Sino-Brazilian cooperation has advanced rapidly in the twenty-first century. Although its successes have made it a model for South-South cooperation, the relationship also faces many challenges. This study focuses on the trade imbalance and the resultant risk of “deindustrialization” for Brazil, proposing that fostering technology transfer in the context of investments and situating Chinese companies in Brazil are two ways to mitigate its negative effects. However, the main response to these challenges is well-defined, comprehensive development planning by the Brazilian State with a strong commitment to reindustrialization. Since South-South cooperation is often more complex than North-South or North-North cooperation and few relevant academic studies exist on cooperation between developing countries, this article also advocates for a rational and holistic vision of Sino-Brazilian cooperation.