The BRICS Cooperation Enters the“Year of China”

By Audrey Guo

Nowadays， the COVID–19 pandemic and global changes， the likes of which have both been unseen over the last century， are having a major impact on the world， resulting in weak and fragile global economic recovery， and extending development gaps， as well as various severe challenges including climate change and digital governance. This raises the question of how BRICS countries play the roles of the “stabilizator” and“accelerator” to contribute to global market stability and stimulate international development cooperation. With high expectations from the rest of the world， five years later in 2022， the BRICS Business Forum was held in China again.

“The BRICS mechanism is an important cooperation platform for emerging markets and developing countries. BRICS cooperation has now entered a new stage of high–quality development. I hope that entrepreneurs will continue to act with tenacity and in a pioneering spirit， and champion open， innovative， and shared development， so as to add new impetus to BRICS cooperation， and make more benefits of development reachable to everyone in a more equitable way，” said Chinese President Xi Jinping in his video message entitled “Keeping Abreast of the Trends of the Times to Shape a Bright Future” which was screened at the opening ceremony of the BRICS Business Forum on June 22nd， 2022.

Addressing the questions of the times

In his keynotes speech， President Xi Jinping impressively answered the biggest question of the times， that is，“where is the world going？ ”， strengthening the confidence of countries facing a turbulent world， and triggering warm responses from the guests in attendance. They agreed that the speech was profound and inspiring， as it guided the direction for deepening BRICS pragmatic cooperation， indicated the path for maintaining world security and stability， drew up a blueprint for promoting global open development， enhanced the confidence in Chinas economy and development prospects， and clarified the way for enterprises to participate in supporting BRICS cooperation.

As Xi Jinping stressed， human history， like a river， keeps surging forward， with moments of both calm waters and huge waves. Despite changes in the evolving global environment， the historical trend of openness and development will not reverse course， and neither should the shared wish to meet challenges together through cooperation. The BRICS should stand tall and not be distracted by fleeting clouds， should have a keen appreciation of the laws governing the advancement of history， should refuse to be led astray by any turn of events or intimidated by any risk， should rise to the challenge and forge ahead with resolve intact to move toward the goal of building a community with a shared future for all of mankind.

First， The BRICS should embrace solidarity and coordination to jointly maintain world peace and stability. Painful moments in history have proven that hegemony， group politics and bloc confrontation bring no peace or security， only leading to wars and conflicts， while blind faith in the so-called “position of strength” and attempts to expand military alliances and seek ones own security at the expense of others will only cause security dilemmas. It is only when everyone cherishes and upholds peace and never forgets the painful lessons of war that there can there be hope of peace. The whole world should stay true to the pledge of the UN Charter and fulfill the mission of maintaining peace.

Secondly， The BRICS should reach out to each other and jointly promote sustainable global development. Specifically， The BRICS should deepen cooperation to better safeguard food and energy security， seize opportunities presented by the new scientific and technological revolution and industrial transformation to promote the flow of factors of production that enable innovation globally， and help developing countries speed up development of the digital economy and green transformation， while also engaging in cooperation on COVID–19 responses and providing more anti–COVID medicines for developing countries so as to beat the virus at an early date. The BRICS should respond to peoples concerns， pursue the larger interests of all countries， and steer global development into a new era to deliver benefits for all.

Third， The BRICS should tide over difficulties together and jointly pursue win-win cooperation， and should join hands with a united purpose and strengthen macroeconomic policy coordination， in order to prevent the slowdown and even halting of the global recovery. Major developed countries should adopt responsible economic policies and avoid negative policy spillovers that may take a heavy toll on developing countries. It has been proven time and again that sanctions are a boomerang and a double–edged sword. The act of politicizing the global economy and turning it into ones tool or weapon， and willfully imposing sanctions by using ones primary position in the international financial and monetary systems will only end up hurting ones own interests as well as that of others， and will cause suffering on everyone.

