How China is Using BRICS to Change the World Order
Summary
TLDRThe 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.
Outlines
🌍 BRICS Expands and Challenges U.S. Global Dominance
China has secured a major victory at the 2023 BRICS Summit, signaling the end of a U.S.-led unipolar world and the rise of a multipolar global structure. The BRICS nations—Brazil, Russia, India, China, and South Africa—are focused on breaking free from Western hegemony. The summit's key outcome is the expansion of BRICS in January 2024, with six new members: Iran, Saudi Arabia, the UAE, Argentina, Egypt, and Ethiopia. This expansion will include 11 countries, representing half of the world's population and a third of the global GDP. China is the biggest beneficiary, securing deals with Saudi Arabia and Iran, including the development of a nuclear plant and a $2.7 billion airport project, paid for in oil. These developments highlight BRICS' strategy to bypass the U.S. dollar in global trade, challenging Western dominance.
💼 Saudi Arabia and the UAE Strengthen Ties with BRICS
Saudi Arabia and the UAE, two of the world's top oil producers, have joined BRICS, diversifying their alliances and reducing reliance on Western nations. Saudi Arabia, a longtime U.S. trading partner, is building stronger relations with China, seen through the introduction of Mandarin in schools and a $3.6 billion petrochemical deal. The UAE, with its $1 trillion sovereign wealth fund, aims to increase capital investment in BRICS projects, adding financial muscle to the alliance. Both nations' inclusion signifies their strategic shift toward the Global South, reinforcing the BRICS objective of bypassing the U.S. dollar in international trade.
🏭 Iran and Argentina Gain New Economic Lifelines
Iran, heavily sanctioned by the U.S., benefits from joining BRICS as the alliance provides alternative trade options, bypassing the U.S. dollar. Iran's ability to conduct trade with other BRICS nations, such as using crude oil to pay for infrastructure projects, offers it economic resilience. Argentina, facing long-standing currency issues, joins to diversify its trading partners and reduce its dependence on the U.S. dollar. Argentina brings valuable minerals and raw materials to the BRICS group, contributing to the alliance's future growth despite lacking the deep financial resources of other members.
🌍 Egypt and Ethiopia's Quest for Financial Independence
Egypt and Ethiopia have joined BRICS primarily to break free from Western-dominated financial systems, which have burdened them with rising import costs. Both countries plan to trade with China, India, and Russia in local currencies, reducing their reliance on the U.S. dollar. The BRICS alliance offers these African nations a platform for financial and industrial growth, with China pledging to further support Africa's industrialization and agricultural development. Egypt sees BRICS as a way to amplify the voice of the Global South, focusing on trade and investment opportunities that reduce reliance on Western financial systems.
💡 The Vision for a BRICS Common Currency
Many BRICS leaders, including Brazil's president, dream of creating a common currency to reduce their reliance on the U.S. dollar, similar to the Euro in Europe. Although a BRICS currency backed by gold is a long-term goal, the short-term strategy focuses on reducing U.S. dollar dependency and avoiding U.S. sanctions. This shift would allow BRICS members to trade more freely, bolstering their economies. Additionally, despite the diverse cultures and political systems within BRICS, the alliance has fostered peace and dialogue, as evidenced by border talks between China and India, and renewed peace efforts between Egypt and Ethiopia.
🌍 BRICS: A Rising Alliance in a Divided World
The BRICS alliance, now set to include six new members, is emerging as a powerful force in global geopolitics, controlling significant supply chains of key resources like crude oil and raw minerals. While some critics argue the diversity of BRICS members may lead to internal challenges, the alliance represents the hopes of many countries in the Global South, who are now being heard and given opportunities to rise. BRICS symbolizes a new world order, where smaller nations can thrive outside the control of Western-dominated institutions, making it a formidable and growing global power.
💬 The Future of BRICS and Global Currency Dominance
As the BRICS countries continue to grow in influence, surpassing the G7 in terms of GDP growth, there are debates about the next milestones for the alliance. While some predict the creation of a new BRICS currency to challenge the U.S. dollar, others believe the focus will remain on strengthening trade in local currencies. The video concludes by encouraging viewers to engage in the discussion about BRICS’ future, whether it will launch a gold-backed currency, and what other major accomplishments are on the horizon for the alliance.
Mindmap
Keywords
💡BRICS
💡Multipolar world
💡China
💡U.S. dollar
💡Belt and Road Initiative
💡Saudi Arabia
💡BRICS expansion
💡Sanctions
💡Global South
💡BRICS currency
Highlights
BRICS expanded to include six new countries: Iran, Saudi Arabia, UAE, Argentina, Egypt, and Ethiopia in January 2024, making a total of 11 members.
The expanded BRICS network will represent almost half the world's population and produce a third of global GDP.
Iran and China made a $2.7 billion airport expansion deal, where Iran will pay using crude oil, bypassing the US dollar.
BRICS represents a challenge to the US-led world order by promoting trade in local currencies or commodities, rather than relying on the US dollar.
