By: Dr Mkhuseli Vimba
The United States business sector and the President Joe Biden administration seem to have a better understanding of the effects of BRICS in economic terms.
There is clear recognition by the US that China is the economic powerhouse, which poses a potential threat to the US dominance of global affairs.
The growth of BRICS as an economic bloc is not good news for the US’s economic interests. This is especially the case when oil producing countries like Saudi Arabia wish to join BRICS.
The request by France to be invited to the BRICS meeting is another sign of panic in the Western world about the growth of BRICS. Unprecedented visits by Biden Administration ministers is an indication that America recognises China as a powerhouse.
China, on the other hand, opens up for bilateral relations whether that is genuine or not is yet to be clarified, especially with continuing recognition of Taiwan by the US and at the same time arguing that it remains to one China policy. China should be taking a strong stance on the Taiwan issue.
US Business tycoons such as Bill Gates and Elon Musk have also shown great interest in doing business or investing in China. This is done in the national interests of the US.
The Chinese President Jinping has indicated that he will roll out the red carpet for them. John Kerry, US Special envoy is in China to revive bilateral relations and focus on bilateral ties and working together on global warming matters or climate change.
The US seems to push for a level of trust against perceived US hostilities in relation to Taiwan and double standards as well as China’s green energy transition.
China’s continued economic growth by 5.5% in the first quarter of this year attracts many countries and the US cannot ignore this either.
The question is how the US-China relations and revived positive bilateral relations are going to affect BRICS. US policy changes in investing in China against the backdrop of de-dollarisation and establishment of a new BRICS currency.
Both US ministers of the Biden administration have stressed that both superpowers have the capacity to iron out areas of disagreement including trade sanctions that were implemented during the Trump and Biden administration.
With reports that India is accusing China of forcing its currency to BRICS and India’s commitment to focus on growing its currency and economy and this after the Indian Prime Minister visited the US recently to revive bilateral ties.
One observer concludes that BRICS is being weakened by the US behind closed doors as is currently setting the cat among the pigeons.
With US world dominance threatened by BRICS and with China, India, Russia, Turkey, Iran, Indonesia, Saudi Arabia, Brazil, becoming regional powers within a loosely coupled global system the US is restless and will stop at nothing in its attempt to destabilise BRICS and in ensuring that it has influence over China and India.
In order to stop this, it will require a concerted effort on BRICS nations to be united and have a common understanding on policy and trade issues. In this regard, we cannot rule out efforts by the US through its economic intelligence to further weaken BRICS.
The influence of the US in NATO decision making, considering the Ukraine-Russia war was the first attempt by the US to weaken BRICS and a rigorous effort to have strong bilateral relations with China and India which are biggest economies in BRICS is aimed at ensuring that de-dollarisation attempts fail.
In this regard a stronger BRICS Development Bank is crucial so as to significantly reduce member country reliance on IMF. As many countries are likely to join or have applied to join BRICS, disharmony will destroy everything and BRICS will collapse.
Now the US is talking about reviving or saving 40 years of tremendous relations with China and 40 years of mutual understanding between the two countries based on mutual respect.
This is despite the very same US Administration criticising China for its terrible human rights record and vowing not to reward a country with a bad human rights record like China and supporting Taiwan against the One China policy.
The same US is forging ties and creating military bases around the world in preparation for wars. This begs a question whether BRICS will establish its military wing to protect its interest in member states or not.
For balance of powers, equilibrium and protection of economic interests, this may be a way to go for BRICS. In essence, BRICS being an economic bloc, it should also consider the military alliance of all its member states along the lines of NATO.
Every nation state pursues its national interest and this at times involves forsaking values and principles in favour of pragmatism.