Brazil and China on Tuesday in Beijing signed a memorandum of understanding to set up an investment fund to finance infrastructure projects in the Brazilian economy, according to information released by the Brazilian government.

The Minister of Planning, Development and Management of Brazil, Dyogo Oliveira, said in a statement that the fund will have an initial allocation of US$20 billion, of which US$15 billion will be provided by China and the remaining US$5 billion by Brazil.

The memorandum was signed in Beijing by the International Affairs Secretary of the Ministry of Planning, Development and Management of Brazil, Jorge Arbache, who said that the establishment of the fund is a sign of foreign interest in Brazil.

The sectors that will receive funds include logistics, energy and mineral resources, advanced technology, agriculture, agro-industry and agricultural storage, industrial and digital services, among others.

The formalisation of this fund was negotiated by President Michel Temer on a visit he made to China in September, although the original idea was discussed in May 2015 by Chinese Prime Minister Li Keqiang and former President Dilma Rousseff. (macauhub)