Fourth， The BRICS should be inclusive and jointly expand openness and integration. Inclusiveness， shared benefits and win-win outcomes is what all countries and regions should pursue， since it can help eliminate all barriers to the development of productivity， and steer globalization in the right direction， which can then boost the free flow of capital and technology， unleash the full potential of innovation and creativity， and foster synergy in boosting global economic growth. BRICS should uphold the WTO-centered multilateral trading system， remove barriers to trade， investment and technology， and keep the global economy open. Besides this， BRICS should also promote extensive consultations and joint contributions to deliver shared benefits， enhance global economic governance， and increase the representation and say of emerging markets and developing countries.

Xi also stressed that China will ground its efforts in the new development stage， follow the new development philosophy， foster a new development paradigm and strive to achieve high-quality development. China will continue to pursue opening-up against higher standards， develop new systems for a higher-standard open economy， and continue to foster a market- and law-based and internationalized business environment. China will warmly welcome all countries and regions to invest in and do business with China， strengthen business cooperation with China， and share in Chinas development opportunities.

Deepening pragmatic cooperation among BRICS countries

The leaders of BRICS countries each delivered video messages at the opening ceremony for the BRICS Business Forum， pointing the way for the business community in the five BRICS countries to develop broader partner relations， deepen their pragmatic cooperation in various fields， and promote the recovery and growth of the world economy.

In his video message， South African President Ramaphosa highly praised the BRICS Business Council for their efforts in deepening cooperation among BRICS business communities. Despite the impact of the pandemic， trade and investment cooperation among BRICS countries has been progressing steadily. He called on the BRICS countries to support the African Union by ensuring the procurement of African-made vaccines for African countries， and the BRICS initiative on strengthening supply chain cooperation. At the same time， he also proposed for BRICS countries to oppose attempts to influence global economic policy through unilateral sanctions and other coercive measures.

In his video message， Brazilian President Bossonaro noted that “the current international situation is worrisome， as there is a higher risk for international trade and investment and instability in energy and food supply chains. In the face of these challenges， we are not to close the doors， but to seek out deeper economic integration. We are proud to uphold the common spirit of cooperation with our BRICS partners”.

In his video message， Russian President Vladimir Putin said the BRICS Business Forum has played a great role， not only among BRICS countries， but also across the world， in promoting mutual trade and investment， strengthening cooperative ties and enhancing direct dialog among business communities. He said that Russia would take comprehensive measures aimed at mitigating the negative effects of sanctions and strengthening trade and investment relations with all countries and regions involved. Furthermore， President Putin believes that the BRICS Business Forum would continue to focus on expanding trade， business， investment and production ties among BRICS countries.

In his video message， Indian Prime Minister Narendra Modi highlighted the fact that BRICS was founded on the belief that these emerging economies could develop into engines of global economic development. As the whole world is focused on recovery from the pandemic now， the role of BRICS will once again become very important. He said that India is currently making significant efforts to improve their domestic business environment and to reduce the compliance burden on businesses， creating investment opportunities of USD 150 million to complete infrastructure， and boosting the digital transformation by encouraging womens participation in the digital economy.

The forum was an unprecedented event， with numerous participants attending from the BRICS business community and receiving attention from the business communities of other countries. In addition to BRICS countries， representatives from Kazakhstan， Argentina， Thailand， Indonesia and others countries also attended the forum. Most participating enterprises are world-renowned and pillar enterprises in BRICS countries， including 40 of the worlds top 500 enterprises. All these facts fully demonstrated the vitality and attractiveness of BRICS economic and trade cooperation， as well as the confidence of the international business community in Chinas economic development prospects and their strong desire to further strengthen cooperation with China.

Rallying the business communities to uphold multilateral trade

As emerging markets and large developing countries， BRICS countries are part of an important engine for global economic growth. The participants believe that all parties involved should actively practice multilateralism， support the multilateral trading system with WTO as the core， guide the direction of economic globalization， and promote the global economy to recover from the current crisis.

In recent years， BRICS economic and trade cooperation has achieved fruitful results， becoming a stimulus for further BRICS cooperation. In 2021， the volume of bilateral trade between China and BRICS countries totaled USD 490.42 billion， marking an increase of 39.2% from a year ago， and double that （USD 241.7 billion） of 2016. Specifically， the value of China-Pakistan trade totaled approximately USD 164.06 billion， setting a new record； the value of China-Russia trade was USD 146.89 billion USD， up 35.8% year-on-year； the value of China-India trade exceeded USD 100 billion for the first time， reaching USD 125.66 billion； and the value of China–South Africa trade grew by 50.7% year-on-year. Economic and trade co- operation among BRICS countries has become an important driving force for global economic recovery.

