By Laurence F. Sanford
ASCF Senior Analyst

 

July 28, 2025- China dominates BRICS, an association comprised of Brazil, Russia, India, China, and
South Africa, which seeks to challenge Western financial and trading institutions. It
openly states a desire to replace the US dollar as the world’s reserve currency.

 

BRICS was organized in 2010 to reduce US economic influence worldwide and to
develop alternative payment methods to the US dollar. It has since added Egypt,
Ethiopia, Indonesia, Iran, and the United Arab Emirates as members. China is the
dominant member, with a GDP roughly equivalent to the sum of all other members
combined.

 

At the BRICS summit held in Rio de Janeiro, Brazil, on July 6-7, 2025, President Lula
da Silva of Brazil, Prime Minister Modi of India, and President Cyril Ramaphosa of
South Africa were in attendance. President Xi of China was notably absent; instead, Premier
Li Qiang represented China. Xi reportedly skipped the meeting due to mounting economic woes,
military leadership issues, and a major political leadership meeting. Other theories regarding Xi’s absence
include possible medical problems; his displeasure with Brazil's decision not to join the
Belt and Road Initiative; and unhappiness with Brazil’s first lady who at a Beijing
banquet, criticized TikTok for being detrimental to children.

 

President Putin of Russia was absent due to an International Criminal Court (ICC) arrest
warrant, issued for the unlawful deportation of Ukrainian children in the ongoing Russian
invasion of Ukraine. Putin did appear in a virtual call to celebrate BRICS de-dollarization
in trade among member nations. Putin is looking for BRICS nations to help Russia avoid
Western sanctions and aid in his war with Ukraine.

 

Without the support of China, Putin would not be able to conduct the war against
Ukraine effectively. Chinese industrial supplies are integral to Russian military
equipment, including missiles and drones. Many industrial supplies are dual-purpose
and used in both military and civilian equipment.

 

In 2022, China purchased over $88 billion in Russian oil at discounted prices. The oil
reaches China through a combination of Arctic and Indian Ocean shipping routes,
utilizing “dark or shadow fleet” ships that operate without tracking transponders, as well
as pipelines. China avoids Western sanctions because the oil is processed through
small local Chinese refineries that are immune to Western sanctions.

 

BRICS Brazil issued positions on climate change, artificial intelligence, and poverty in
countries of the Global South. Additionally, BRICS criticized President Trump’s tariffs for
violating World Trade Organization (WTO) rules and causing disruptions to the global
supply chain. The US was also criticized for attacking Iran, a fellow BRICS member.

 

Brazilian President Lula denounced the “genocide” of Israel attacking Gaza, but made
no mention of Hamas initiating the war, killing over 1,200 Israelis, and committing
atrocities. Lula also met with Dilma Rousseff, President of the New Development Bank,
to celebrate the progress of the “BRICS” bank in providing financial aid to Global South
countries. Rousseff is Brazil’s former president who was impeached in 2016 for
corruption and forced to leave office. She previously served three years in jail for far-left
subversion.

 

The New Development Bank (NDB) was established by BRICS in 2015 to mobilize
resources for development projects in emerging markets and developing countries.
NDB is headquartered in Shanghai, China.

 

Summary

 

BRICS is a China-led association of countries from the Global South that aspire to
develop their economies and reduce the influence of more prosperous Western
countries, led by the US. Left unspoken is China’s goal to replace the US as the world’s
dominant power.

 

Not all BRICS countries are united. India has serious issues with China on territorial
claims, military buildup, and economic rivalry. India banned TikTok for subverting Indian
culture.

 

President Trump has threatened tariffs against BRICS countries that undermine the US
dollar as the world’s reserve currency, and create an alternative currency. Trade
between China and Russia bypasses the US dollar, and uses the Chinese renminbi
currency, with the basic unit of the yuan. The renminbi is not widely used due to its
limited convertibility compared to the dollar. Chinese purchases of Russian oil fund the
Russian military budget. Cryptocurrencies and AI may change how trade payments are
made in the not-too-distant future.

 

BRICS is here to stay in one form or another. It is perfectly natural for nations to
cooperate to further their economic and political interests. The issue is in defining these
interests.

 

The industrial nations of the world, led by the US, formed the Group of 7 (G-7), a seven-
nation Western intergovernmental forum organized around shared values of liberal
democracy. The Group of 20 (G20) includes sovereign countries, the European Union,
and the African Union. It works to address the global economy, financial stability, and
development.

 

Action

 

1. More trade and less aid. Empowering free market trade leads to prosperity
and freedom. Aid channeled through government and NGOs often leads
to corruption and reduced freedoms.

2. Expand the G-7 and G20 international forums to include more countries
from the Global South.

3. Expose China for its state-controlled, mercantilist policies that harm the
economies of Global South countries.

4. Recognize that China is waging unrestricted warfare against the United
States.

 

PEACE THROUGH STRENGTH!