The China-Brazil cooperation fund creates a new model of financial cooperation, the government-run Xinhua News agency reports. Ambassador to Brazil Li Jinzhang made the comment at the launch of the US$20-billion fund in Sao Paulo earlier this week.

“With our comprehensive strategic partnership, Brazil is a priority country for China to expand industrial capacity,” said Mr Li. “The China-Brazil fund guarantees the financial mechanism to expand cooperation.”

The fund will target investments in infrastructure, manufacturing, agri-business and technology.