BRICS seeks to expand its membership and become a champion of the "Global South," with over 40 countries expressing interest in joining the bloc to challenge Western dominance and address grievances related to abusive trade practices and neglect of poorer nations' development needs, among others. However, observers note that BRICS has a limited track record and may struggle to deliver on expectations.
South African President Cyril Ramaphosa supports expanding the Brics group of emerging market powers and believes an expanded Brics would represent a diverse group of nations that share a common desire for a more balanced world order.
World markets experienced some relief as the bond squeeze eased, with investors eagerly awaiting signals from the Federal Reserve conference in Jackson Hole and hopeful for a resurgence of the early-year AI craze. President Xi Jinping's attendance at the BRICS summit in South Africa also provided some positivity for China's economy.
Chinese President Xi Jinping and former Brazilian President Luiz Inácio Lula da Silva emphasized the need for the Global South to have more influence, as they attended a summit with other BRICS leaders to discuss boosting their presence on the world stage and possibly introducing a common unit of currency.
The BRICS summit, which aims to establish a new world monetary order and give voice to underrepresented nations, is criticized for being a nebulous concept without concrete achievements and is primarily centered around China.
Indian Prime Minister Narendra Modi expressed his support for the expansion of BRICS membership, while Chinese President Xi Jinping called for the process to be accelerated, potentially boosting the group's global influence and countering the dominance of the Group of Seven. Several nations have shown interest in joining, with China taking the lead in pushing for expansion. However, India has advocated for a cautious approach due to concerns that the bloc may become influenced by its neighbor.
BRICS, comprised of Brazil, Russia, India, China, and South Africa, now represents almost a third of global GDP and is surpassing the economic influence of the G7, with over 40 nations expressing interest in joining.
Six new countries, including Argentina, Iran, the United Arab Emirates, Saudi Arabia, Ethiopia, and Egypt, have become members of the BRICS alliance, as announced by South African President Cyril Ramaphosa during the summit.
China has promised extensive cooperation in the energy sector with South Africa and advised streamlining tender processes and relaxing BEE policies to make cooperation easier, according to Chinese officials at the BRICS summit in Johannesburg.
The BRICS New Development Bank is receiving applications from 15 countries to join, as it aims to lessen its dependence on the US dollar and prioritize local currency lending.
Indian Prime Minister Narendra Modi addressed the 15th BRICS Summit and emphasized the potential for BRICS and friendly countries to strengthen a multipolar world, while announcing the admission of six new countries into the bloc starting next year. He also highlighted India's cooperation with Africa, the success of Chandrayaan-3, and India's growing trade partnership and investment in Africa.
The BRICS summit is aiming to reduce reliance on the U.S. Dollar, as the coalition confirms new members including UAE, Egypt, Ethiopia, Saudi Arabia, and Argentina, and discusses the possibility of a new payment system and currency backed by gold.
The BRICS alliance has inducted six new countries into the bloc during the summit in Johannesburg, and South Africa's President Cyril Ramaphosa has confirmed that a second phase of expansion will follow in the coming months.
South Africa is poised to expand its agricultural trade and globalize its economy as it enhances its position within the BRICS grouping, with the ZZ2 Farming Company using cutting edge technologies and tariff agreements to facilitate agricultural trade with other BRICS countries; the expansion of BRICS will create a powerful group of growth economies that will demand multilateral reforms, increase collaboration among growth economies, and enhance the use of regional currencies.
The BRICS 2023 Summit saw the expansion of the alliance with the addition of six countries, potentially leading to a shift in the global economic order and significant de-dollarization efforts, while notable absences by Vladimir Putin and Chinese President Xi Jinping raised concerns, and China and India made progress in their border talks.
The expansion of BRICS to include Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates will make the bloc represent 46 percent of the world population and 37 percent of global GDP, but China's economic dominance within the group raises questions about whether it will truly be an "equal partnership."
Indian Prime Minister Narendra Modi's exchange with Chinese President Xi Jinping at the BRICS summit in South Africa suggests a potential thawing of the financial relationship between the two countries, with India showing interest in a larger Chinese presence in its businesses and a softening of its screening policy for investments.
The BRICS expansion and their de-dollarization efforts have been met with a relatively calm response from the US, Germany, and the European Union, emphasizing the importance of countries choosing partnerships based on their national interests.
The absence of President Xi Jinping from the G20 summit and the expansion of the Brics bloc highlight the declining interest of non-Western powers in Western-led institutions, signaling a shift towards alternative economic and financial arrangements.
China's President Xi Jinping is shifting away from the aggressive "wolf warrior" diplomacy and positioning China as a global peacemaker, seeking alliances with the West and Asia, possibly due to economic challenges and a desire to establish more partnerships internationally.
U.S. President Joe Biden plans to offer financial support to developing countries in Africa, Latin America, and Asia as an alternative to China's Belt and Road project, taking advantage of Chinese President Xi Jinping's absence at the G20 meeting and China's economic downturn.
Chinese President Xi Jinping will host the leaders of heavily indebted nations, Zambia and Venezuela, for state visits to China, prioritizing bilateral diplomacy over participation in the G-20 summit in India, symbolizing China's preference for conducting diplomacy on its home soil or within groups where it holds more influence.
Venezuelan President Nicolas Maduro seeks China's support to join BRICS and believes that the relationship between China and Venezuela can strengthen both BRICS and the China-CELAC group.
Leaders from Brazil, Russia, India, China and South Africa recently announced that Saudi Arabia, along with five other nations, would be invited to join the BRICS organization, potentially causing fears of economic catastrophe in the U.S., although experts argue that this scenario is highly unlikely.
The BRICS expansion, which includes countries like Saudi Arabia, the UAE, and Iran, has raised concerns in the U.S. and EU as it poses a threat to Western-dominated financial markets, while China's influence grows and the alliance aims for de-dollarization in global trade.
The BRICS group invited six new members, including Saudi Arabia and the United Arab Emirates, indicating a move towards energy dominance and diversification, but internal divides and strategic rivalries within the bloc may hinder its ability to challenge the current global energy order.
Saudi Arabia's Crown Prince Mohammed bin Salman's attendance at the recent G20 summit in India, along with its inclusion in the China-dominated BRICS coalition and signing of the ship-to-rail economic corridor supported by President Joe Biden, highlights the complex web of alliances and economic opportunities arising from the rivalry between the US and China. These developments show the various economies caught between the two powers seeking to build their own strategic alliances and spheres of influence.
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