China Dominates the New, Extended BRICS: Is it a Yuan-Led Future?
The BRICS economic bloc is undergoing a significant transformation, and China's influence is becoming increasingly apparent. Recently, On, BRICS – the intergovernmental organisation comprising Brazil, Russia, India, China and South Africa – admitted four new members: Egypt, Ethiopia, Iran and the
other key economies, signaling a major expansion and shift in global power dynamics.
China's Growing Clout in BRICS
This expansion is not without its complexities. While the BRICS nations share a common desire to challenge the Western-dominated global financial order, opinions diverge on the extent of China's role. Critically, China is looking to make developing countries join BRICS and start using the Chinese Yuan for cross-border payments. Other members believe that China is using the bloc
to advance its own geopolitical and economic agenda.
The Push for Yuan Domination
China's ambition to promote the Yuan as an alternative to the US dollar is a central theme within the expanded BRICS. The prospect of using the Yuan for cross-border payments within the bloc could significantly reduce reliance on the dollar and enhance China's economic leverage. However, this proposal has met with resistance from some member states who are wary of becoming overly dependent on China.
Challenges and Opportunities
The inclusion of new members presents both opportunities and challenges for BRICS. While the expanded membership broadens the bloc's economic and political influence, it also introduces new complexities in terms of decision-making and aligning diverse national interests. Whether BRICS can successfully navigate these challenges and maintain its cohesion remains to be seen.
The Future of BRICS
The future of BRICS hinges on the ability of its member states to balance their individual interests with the collective goals of the bloc. China's dominance, while undeniable, needs to be tempered with a commitment to inclusivity and collaboration. The extended BRICS has the potential to reshape the global economic landscape, but only if it can overcome internal divisions and forge a common path forward. The rise of the Yuan, spurred by Chinese influence, will undoubtedly be a key factor determining the bloc's success.
The world watches as the new BRICS takes shape, keenly observing whether it will truly be a multi-polar power or a vehicle for Chinese economic dominance.