China's Xi tells Lula ties with Brazil a diplomatic priority for Beijing

China has made relations with Brazil a diplomatic priority, President Xi Jinping told visiting Brazilian President Luiz Inacio Lula da Silva in Beijing, state media reported.

Lula is on an official visit to China from April 12-15 and was scheduled to hold a meeting with Xi on Friday. 

The meeting comes a day after Lula lashed out at the power of the US dollar and the IMF.

The veteran leftist, whose government recently announced a deal with Beijing to trade in their own currencies - ditching the dollar as an intermediary - is in China to boost ties with his country's top trading partner and spread his message that "Brazil is back" as a key player on the global stage.

He was greeted by Xi on Friday afternoon at a red carpet ceremony outside Beijing's Great Hall of the People, where a military band played the national anthems of Brazil and China.

Earlier, Lula took aim at the US dollar, criticising its ubiquitous use in almost all global trade transactions.

"Who decided the dollar would be the (world's) currency?" Lula said in Shanghai at a ceremony to inaugurate his political ally Dilma Rousseff as president of the development bank set up by the BRICS nations (Brazil, Russia, India, China, and South Africa).

"Why can't a bank like the BRICS bank have a currency to finance trade between Brazil and China, between Brazil and other BRICS countries?...

Today, countries have to chase after dollars to export, when they could be exporting in their own currencies."

Lula also had strong words for the International Monetary Fund, alluding to accusations the IMF forces overly harsh spending cuts on cash-strapped countries like Brazil's neighbour Argentina in exchange for bailout loans.

"No bank should be asphyxiating countries' economies the way the IMF is doing now with Argentina, or the way they did with Brazil for a long time and every third-world country," he said.

"No leader can work with a knife to their throat because (their country) owes money."

READ MORE: Brazil's President Lula on quest to repair Brazil-China relations

'Brazil is back!'

Lula, who took office in January, is looking to reposition Brazil as a global go-between and deal broker, seeking friendly ties across the board after four years of relative isolation under his far-right predecessor, Jair Bolsonaro.

The Brazilian leader earlier attended a wreath-laying ceremony at the Monument to the People's Heroes in Tiananmen Square and met with Chinese Premier Li Qiang.

"Brazil is back!" Lula promised in Shanghai, where he arrived on Wednesday night.

"The time when Brazil was absent from major world decisions is in the past. We are back on the international stage, after an inexplicable absence."

Brazil has positioned itself as a mediator in the conflict, while China is under pressure to do more. There are concerns in the West that they both are overly cosy with Russian President Vladimir Putin.

Both countries have refused to join Western nations in imposing sanctions on Russia for its invasion.

China is Brazil's biggest export market, buying tens of billions of dollars worth of soybeans, beef, and iron ore.

Under the currency deal announced in March, Brazil and China have named two banks - one in each country - to conduct their massive trade and financial transactions by directly exchanging yuan for reais and vice versa, instead of going through the dollar.

China has similar deals with Russia, Pakistan, and several other countries.

Lula, who previously led Brazil from 2003 to 2010, visited US President Joe Biden in February.

He is now seeking to smooth relations with China after ties deteriorated under Bolsonaro.

The 77-year-old president was initially scheduled to make the trip in late March but had to postpone it after coming down with pneumonia.

He is travelling with a large delegation of about 40 high-level officials, including cabinet ministers, governors, and members of Congress.

READ MORE: Brazil, China strike deal to ditch dollar for trade