Brazil tops BRICS group during escalating US-China frictions

Brazil tops BRICS group during escalating US-China frictions

The BRICS nations are gearing up for their annual summit in Rio de Janeiro, Brazil, this July, amidst a backdrop of expansion, geopolitical tensions, and strategic initiatives.

The group, initially comprising Brazil, Russia, India, China, and South Africa, has significantly expanded, with Indonesia joining in 2025. Egypt, Ethiopia, Iran, and the United Arab Emirates are expected to join in 2024, bringing the total membership to 11 countries. Despite geopolitical tensions, notably the absence of key leaders like Putin and Xi at the 2025 summit, the group has continued to strengthen its cooperation and coordination.

A key focus for BRICS is dedollarization, with plans to develop a cross-border payment system to reduce reliance on the U.S. dollar and mitigate the impact of unilateral sanctions. The group has also introduced a new framework for joint action on climate change, signalling a coordinated approach ahead of COP30 in Brazil. BRICS advocates for more inclusive discussions on AI governance, reflecting concerns about underrepresentation in global forums.

BRICS is pushing for reforms in multilateral institutions, seeking permanent UN Security Council seats for Brazil and India, and readjusted voting power in the IMF and World Bank. India will assume the BRICS chair in 2026, potentially shifting the bloc's priorities based on New Delhi's interests.

Internal tensions regarding energy policies and geopolitical dynamics will continue to shape the trajectory of BRICS. There is an ongoing contest within BRICS between fossil fuel-based economies (like Russia and Iran) and those transitioning towards renewables (such as China, Brazil, and India). China is leading through significant investments in clean energy technologies, exporting green products and technologies to other BRICS nations.

The development of alternative financial systems and payment networks aims to reduce dependence on Western-controlled financial infrastructures like SWIFT. BRICS is fostering deeper economic integration among its members, with a focus on strategic areas such as health, finance, and AI.

Brazil, as the host nation, must navigate heightened tensions and conflicts stemming from the aggressive tariff policies of US President Donald Trump. The Trump administration has threatened 100% tariffs on the BRICS nations if they create an alternative currency. However, Brazil's Finance Ministry denies active discussions on a common BRICS currency or a coordinated "de-dollarisation" strategy.

The BRICS summit is likely to be dominated by discussions on global tariffs due to the US policies. More than 30 other countries have expressed interest in joining the BRICS group, and the expansion has been driven by China's growing power, but Brazil was not prepared for the rapid and unclear expansion process.

As the BRICS nations move forward, they aim to establish a unified approach to financing climate action and plan to launch the Tropical Forest Forever Facility (TFFF) at COP30. The US has withdrawn from the Paris Agreement on climate change, and sustainability is expected to play a role at the BRICS summit.

Despite the challenges, the BRICS nations are evolving to play a more significant role in global governance, climate action, and economic policy, particularly through its expansion and strategic initiatives in finance and technology.

1. The BRICS nations, with Indonesia joining in 2025 and Egypt, Ethiopia, Iran, and the United Arab Emirates expected to join in 2024, are expanding their membership to 11 countries.
2. The group has introduced a new framework for joint action on climate change, signaling a coordinated approach ahead of COP30 in Brazil.
3. BRICS advocates for more inclusive discussions on AI governance, reflecting concerns about underrepresentation in global forums.
4. India will assume the BRICS chair in 2026, potentially shifting the bloc's priorities based on New Delhi's interests.
5. China is leading through significant investments in clean energy technologies, exporting green products and technologies to other BRICS nations.
6. The development of alternative financial systems and payment networks aims to reduce dependence on Western-controlled financial infrastructures like SWIFT.
7. As the BRICS nations move forward, they aim to establish a unified approach to financing climate action and plan to launch the Tropical Forest Forever Facility (TFFF) at COP30, with sustainability expected to play a role at the BRICS summit.

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