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"These measures will be beneficial to startups, as they normally have to grapple with challenges like insufficient capital and weak risk tolerance. And preferential tax policies will create new momentum for entrepreneurship and innovation," said Bai Ming, a senior researcher with a Ministry of Commerce think tank.

Besides launching the fund, the two sides also agreed to match up their lists of priority areas and specific projects in bilateral production capacity cooperation and hammer out a list of early harvest projects.

He noted that China has been Brazil's biggest trading partner for six years in a row while Brazil has been among China's top 10 for five consecutive years.

It adds that by observing the principles of combining peacetime and wartime demands, maintaining all time vigilance and being action-ready, the PLA Second Artillery Force will prefect the integrated, functional, agile and efficient operational duty system.

During the consultation, Yu also asked for opinions on China's 13th Five-Year Plan (2016-2020) which he described as a vital period for turning the country into a moderately prosperous society.