As of 2025, the China Development Bank (CDB) has made significant strides in fostering financial cooperation with Brazil, injecting new momentum into the upgrading of bilateral relations and collaboration between China and Latin America. These efforts highlight the bank's pivotal role in driving the practical, mutually beneficial cooperation between the two regions.

In March 2025, CDB completed the full disbursement of a RMB 5 billion credit line to the Brazilian Development Bank (BNDES). This project is part of the key cooperation initiatives outlined during President Xi Jinping's state visit to Brazil in November of the previous year. The loan funds are intended to support trade exchanges between China and Brazil in industries such as oil and petrochemicals, food, metallurgy, and papermaking.

In the same month, CDB also finalized a major financing deal for the ±800kV ultra-high voltage direct current (UHVDC) transmission project in northeastern Brazil, disbursing the latest tranche of RMB loans for the procurement of essential equipment. This ambitious project will establish 1,468 kilometers of transmission lines to integrate and transport clean energy—wind, solar, and hydroelectric power—generated in Brazil's northeastern and northern regions. Upon completion, the system will provide electricity to approximately 12 million people across core areas, including the federal district of Brasília.

These financial achievements serve as a testament to the flourishing China-Brazil cooperation and symbolize the broader, ever-expanding economic and financial collaboration between China and Latin America. Although geographically distant, both China and Latin America share a common vision as part of the "Global South," bound by mutual goals and aspirations that continue to strengthen their ties.

CDB's Efforts in Strengthening Financial Cooperation in Latin America

For many years, CDB has been at the forefront of promoting financial collaboration between China and Latin America, playing a key role in the establishment of the first multilateral financial cooperation mechanism between the two regions—the China-Latin America Development Financial Cooperation Mechanism. The bank has also spearheaded initiatives such as the China-Latin America and China-Caribbean Infrastructure Special Loan, which amounts to USD 22.5 billion, and contributed to the creation of a USD 10 billion capacity cooperation investment fund. These financial initiatives aim to bolster infrastructure, energy, mining, manufacturing, electricity, and telecommunications in Latin America.

As of April 2025, CDB had provided over USD 165 billion in financing support for more than 260 projects across 21 Latin American countries. These projects have not only generated strong economic returns but have also delivered substantial social benefits, contributing significantly to the economic development and improvement of living standards in the region.

Transformative Projects Across Latin America

In Argentina, CDB has financed the first phase of the Belgrano Freight Railway Renovation Project, which increased the railway's capacity by 235% and significantly improved train speed and stability. As a crucial transportation route connecting Argentina's grain-producing regions with ports, this upgrade has substantially reduced transportation costs, boosting the competitiveness of Argentine agricultural exports and enhancing foreign exchange earnings.

In Peru, CDB's financing supported the acquisition of energy companies by China Southern Power Grid, which has since expanded its operations in Peru's "distribution + green power" sector. The company now provides electricity to over 160,000 households across more than 1,600 square kilometers in northern Lima and its surrounding areas. This initiative has been instrumental in sharing China's expertise in grid operation management, digital grid construction, and integrated energy services, significantly improving local power supply capacity and the level of distribution services.

Looking Ahead: Strengthening Practical Cooperation

Moving forward, CDB plans to further refine its role in supporting the high-quality development of the Belt and Road Initiative (BRI). It will focus on key areas of practical cooperation between China and Latin America, utilizing a wide range of specialized financial services and products to provide continued financing support. By doing so, CDB aims to contribute to the advancement of South-South cooperation and the building of a China-Latin America community of shared destiny.

For international business professionals, these developments present significant opportunities for engagement in Latin America's rapidly expanding infrastructure and energy sectors. As CDB deepens its involvement in the region, it opens doors for further cross-border investment, innovation, and development. For investors, banks, and multinational companies, staying attuned to CDB's initiatives can provide insights into the strategic directions shaping the future of Latin American economies, particularly in sectors crucial for sustainable growth. These efforts could also offer valuable lessons for similar initiatives in other emerging markets.

As global financial institutions and multinational corporations increasingly look towards Latin America for growth opportunities, understanding the dynamics of China's financial collaboration in the region will be essential for positioning strategies that align with these transformative developments.