Wang Shouwen， Vice Minister of Commerce and Deputy Representative of China International Trade， said that BRICS countries are members of the G20 （Group of Twenty） and other multilateral mechanisms， and members of the multilateral trading system contributed more than 98% of the total global trade volume. As key links in the global industrial chain， the BRICS countries should work together to ensure a stable industrial chain， which is of great importance for global economic recovery.

Sanjiv Mehta， President of Federation of the Indian Chambers of Commerce and Industry， suggested that various industries could make specific contributions to global economic growth. For example， agriculture can be helpful to achieving low-carbon sustainable development and carbon-neutral commitments by combating climate change and promoting biodiversity， while the manufacturing industry needs to develop solutions to reduce carbon emissions in the supply chain， popularize clean fuels and reduce the use of plastics. In terms of infrastructure， various countries and regions can secure long-term sustainable and inclusive development by improving the interconnectivity of infrastructure and aging facilities in remote areas.

According to Chen Siqing， Chairman of ICBC （Industrial and Commercial Bank of China）， BRICS should fully make use of the BRICS Business Council platform to tap into the potential for cooperation and to seek more pragmatic results， so as to improve the quality of BRICS economic cooperation. At the same time， it is also necessary to actively expand the “BRICS+” business cooperation， in order to promote the deep integration of scientific and technological innovation and green development， contributing to the green and low-carbon economic transformation of various countries and regions.

Sergei Katyrin， Chairman of the Chamber of Commerce and Industry of the Russian Federation， pointed out that there is great potential for practical cooperation among BRICS countries， and he hoped that BRICS countries can tap into this potential to achieve their own socio-economic development， while supporting global development. He noted that despite there being tough challenges in the first a few months of this year， Russias foreign trade grew at a relatively high rate. It was reported that in the first quarter of 2022， the trade volume between the Russian Federation and other BRICS countries grew by 38%， to USD 45 billion. At the same time， Russia increased its share in the foreign trade of other BRICS countries.

Expanding Green Cooperation and Embracing the Digital Economy

Facing the severe challenges presented by environmental risks to global sustainable development， the attendees of the BRICS Business Forum discussed the opportunities for cooperation in fields such as the green transition， new sustainable business models， addressing institutional， policy and standard issues affecting the green transition， strengthening trade and investment cooperation， science and technology innovation， green and low-carbon development， and so on.

Of BRICS cooperation， South African Trade， Industry and Competition Minister Ebrahim Patel said that， as a gateway to the African market， South Africa invites other BRICS countries to invest in and build factories in South Africa， so as to jointly carry out cooperation and development projects in the fields of hydropower， green hydrogen energy， components， iron and steel， cement， wind energy， solar energy， etc.

Dai Houliang， Chairman of the China National Petroleum Corporation， stated that， under the framework of the BRICS Business Council， China will deepen the practical cooperation among energy enterprises in China and the other four BRICS countries in the fields of new energy and low-carbon technology. He proposed that BRICS countries should give full play to the principle role of enterprises， build an information sharing platform， strengthen financial support， and improve technological synergy and innovation.

Xin Baoan， Chairman of the State Grid Corporation of China， proposed further improvements in the communication and cooperation between peer industries and countries， especially the practical cooperation among BRICS countries in various aspects such as green technology， green equipment and green services， so as to make green cooperation a distinct feature of the energy transformation in BRICS countries.

Due to the impact of the COVID–19 pandemic， industrial transformation featuring digitalization and intelligence has developed rapidly around the world， while BRICS countries have also demonstrated the re- silience and vitality of their economic and social development.

According to Alexei Gruzdev， Deputy Minister of Industry and Trade of the Russian Federation， Russia is carrying out a digital transformation strategy for its traditional manufacturing industry， and it is expected that by 2030， the smart intelligence program will help cut production downtime by 45%， reduce product maintenance costs by 40%， and increase the number of skilled technical employees in digital platforms by 30% and the application ratio of digital technology by 50%.

