China and Russia have taken significant steps to strengthen their economic and financial ties, further solidifying their cooperation within the BRICS framework. Following a crucial meeting between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin, both nations reaffirmed their commitment to enhancing the use of local currencies in trade, developing robust payment infrastructures, and deepening mutual investments.
Strengthening Currency Cooperation within BRICS
The Chinese Ministry of Foreign Affairs released a Joint Communiqué from the 29th Regular Meeting of the Chinese and Russian Prime Ministers, held in Moscow. The document, signed by Li Qiang and Mishustin, emphasized the importance of bolstering financial cooperation within BRICS. The communiqué revealed that both nations agreed to maintain the high level of local currency settlement in bilateral trade, investment, credit, and other economic activities.
In line with this, China and Russia have pledged to develop their payment and settlement infrastructures. This includes opening correspondent accounts and establishing bank branches in each other’s countries, further facilitating the use of local currencies. This move is seen as a critical step toward reducing reliance on the US dollar in international trade, aligning with broader BRICS objectives.
Advancing BRICS Collaboration in Key Areas
Beyond financial cooperation, the two prime ministers underscored the importance of deepening collaboration within BRICS across various sectors. China and Russia emphasized their shared commitment to advancing sustainable development, artificial intelligence, and global governance under the BRICS umbrella. Russia’s support for China’s establishment of the “China-BRICS Artificial Intelligence Development and Cooperation Center” is a testament to the growing focus on AI within the BRICS agenda.
Moreover, the communiqué highlighted the strategic importance of BRICS in global economic governance, particularly in areas like trade, digitalization, and environmental protection. Both nations expressed their opposition to the politicization of economic and trade issues, advocating for fair and non-discriminatory trade practices within the BRICS framework.
Expanding BRICS Influence on the Global Stage
China and Russia’s deepening cooperation within BRICS also includes plans to expand the group’s influence on the global stage. The communiqué outlined their commitment to promoting the BRICS agenda by actively participating in BRICS summits and supporting initiatives like the BRICS New Industrial Revolution Partnership. This partnership aims to drive innovation and industrial development among BRICS nations, reinforcing their position in the global economy.
In addition, the move towards increasing the use of local currencies and the development of payment infrastructures is seen as part of a broader strategy to challenge the dominance of the US dollar. This effort aligns with the recent developments in BRICS, where nations are pushing for alternatives to the dollar in international trade. For instance, BRICS recently introduced a new gold-backed currency to gain steam and challenge the US dollar, highlighting the bloc’s commitment to reshaping global financial systems.
China and Russia’s joint efforts in these areas also resonate with BRICS’ broader strategy to launch initiatives like the BRICS Pay system, which aims to strike a major blow against the dollar by offering an alternative payment platform for member countries. These developments underscore the ongoing shift towards a multipolar world where BRICS nations are playing a pivotal role in redefining economic and financial norms.
Conclusion
The recent meeting between China and Russia marks a significant milestone in their bilateral relations and BRICS cooperation. By deepening their collaboration in currency use, financial infrastructure, and key technological sectors, both nations are positioning themselves as leaders in the global push for a more equitable and diversified economic order. As BRICS continues to expand its influence, the implications for global trade and finance are profound, potentially reshaping the future of international economic relations.
