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China is planning to transfer 10 million tons of steel capacity to Brazil, and several large domestic steel companies — including Ansteel, Masteel, Baosteel and Wuhan Iron and Steel — have all expressed interest, according to Zhang Shengsheng, general manger of an investment company. 

The move will not only help to cut steel overcapacity in China, it will also help avoid the anti-dumping and anti-subsidy trade investigation that has been launched by Western countries against China, said Zhang. 

The Brazilian government looks forward to the new project, which will boost local employment and increase tax revenue. In exchange, Brazil has agreed to provide 20 square kilometers of land for free. Legal proceedings are already underway. 

Details of the project are still being discussed, including market demand, equipment and return on investment. If all goes according to plan, the project will not only meet Brazilian demand, but will also cover the needs of other South and North American countries, according to Xu Zhongbo, vice-president of the preparatory committee for the project. 

Besides Brazil, India has also expressed interest in purchasing Chinese technologies and equipment, as was discussed during the 9th China International Steel Congress held in Beijing on May 16.