Venue for the BRICS coordinators and deputy coordinators meeting ahead of the 16th BRICS Summit, Kazan, Russia, October 21, 2024. /CFP
The 16th BRICS Summit will be held in Kazan, Russia, from October 22 to 24. Invited by Russian President Vladimir Putin, Chinese President Xi Jinping left Beijing on Tuesday to participate in this important gathering.
Experts anticipate that this summit, the first following BRICS expansion, will see Xi and other BRICS leaders outline a strategic vision for the organization. They aim to enhance cooperation among emerging economies and the Global South, while addressing pressing global challenges such as deglobalization, financial instability and climate change.
Over the past 18 years, China, as the largest economy in the BRICS group, has played a significant role in bridging development gaps among member states, amplifying the voices of the Global South, and promoting the reform of global political and economic governance.
Fostering economic collaboration
In 2014, the BRICS nations – Brazil, Russia, India, China, and South Africa – established the New Development Bank (NDB) to address the global infrastructure financing shortfall and strengthen the influence of BRICS countries in the international financial landscape.
Headquartered in Shanghai, the NDB focuses on funding infrastructure and sustainable development projects not only within BRICS nations but also in other emerging and developing countries. Through the NDB, China collaborates with other member states to invest in critical projects related to transportation, energy and water resources, effectively addressing the global infrastructure financing gap and stimulating regional economic growth.
Additionally, China's Belt and Road Initiative (BRI) complements the NDB's efforts by strengthening regional markets and facilitating trade and investment in developing nations. For example, the Durban Harbor modernization project, supported by the NDB, is also a Belt and Road cooperation project between China and South Africa. Upon completion, it will become one of the most important shipping hubs in the southern hemisphere.
Moreover, China has demonstrated its commitment to deepening mutually beneficial cooperation with BRICS partners. In the first quarter of this year, trade between China and BRICS countries reached 1.49 trillion yuan (about $209.7 billion), an increase of 11.3 percent year on year, according to customs authorities.
The New Development Bank, Shanghai, China, September 3, 2021. /CFP
Promoting global financial reform
China has also been instrumental in advocating for reforms in global economic governance. For decades, it has called for changes to international institutions such as the International Monetary Fund (IMF) to better reflect the quotas and voting power of emerging and developing countries.
Thanks to the concerted efforts of China and other BRICS nations, the IMF doubled its total quota in December 2010, reallocating over six percent to emerging and developing countries. This reform, which took effect in January 2016, elevated China, Brazil, India and Russia to the ranks of the top ten IMF shareholders.
Despite this progress, the BRICS countries remain underrepresented in international financial systems. Collectively, they account for over 40 percent of the world's population. In 2021, the five BRICS economies accounted for about a quarter of the world's gross domestic product and contributed more than half of global economic growth, according to the World Bank. Yet, their combined voting rights in the World Bank and IMF were less than 15 percent.
Pan Gongsheng, governor of the People's Bank of China (PBOC), recently called for further reforms of the IMF and the World Bank. He stressed at the Boao Forum in March this year that while the IMF has reviewed its quotas and decided to increase them proportionally for all members at the beginning of the year, the current quotas still do not accurately represent the positions of member countries in the global economy.
Enhancing the global governance system
China has taken a leading role in advocating for true multilateralism, enhancing the representation of Global South countries, and addressing global challenges through international cooperation. These efforts align with the interests of BRICS and other developing nations.
In 2017, at a summit in Xiamen City, southeast China's Fujian Province, President Xi proposed the "BRICS Plus" cooperation approach, opening the door for emerging market countries and developing nations to integrate into the BRICS cooperation mechanism. Earlier this year, the group welcomed Saudi Arabia, Egypt, the United Arab Emirates (UAE), Iran and Ethiopia as new members, with other countries, including Thailand and Malaysia, expressing interest or applying to join BRICS.
"China's contribution to the ongoing development of BRICS is significant," noted Zukiswa Roboji, a researcher at Walter Sisulu University in South Africa. He remarked that the BRICS mechanism fosters solidarity and cooperation among Global South countries, enhancing their representation in global governance. Roboji emphasized that China's efforts have positively impacted BRICS' global influence.
Bunn Nagara, director and senior fellow at the Belt and Road Initiative Caucus for Asia-Pacific, added that the genuine multilateralism advocated by China and its efforts in promoting the modernization of the Global South have brought confidence and significant strength to the world.
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