China secured major deals at the BRICS summit, including a nuclear power plant in Saudi Arabia and other strategic partnerships.
BRICS now controls 50% of global oil production with the addition of Iran, Saudi Arabia, and UAE, enabling the group to bypass US sanctions.
The UAE will be contributing new capital to BRICS-controlled development projects, particularly through its $1 trillion sovereign wealth fund.
Argentina, facing currency troubles, will benefit from trade agreements with BRICS members, particularly moving away from the US dollar.
BRICS members like Egypt and Ethiopia are joining to gain more financial independence from Western financial systems.
BRICS may aim to create a new global currency, potentially backed by gold, to further reduce reliance on the US dollar.
China has invested in over 150 countries via its Belt and Road Initiative, emphasizing infrastructure over military bases.
At the summit, China announced further investment in Africa, including industrialization efforts and training for 20,000 African students.
India and China have deescalated their border tensions through dialogue facilitated by BRICS cooperation.
Egypt and Ethiopia have resumed peace talks over a Blue Nile dam dispute after joining BRICS, reflecting the alliance’s focus on peaceful solutions.
BRICS surpassed the G7 in terms of GDP growth, showing its rising economic power and influence on the global stage.
Transcripts
China just scored a massive victory at
the 2023 break Summit and Western
leaders are quickly realizing the
unipolar world led by the United States
is long gone and the future is most
definitely a multi-polar world where
smaller countries around the globe want
two things number one their voices to be
heard and number two to be treated
fairly and equally two weeks ago leaders
from Brazil Russia India China and South
Africa met for the 15th annual brick
Summit to discuss plans on how this new
political Alliance will change the world
you might think that's an exaggeration
but changing the world and Breaking Free
from Western hegemony is the exact
mission of the brics alliance and as
you'll see in today's video they are
quickly making this dream a reality the
big news from this Summit is brics will
be expanding in January 2024 and
welcoming six new countries Iran Saudi
Arabia the UAE Argentina Egypt and
Ethiopia the expanded bricks network
will comprise of 11 countries and have
almost half the world's population and
produce a third of the world's GDP the
expansion is historic reflecting the
resolution of the bricks countries to
unite and cooperate with other
developing countries meeting the
expectation of the International
Community and serves the common interest
of emerging markets and developing
countries China is the big winner from
this bricks Summit as it has secured
massive deals with both Saudi Arabia and
Iran the Kingdom of Saudi Arabia has
officially commissioned a nuclear power
plant to be built by the ch Chinese and
Iran has awarded a $2.7 billion airport
Expansion Project to China but pay
attention as I'm going to reveal the
true meaning of bricks right here Iran
will pay for the entire project in crude
oil completely bypassing the use of the
United States dollar for this
transaction this is exactly what the
brics alliance represents countries
trading and making deals using their
local currencies or in this case their
valuable Commodities this is the simple
reason why the ever expanding bricks
Network Remains the biggest BG challenge
to the United States LED World Order
China's president Xi Jinping even took a
direct shot at the US government's
Global actions here is the exact quote
from a speech at the bricks Summit but
some country obsessed with maintaining
its hegemony has gone out of its way to
the emerging markets and
developing countries whoever is
developing fast becomes its Target of
containment whoever is catching up
becomes its Target of obstruction but
this is feudal as I have said more than
once blowing out others lamps will not
bring light to oneself it's quite the
statement from the Chinese president who
was using an ancient Chinese proverb to
help people understand the reality of
what is happening around the world the
United States and its Western allies
have largely ignored the needs and
concerns of smaller developing countries
for far too long it's exactly why in the
past decade over 150 countries around
the globe have signed up to participate
in China's Bel and Road initiative while
the United States government spends its
money maintaining over 800 military
bases around the world China has been
investing in life-changing
infrastructure projects for countries
around the globe it's exactly for this
reason why at this year's Summit over 40
countries express interest in joining
the brics alliance however entry in the
alliance is limited only six new
countries were accepted so let's break
down each new member and share what they
bring to the table number one Saudi
Arabia arguably the most important new
addition to the alliance is Saudi Arabia
a key trading partner of the United
States for over half a century the
Saudis certainly aren't going to stop
trading with the Americans anytime soon
but it's becoming increasingly clear
they are very interested in building
closer relations with China and the
bricks Community Saudi Arabia's Ministry
of Education just instructed all public
and private secondary schools in the
Kingdom to implement Mandarin language
classes it seems like the kingdom is
getting ready for a lot more business
deals with China as they also just
announced a $3.6 billion deal to buy 10%
of China's Rong xang petrochemical which
will result in the Saudi Supply in the
Chinese company an additional 4 480,000
barrels per day of crude oil number two
is the United Arab Emirates similar to
the Saudis the UAE is also a top oil
producer in the region and already has
close ties with China the UAE is a
natural fit for the alliance as it
manages over $1 trillion in its
Sovereign wealth fund the UAE will be
pouring New Capital into the bricks
controlled new development bank and
funding various projects throughout the
brics alliance for the UAE joining brics
represents diversification as the
country already has close ties with
Western countries and now can focus on
building new relationships in the global
