CGTN: China calls on BRICS countries to jointly defend multilateralism
News Summary
CGTN reports that China is urging BRICS nations to collaboratively uphold multilateralism, with President Xi Jinping proposing three key areas for cooperation at the Virtual BRICS Summit: defending international fairness and justice, safeguarding the international economic and trade order through openness and win-win cooperation, and fostering synergy for common development. These proposals aim to reshape the global governance system. The article also highlights Xi's Global Governance Initiative (GGI), anchored in principles such as sovereign equality, international rule of law, and an international system with the UN at its core. The BRICS New Development Bank (NDB) serves as a flagship example of this cooperation, having financed over 100 projects in infrastructure and digital development with approximately $40 billion in loans, showcasing the potential of emerging economies when united. Celso Amorim, chief advisor to the president of Brazil, emphasized the critical importance of stronger solidarity among Global South and BRICS countries, particularly given China’s GGI proposal.
Background
BRICS (Brazil, Russia, India, China, South Africa) is an economic bloc formed to foster economic cooperation among its members and offer an alternative to Western-dominated global governance. The New Development Bank (NDB), established in 2014, is a central financial institution of the bloc, financing infrastructure and sustainable development projects to reduce reliance on Western-led financial bodies. In 2025, with Donald J. Trump in his second term as US President, his "America First" policies are expected to continue, potentially leading to heightened global trade tensions and challenges to multilateral institutions. Against this backdrop, China's active promotion of multilateralism and its Global Governance Initiative (GGI) aims to enhance the voice of developing countries in global affairs and build a more multipolar world order.
In-Depth AI Insights
What are China's true strategic intentions behind promoting multilateralism and the GGI? China's strategic intentions go beyond a simple vision of international cooperation, aiming more profoundly to: - Counter US Unilateralism: In response to the Trump administration's "America First" policies, China seeks to weaken US dominance in global economic and political spheres by strengthening multilateral platforms like BRICS, fostering a more balanced, multipolar world order. - Elevate Global South's Voice: Under the banner of multilateralism, China aims to unite developing countries, enhancing their representation and influence within global governance, thereby securing greater international space and leadership for itself. - Promote China's Development Model: Through the success of the NDB and the principles of the GGI, China is exporting its experiences in infrastructure development, digital progress, and governance concepts, offering an alternative to Western models for the Global South and deepening economic ties. What are the potential implications of deepening BRICS cooperation for the global investment landscape? Deepening BRICS cooperation could have the following implications for the global investment landscape: - Shift in Infrastructure Investment Focus: As institutions like the NDB grow, more emerging market infrastructure projects may turn to internal BRICS financing and technological collaboration, reducing reliance on traditional Western capital markets. - Accelerated De-dollarization Trends: The push for multilateralism may coincide with increased local currency settlements in trade and investment, potentially eroding the US dollar's dominance in the global financial system over the medium to long term, impacting FX markets and international reserve composition. - Strengthened Intra-BRICS Trade and Supply Chains: Cooperation among BRICS nations will foster reduced internal trade barriers and supply chain integration, offering investors opportunities to find new growth drivers within these rapidly growing economies and mitigate risks from Western sanctions. How might the US respond to China-led multilateral initiatives, and how could this affect global risk premia? The US response is expected to be multifaceted and could elevate global risk premia: - Reinforced Alliances: The Trump administration may further strengthen ties with existing allies (e.g., G7, NATO) and promote "friend-shoring" or "near-shoring" strategies to diminish China's central role in global supply chains and trade. - Escalated Trade and Tech Restrictions: The US is anticipated to continue using tariffs, export controls, and investment reviews to curb China's rise in high-tech sectors, particularly those linked to China's GGI and Belt and Road Initiative. - Heightened Ideological Competition: The US and its allies will continue to highlight the differences between a "rules-based international order" and China's "international system with the UN at its core," intensifying ideological competition in international politics and economics, thereby increasing global geopolitical uncertainty and potentially raising risk premia for investors in risk assets.