railway connecting Brazil to Peru, the report said.

The new co-operation projects are to be funded by the China Latin America Industrial Investment Cooperation Fund, headquartered in Beijing. China would make available US$15 billion for the fund; Brazil would contribute with US$5 billion, according to Jornal do Brasil’s report.

During the visit of Chinese Premier Li Keqiang to Brazil in May last year, both sides sealed investment agreements worth US$53 billion. At the time, Mr Li pledged to set up a US$30-billion fund to finance projects promoting industrial co-operation between China and Latin America.