South number three is Iran with Saudi
Arabia the UAE and Iran joining bricks
the organization Now controls 50% of
global oil production and with this
amount of control and power bricks can
now completely bypass the US dollar and
trade commodities for infrastructure
projects exactly like Iran and China are
doing in their new airport Expansion
Project or they could use local
currencies instead this is a major
benefit for Iran who is actively
sanctioned by the United States and
restricted from using the US dollar
bricks has given Iran a new lifeline and
more ways to survive us sanctions
Argentina is number four and joins its
neighbor and original bricks member
Brazil in the new alliance Argentina's
currency has been in trouble for years
and to reduce the trade risk associated
with the dollar all exports from Brazil
will now be conducted with the Chinese
un which is once again another massive
victory for China while Argentina
doesn't bring the Deep Financial Pockets
the UAE does it contributes in other
ways most importantly minerals and raw
materials that will be valuable to the
brics group in the future and finally
Egypt and Ethiopia will follow in the
footsteps of South Africa and become the
second and third African nations to join
the brics alliance 50 of the 54 African
countries are already participants in
China's BR so it makes sense that more
African nations will follow and join an
alliance with China China has given
smaller African countries a voice and a
future in this new multi-polar world
through China's belt and Road
Investments even during the summit China
announced new measures to further help
the African continent China will be
allocating more resources for Africa's
industrialization and agricultural
production as well as training 20,000
African students in vocational schools
but to be honest Egypt and Ethiopia are
joining the brics alliance primarily to
break away from the control of Western
dominated Financial systems the strength
of the US dollar and high us interest
rates has increased the cost of Egypt
and Ethiopia's Imports and both
countries have already agreed that it
will pay for imports from China India
and Russia in their respective local
currencies the Egyptian president said
his country joining bricks will help
raise the voice of the global South
while Egypt's Finance Minister said he
will focus on investment and Export
opportunities that involve local
currencies one of the continuous themes
you've probably notice with almost every
bricks member is a strong desire to move
away from Trading exclusively in US
dollar
in fact Brazil's president Lula dilva
stated this before the brick Summit I
dream of having a common currency for
our countries to use in transactions so
that we could be independent from the US
dollar I dream of bricks having its own
currency like the European unions Euro
many countries throughout the global
South are rooting for a new brics
currency potentially even one that is
backed by gold to challenge the role of
the US dollar in global trade or one day
even take over the US dollar as the
world's foreign currency Reserve I mean
even Saudi Arabia is reducing its us
treasury bond Holdings as its Holdings
fall to the lowest level since December
2016 but to be completely honest I think
we are many years away from this type of
breakthrough while it will certainly
remain a strategic long-term goal the
short-term goal will be reducing
dependence on the US dollar reducing the
risk of being sanctioned by the US
government and increasing trade and
other currencies but there is another
hidden value of the brics alliance that
is going to make the world a much better
place although the 11 bricks countries
have different language languages
cultures religions and values bricks
members are joining together through a
common Bond and Paving a pathway for
better dialogue and peace let me give
you two examples over the past few years
India and China have been engaged in an
intense dispute over their respective
land borders but when President XI and
Prime Minister Modi met in South Africa
the two leaders of the world's most
populated Nations agreed to deescalate
their border tensions the situation on
the India and China border is extremely
complex as the two Nations share a 3,400
km border but this is what happens when
world leaders meet and dialogue is
encouraged solutions to complex problems
can be found another great example is
Egypt and Ethiopia putting their
differences aside and solving their own
territorial disputes over a Dam built on
the Blue Nile River both Nations have
been in a stalemate for 2 years with
both sides refusing to engage in
dialogue but following Egypt and
Ethiopia's invitations to Bricks the
countries have now resumed peace talks
as South African president Cyro REM mosa
said brics has embarked on a new chapter
in its effort to build a world that is
fair the world that is just a world that
is also inclusive and prosperous
everyone we've learned a lot from the
2023 break Summit with the most
important lesson being the future of our
world will be more divided the six new
countries that will join brics next
January controls the supply chains of
some of the world's most valuable
resources like crude oil and raw Earth
minerals while Western critics will
argue the bricks members are too diverse
and too different to actually work
together and get along we should never
forget the will of the entire Global
South countries in South America Africa
the Middle East and parts of Southeast
Asia for the first time in many many
decades are finally having their voices
heard and finally being given equal
opportunities to have a chance to rise
and prosper this is what the brics
alliance represents and it's why I still
remain bullish on its long-term
possibilities everyone thank you for
making it to this point in the video and
now it's time to let me know what you
think in the comments down below do you
think bricks will develop their own
currency next do you think their new
currency has the potential to be backed
by gold bricks already has surpassed the
G7 in terms of GDP growth what Milestone
do you think the alliance will
accomplish next as always thank you all
for your amazing support and I look
forward to seeing you all in our next
video soon
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