(Economic Observer) Responding to the questions of the times, BRICS economic and trade cooperation opens a new chapter
The 16th BRICS Summit has concluded, and the Kazan Declaration released after the meeting indicates that this gathering has opened new avenues for economic and trade cooperation among BRICS nations, allowing them to better address the pressing questions of our time.
**Opposition to Unilateral Protectionism**
Currently, global trade tensions remain high, with numerous unreasonable trade barriers emerging. According to research from the China Council for the Promotion of International Trade, the global trade friction index was at 102 in July, indicating that it persists at elevated levels. This raises significant choices for the future of global trade: should we continue to pursue free and open trade, or allow protectionism to intensify? The choices made here will have profound implications for global trade.
In response, the Kazan Declaration provides a clear stance. BRICS nations reaffirm their support for a multilateral trading system centered on the World Trade Organization (WTO), grounded in rules and consensus, promoting an open, transparent, fair, predictable, inclusive, equal, and non-discriminatory trading environment. The declaration also expresses the collective intent of BRICS countries to take unified action against unilateral protectionist measures that do not comply with existing WTO regulations.
With BRICS representing approximately 30% of global GDP and one-fifth of total global trade, their firm stance in favor of multilateral trade is significant for the future of international commerce. During the summit, China also announced the establishment of a cooperation center for special economic zones among BRICS nations.
These zones, including free economic zones, free ports, and free trade areas, play an important role in trade and investment cooperation. He Yadong, a spokesperson for the Chinese Ministry of Commerce, stated that this innovative initiative will enhance practical cooperation among BRICS nations in economic and trade sectors through industrial alignment, policy research, experience sharing, and capacity building.
**Enhancing Digital Economic Cooperation**
The declaration features extensive discussions on cooperation in the digital economy. It emphasizes the critical role of data in development, encouraging BRICS nations to explore collaborative activities in the field of digital infrastructure, as well as promoting policy exchanges and dialogues on artificial intelligence.
Initial steps have already been taken, with the recent establishment of the China–BRICS Artificial Intelligence Development and Cooperation Center, alongside initiatives to create a Chinese center for industrial capabilities among BRICS nations and a digital industry ecosystem cooperation network.
Analysts point out that historical experiences show that a nation’s path to industrialization and modernization hinges on technological development, particularly the ability to keep pace with or even lead in technological revolutions. The ability of BRICS countries to align with the new wave of technological revolutions and industrial transformations is a crucial question for their future.
Ren Lin, a researcher at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, believes that as developed countries push for decoupling and disrupt the productivity of emerging industries, BRICS nations emphasize expanding cooperation in digital economies and other emerging fields. This not only demonstrates their strong commitment to opposing unilateralism from a Global South perspective, but also showcases their determination to explore new sources of productive forces and foster high-quality growth among member nations.
**Encouraging Local Currency Use Among Trade Partners**
Another key issue facing the Global South is how to effectively respond to spillover effects from external shocks, particularly due to fluctuations in the financial and monetary policies of some developed economies. Enhancing risk resilience and promoting more inclusive and equitable international finance remains an urgent concern.
In the realm of financial cooperation, the declaration encourages BRICS nations to use local currencies in trade transactions with their partners. It promotes strengthening the network of correspondent banks among BRICS countries and supports the non-binding BRICS cross-border payment initiative for local currency settlements.
The declaration also mentions the willingness of BRICS countries to voluntarily discuss and explore the feasibility of establishing a “BRICS securities custody and settlement infrastructure” to complement existing financial market infrastructures.
Wang Yuxin, a senior researcher at the Bank of China Research Institute, highlights that deepening monetary cooperation can provide a conducive monetary and financial environment for industrial collaboration within BRICS and enhance their collective capacity to address international financial crises and liquidity issues.