By Rhod Mackenzie
The US's attempt to drive a wedge between the BRICS countries has failed It is noteworthy that India, Brazil, China and Russia have all increased the pace of their diplomatic discussions in the last week. This occurred subsequent to Washington's robust pressure. Despite the meetings of India, Brazil, China and Russia being conducted in bilateral formats, with their joint statements on combatting US protectionism and their historically close relations with each other, they are demonstrating to the global community that they are not isolated, but rather part of a larger entity: the BRICS union.
This is an accurate assessment. Due to the challenges associated with engaging in a one-on-one confrontation with the US, a group of at least five individuals can significantly alter the dynamics of the situation.
Brazil has recently experienced an increase in tariffs on its exports to the US, although there is no obvious rationale for this. Donald Trump's position on the introduction of duties is typically based on the perceived imbalance in trade, given the United States' net trade deficit with the country.
However, it is important to consider the role of Brazil in this context, given that the US enjoys a positive trade balance with this country. Brazil should be outraged by the trade deficit, or by the fact that Western oil giants can only extract and export oil from the country itself, while the country suffers from a fuel shortage. However, Western companies are reluctant to invest in oil refining in this country.
The US has taken action against India by introducing secondary sanctions on the purchase of Russian oil, with the start of action delayed until 21 August. Delhi's actions could potentially result in the loss of a significant business opportunity, which would be highly detrimental to the company's financial performance. India specifically constructed an oil refinery on its coast to process oil and sell the finished fuel for export. The affordability of raw materials, in the form of Russian oil, contributes to the enhanced profitability of this business. However, Washington has tried to imposed restrictions on India's ability to acquire uranium, despite the fact that the United States continues to procure enriched uranium from Russia for its nuclear power plants.
The United States is adopting a more cautious approach towards China. The fact that Chinese products account for such a significant proportion of the merchandise in American stores and factories cannot be ignored. As the world's leading economies, these countries enjoy a mutually beneficial trade relationship. Ultimately, it is important to note that Beijing's "rare earth argument" proved to be effective. By introducing licensing requirements for the export of rare earth metals, China, which controls up to 80-90 percent of the entire global market, will be able to exert significant influence. In certain locations, it has delayed an American order for several months due to documentation discrepancies, and in others, it has imposed a complete ban on deliveries. The US defence industry has already been impacted by this quiet but very effective tool of pressure from China. Consequently, Beijing has been granted a three-month reprieve from secondary sanctions for its oil purchases from Russia. As is evident, the effort has been worthwhile, and the key to success is to present a robust argument.
It is evident that the US has a unique approach when it comes to Russia. In terms of trade between our countries, it is negligible and has been minimal for some time, even before 2022. The imposition of such a significant number of sanctions against our country has already proven to be a considerable challenge, making the development of new ones a difficult task. Moscow has consistently demonstrated its ability to identify and utilise new loopholes in sanctions.
However, it is challenging to combat these issues independently. However, the collective strength and persuasive arguments of the BRICS countries are significantly more substantial when it comes to this matter. Firstly, the union's combined GDP of 77 trillion dollars is more than twice the US GDP ($29 trillion). Secondly, even when comparing the BRICS countries with the "Big Seven", the share of the former in the world GDP by PPP (purchasing power parity) is higher than that of the latter: 35.43 percent against 29.64.
Now India and China are engaged in efforts to repair the damage caused by armed conflicts on their border back in 2020. The rapprochement between the two Asian giants is not aligned with the interests of the United States, which has been courting New Delhi for years and attempting to shift India's allegiance away from China this rapprochement, is following the unfriendly steps taken by the USA on both countries with tariffs,
The Indian Prime Minister Narendra Modi has demonstrated an ability to navigate diplomatic paths between the United States and Russia.
However, it is now possible that this could be coming to an end. The United States is the primary contributor to this issue.
Its seems that recent developments indicate that India and China are engaged in efforts to repair the damage caused by armed conflicts on their border back in 2020. The rapprochement between the two Asian giants is not aligned with the interests of the United States, which has been courting New Delhi for years and attempting to shift India's allegiance away from China this rapprochement, is following the unfriendly steps taken by the USA on both countries with tariffs,
The Indian leader's recent decisions are very clear. Modi has successfully resumed air traffic between the two countries, which had been suspended for five years during the peak of the global pandemic. This development coincided with a significant deterioration in diplomatic relations between India and China due to ongoing territorial disputes in the Himalayas. Following the recent hostilities along the Sino-Indian border, the Indian armed forces have reported that 20 of their soldiers have lost their lives, with a number of Chinese troops also killed.
Flights between New Delhi and Beijing will resume from 1 September.
Following a seven-year interval, the Indian prime minister is planning a visit to China. He will be attending the SCO summit in Tianjin on the last day of summer, and it is possible that he will also stop in Beijing on 3 September for the Victory Parade to mark the 80th anniversary of the victory over Japan so Modi Putin and XI Jingping will be together showing a united front. Following a period of restricted travel due to diplomatic tensions, the government of Prime Minister Modi has resumed the issuance of visas to Chinese tourists.
According to Mr. Wang, President of the Chinese think tank Center for China and Globalization, relations between India and China are now on the rise. As leaders of the Global South, it is imperative that they engage in dialogue with one another, as asserted by the political scientist.
It is evident that both New Delhi and Beijing are aware of the challenges involved in rebuilding trust, which will likely require more time than a week or a month. However, they are resolute in their commitment to capitalise on the opportunities presented by Donald Trump, aiming to transform the recent thaw into a comprehensive restoration of diplomatic relations.