Trade between Brazil and China reached an unprecedented US$143 billion during the first nine months of 2026, driven primarily by a sharp increase in Brazilian crude oil exports, according to a report from the Brazil-China Business Council. The surge follows disruptions in Gulf oil supplies linked to the conflict involving Iran, prompting China to diversify its sources.

Brazilian shipments to China expanded 12 percent to US$84.7 billion from January through September, while imports from China grew by nearly 10 percent to US$58.6 billion. This resulted in a trade surplus of US$26.1 billion for Brazil, representing 42 percent of the country’s total global trade surplus during the period.

Crude oil exports were the major contributor to this growth, rising 49 percent in value to reach a record US$21.8 billion. Volume shipments increased 27 percent, with prices climbing 16.8 percent. China accounted for half of Brazil’s crude exports, significantly surpassing India, the next-largest buyer by a wide margin. The report attributed this shift to heightened tensions in the Middle East and the potential for further disruption to oil transit through the Strait of Hormuz. The strait’s effective closure by Tehran following US and Israeli military actions since late February cut off a critical supply route responsible for over half of China’s seaborne crude imports, according to data from tracking firms.

Despite an overall decline of 32 percent in China’s crude imports during the second quarter, Chinese buyers continued to increase their purchases from Brazil. Brazilian crude exports rose 28.7 percent globally, with sales to India up 165 percent. Oil now constitutes 25.8 percent of Brazilian exports to China, second only to soybeans, which account for 35.4 percent. The state of Rio de Janeiro emerged as the largest Brazilian exporter to China, supplying 89 percent of the crude oil.

However, the rapid growth in oil exports showed signs of tapering in the third quarter. While the council had reported a 22 percent rise in exports to China during the first half of the year with China taking 54 percent of Brazilian crude, Gulf oil exports—excluding Iran—recovered to over 81 percent of pre-war levels in September following a US-Iran agreement in June. Nevertheless, Iranian attacks on tankers increased again in October.

In contrast to oil, Brazilian beef exports to China declined 8.5 percent to US$5.5 billion amid volume drops of 22 percent. The decrease is linked to China reaching its annual quota of 1.1 million tonnes under safeguard measures, which triggered a 55 percent surtax on excess shipments from October. Consequently, beef exports to China plunged in September compared to a year earlier, and China fell to fifth among Brazilian beef buyers that month, behind the United States.

On the import side, electrified vehicles from China led growth. Purchases of plug-in hybrid electric vehicles rose 89 percent to US$2.87 billion, while battery electric vehicle imports surged 341 percent to approximately US$2.4 billion. Chinese brands supplied 86 percent of the electrified vehicles Brazil imported, which accounted for about 10 percent of total Brazilian imports from China. However, imports dropped sharply in July after Brazil raised import duties on these vehicles to 35 percent, partially rebounding by September.

Additionally, Brazilian agricultural exports to China showed early gains in new markets. Sorghum exports reached US$170 million, with China absorbing 95 percent of these shipments. Exports of spodumene, a key lithium-bearing mineral, climbed 339 percent to US$172.3 million, with 97 percent destined for China.