China is set to invest up to US $50 billion in Brazil in order to help refurbish the country's aging infrastructure as well as build new ones, Brasilia announced ahead of an official visit by Premier Li Keqiang.

The deal between China and Brazil is due to be signed by banks from both countries when Prime Minister Li arrives in the country next week, reported BBC.

Like Us on Facebook

The money that China will offer Brazil will reportedly go into a railway development that would link Brazil's Atlantic coast to the Pacific coast of Peru. The project is expected to reduce the cost of exports to the Southeast Asian country.

The fund will also finance a joint venture between the two countries for the production of steel.

Currently, Brazil is exporting majority of its iron ore to China.

"We shall have to await the end of the visit to expand upon which projects," said Brazil's Undersecretary of State Jose Graca Lima, who oversees Asia and Oceania 

In addition to the railway project, funds from China is set to be invested in car parts, energy, ports, hydroelectric power, and other railways.

Brazil is currently battling its fifth straight year of poor growth, following a graft scandal that involved the state oil giant Petrobras. The country now seeks to restore its infrastructure, especially as the Rio Olympics, the first Games to be held in South America, is set to occur next year, according to the South China Morning Post.

Since 2009, China has reportedly been Brazil's chief trading partner, as well as one of its main sources of foreign investment.

Prime Minister Li will be arriving in the capital Brasilia Monday next week for an official visit. He is also set to travel to Rio de Janeiro before a visit to neighboring countries. Three days later, Li will be leaving for Colombia, then Peru and Chile on the South American swing, in an aim to boost Beijing's influence in the region, Channel News Asia reported.

Tagschina invests in brazil, china brazil, china brazil deal, brazil infrastructure, Brasilia infrastructure projects, Rio de Janeiro, $50 Billion deal, Brasilia