China and the BRICS alliance are moving to dominate global trade by ending reliance on the U.S. dollar. In the last two decades, China’s trading partners rose from a low of 25 to a high of 120 countries. Since 2020, China’s largest trading partners are Japan, South Korea, Vietnam, Pakistan, and Taiwan. The proximity of borders makes trading easy and settles transactions in a shorter period. Apart from Asian countries, China’s leading partners in trade in Europe are Russia and Ukraine.
In addition, China’s presence in trade has also moved to Africa in places like Kenya and South Africa. China’s presence in trade is also dominating the Latin American markets in countries like Brazil. In addition, China is moving into the Middle East for trade and tapping into Saudi Arabia and the United Arab Emirates. The oil-rich Middle Eastern countries could give the Chinese economy a significant boost through cross-border transactions.
Below is the chart on how the BRICS member China is sideling the U.S. in dominating global trade.
BRICS member China is slowly yet steadily capturing Asian, Latin American, Middle East, Europe, and Australian markets. In the last two decades, China’s manufacturing power rose tremendously making several countries around the world depend on its products.
BRICS: China’s Dominance On Global Trade
Chinese President Xi Jinping is moving rapidly to eliminate the U.S. dollar’s dominance on the global scale. Jinping partnered with Russia’s Putin to challenge the dollar’s supremacy as the world’s reserve currency. Russia is looking to bypass the U.S. sanctions for invading Ukraine by convincing other countries to join BRICS and accept the new currency.
A recent report highlighted that Putin is convincing oil-rich Saudi Arabia to join BRICS and accept the currency for trade. If Saudi Arabia accepts BRICS currency for oil exports, a handful of countries, including European nations could be forced to settle trade with BRICS currency. This might reduce the U.S. dollar’s power and send it on a path of decline as the currency will lose demand.
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The decision to launch the BRICS currency will be jointly taken in the next summit in South Africa in August.