How China is Using BRICS to Change the World Order

Summary

The 2023 BRICS Summit marked a significant shift in global power dynamics, emphasizing the move towards a multipolar world. BRICS, comprising Brazil, Russia, India, China, and South Africa, announced the inclusion of six new countries: Iran, Saudi Arabia, UAE, Argentina, Egypt, and Ethiopia. Together, the expanded BRICS controls nearly half the world's population and a third of global GDP. The alliance's aim is to challenge Western dominance, reduce reliance on the US dollar, and foster fairer global trade. China's key role in the summit, especially through deals with Saudi Arabia and Iran, highlights its growing influence.

Takeaways

• 🌍 BRICS is expanding in January 2024, welcoming six new countries: Iran, Saudi Arabia, UAE, Argentina, Egypt, and Ethiopia.
• 🇨🇳 China has secured major deals with Saudi Arabia and Iran, including a nuclear power plant in Saudi Arabia and an airport expansion project in Iran, bypassing the US dollar for crude oil.
• 💵 The BRICS alliance is focusing on trading in local currencies or valuable commodities, moving away from US dollar dominance.
• 🛢️ With the new members, BRICS countries will control 50% of global oil production, giving them significant power in global trade and resource management.
• 🇧🇷 Brazil and Argentina are collaborating to reduce reliance on the US dollar, with Argentina starting to trade with China using the Chinese yuan.
• 🌐 The BRICS alliance aims to give smaller, developing countries a voice in global affairs, offering an alternative to Western-led financial systems.
• 💬 The BRICS Summit emphasized the importance of dialogue, with India and China agreeing to deescalate border tensions and Egypt and Ethiopia resuming peace talks over the Nile River dispute.
• 📊 The BRICS alliance is seen as a challenge to the US-led world order, aiming to create a more multipolar global structure.
• 💡 Some BRICS members, like Brazil’s president, have expressed long-term goals of creating a common BRICS currency to further reduce dependence on the US dollar.
• 🌱 Through China’s Belt and Road Initiative, BRICS is helping to drive industrialization and development in many African nations, providing them with new economic opportunities.

Q & A

What is the main focus of the BRICS alliance as discussed in the video?

The main focus of the BRICS alliance is to create a multi-polar world where developing countries' voices are heard, and they are treated fairly. It aims to challenge Western hegemony and reduce reliance on the US dollar by promoting trade in local currencies and commodities.

Which six countries are set to join BRICS in January 2024?

The six countries joining BRICS in January 2024 are Iran, Saudi Arabia, the UAE, Argentina, Egypt, and Ethiopia.

Why is China's role in BRICS considered a 'massive victory' at the 2023 BRICS Summit?

China secured significant deals with Saudi Arabia and Iran at the 2023 BRICS Summit, including a nuclear power plant project with Saudi Arabia and a $2.7 billion airport expansion with Iran, which will be paid for in crude oil, bypassing the US dollar.

What is the significance of BRICS trading in local currencies or commodities?

Trading in local currencies or commodities allows BRICS members to bypass the US dollar, reduce dependence on Western financial systems, and mitigate the risks of sanctions, especially for countries like Iran.

How does the BRICS alliance impact global oil production?

With the addition of Saudi Arabia, the UAE, and Iran, BRICS countries will control 50% of global oil production, giving them significant leverage in global energy markets and the ability to trade oil without using the US dollar.

What does BRICS mean for developing countries in Africa, like Egypt and Ethiopia?

For African countries like Egypt and Ethiopia, joining BRICS provides an opportunity to break away from Western financial dominance, reduce import costs by trading in local currencies, and increase access to investment and development projects led by BRICS nations, particularly China.

What long-term goals does BRICS have regarding a common currency?

BRICS members, like Brazil’s president, have expressed a desire for a common currency, possibly backed by gold, to reduce reliance on the US dollar. However, this is seen as a long-term strategic goal, with the short-term focus on reducing dollar dependency and increasing local currency trade.

How has China used its Belt and Road Initiative (BRI) to strengthen relationships with BRICS members?

China has used the Belt and Road Initiative to invest in infrastructure projects across developing countries, including many in Africa. These investments have given smaller countries a stronger voice in international matters and deepened their economic ties with China and the BRICS community.

What role does Saudi Arabia play in the BRICS alliance, and why is it important?

Saudi Arabia is a key oil producer and long-time US ally, but its increasing ties with China, such as buying a stake in a Chinese petrochemical company, signal its shift toward the BRICS alliance. Saudi Arabia’s inclusion strengthens BRICS' control over global oil supply chains.

What diplomatic impacts has the BRICS alliance had, according to the video?

The BRICS alliance has facilitated diplomatic resolutions, such as China and India deescalating border tensions and Egypt and Ethiopia resuming peace talks over their territorial dispute. These examples illustrate how BRICS fosters dialogue and cooperation among its diverse members.