The Chinese government has attached great importance to the development of the digital economy in recent years， and has already gained many achievements. According to Liang Baojun， Deputy General Manager of China Unicom， China has constructed the worlds largest-scale and most advanced digital infrastructure， including more than 1.6 million 5G base stations， and has also developed the worlds most promising digital service market with an annual transaction scale for mobile payments reaching RMB 527 trillion. Of particular note is the fact that the new economic forms have created more than 20 million jobs.

Regarding the development of the digital transformation in BRICS， Wen Jia， President of public affairs of Alibaba Group， said that all five BRICS countries have the foundation for digital transformation. Digital sharing and collaboration can facilitate the trading and circulation of bulk commodities and raw materials among BRICS countries and reduce costs， facilitating the establishment of a new supply chain system for industrial supply in BRICS countries with accurate matching and sharing across industries and borders. She also believes that digitalization will be the key to developing partnerships among BRICS countries for a new industrial revolution.

Broaden health cooperation against the current pandemic and improve supply chain resilience

As the current global pandemic continuously poses challenges across the world， the attendees believed that in the face of this recurring problem， the business communities in BRICS countries should gather their greatest joint efforts to fight the pandemic.

According to Lu Yimin， General Manager of China General Technology （Group） Holding， the COVID–19 pandemic has spread like wildfire globally， targeting people regardless of race， faith and nationality. Global practices in fighting against the pandemic， especially those seen in the collaboration between BRICS countries， have proven that it is necessary for countries greatly impacted by the pandemic to jointly overcome the current difficulties through solidarity and collaboration.

Yin Ye， CEO of BGI Group， addressed the attendees via video conference， stating that since the outbreak of the pandemic， BGI Group has been on the frontline of fighting against the pandemic at home and abroad， and has provided assistance to the majority of developing countries， including self-developed nucleic acid testing products certified by the Brazilian National Health Surveillance Agency （ANVISA）， self-developed and made-in-China gene sequencers that supported gene sequencing services for the traceability and monitoring of COVID–19 mutated strains in South Africa and the first detected Omicron strain， and building “HuoYan” laboratories in Rio de Janeiro and Fortaleza commissioned by the Oswaldo Cruz Foundation of Brazil， which had a design testing capacity of 25，000 people per day， and has helped Brazil improve their testing capacity.

Also via video conference， Stavros Nicolau， Senior Executive Officer of South Africas Aspen Pharmaceutical Holdings， said that South Africa was working with Sinovac Biotech on vaccines to increase the vaccine production capacity of Brazilian companies through intensified cooperation with Chinese partners. There would be more opportunities to improve bilateral and multilateral cooperation under the BRICS mechanism in the future， turning discussions into pragmatic cooperation， promoting more deals and facilitating the implementation of investment opportunities.

The pandemic has severely disrupted both the flow of people and goods， shocking regional and global supply chains of the industrial chain. Meanwhile， protectionism and inward-looking tendencies are causing artificial disruptions to the normal functioning of the supply chains. Businesses are calling for a holistic approach to improve the development tenacity and resilience of supply chains in emerging economies and developing countries.

Indian Minister of State Commerce and Industry Anupriya Patel said that the pandemic has shown that not only are costs important， but trust is also a vital important factor for maintaining stable supply chains：“we have to go with the flow and upgrade traditional production processes， so as to achieve a higher production efficiency. BRICS countries need to learn and gain experience from each others industrial strategies， plans， policies and best practices， and promote BRICS countries to upgrade their industries to the top end of the value chain through continuous innovation， so as to better combat the COVID–19 pandemic and ensure economic recovery”.

Wan Min， Chairman of Chinas COSCO Shipping Group， said that now COSCO Shipping is also actively improving their supply chain service capabilities with digital technology. For example， in the field of blockchains， COSCO Shipping has participated in the blockchain platform GSBM， and has realized the paperless release of goods in many countries and regions in Asia and Europe， including Singapore， Thailand， the Netherlands and Hong Kong， China， greatly improving the efficiency of import and export trade during the pandemic. He believes that the supply chains among BRICS countries should focus on both security and efficiency， replacing the former model which only targeted. Besides this， the issue of supply chain resilience should attract due attentions from entrepreneurs in various sectors.