The economic relationship between Russia and China is strengthening after President-elect Donald Trump threatened Beijing with "100% tariffs" should the communist state join the other BRICS nations in developing a trading alternative to the U.S. dollar.
Chinese Foreign Ministry Spokesman Lin Jian responded to Trump's threat this week by indicating that China plans to work more closely with Russia, India, Brazil, South Africa, the United Arab Emirates (UAE), and all the other nations that are planning to join BRICS in the coming days.
(Related: Another 40 countries announced this year that they would like to join the BRICS alliance – and 97 countries participated in the BRICS 2024 Games hosted by Putin.)
According to Jian, the purpose of BRICS is not to engage in "bloc confrontation" or to "target any third party" like the United States seems to be saying. It instead exists to improve the global economy at large.
"China stands ready to continue working with BRICS partners to deepen practical cooperation in various fields and make more contribution to the sustained and steady growth of the world economy," Jian said.
"BRICS cannot be broken"
For those who missed it, Trump took to Truth Social over the weekend to write that he is planning to ask the BRICS nations not to create a common currency "nor back any other currency to replace the mighty U.S. dollar" or they can look forward to 100% tariffs on their goods.
Trump has long spoken of tariffs as a means to settle U.S. trade deficits and force offshore manufacturers to return to the United States. Tariffs can also be used to accomplish various other geopolitical goals, which is why Trump is focused on them as a tool to bring about change.
It was June 2022 just months after he invaded Ukraine that Russian President Vladimir Putin announced that BRICS member nations are looking into the possible creation of a new U.S. dollar alternative to serve as a new international reserve currency.
Putin spoke about replacing the dollar after the West imposed Ukraine-related sanctions on Moscow that cut Russia off from the global financial system, which is still denominated in the dollar.
Brazilian President Luiz Inacio Lula da Silva stated in 2023 that he supports the idea of creating "a trading currency" within BRICS, "just like the Europeans created the euro." It is still too early to do this, though, as BRICS needs further development and integration.
The short-term plan with BRICS is to create a new cross-border payment system that will operate alongside the Western-controlled SWIFT network. This will allow BRICS member nations to buy and sell among each other using local currencies, effectively bypassing Western sanctions.
"BRICS cannot be broken," a commenter wrote. "The U.S. will learn this humbling lesson."
"Declaration of BRICS being terrorist organisation by Uncle Sam and Happy Merchant coming soon," wrote another.
By the look of things, Trump has only two options to "Make America Great Again" like he is promising, suggested someone else.
"Either start WW3 for which he is unprepared, under-armed or under-financed, OR join BRICS and use his business skills to peacefully rebuild his crumbling empire ..."
Western hegemony is clearly under threat by the booming Global South, explained another.
"The G7 countries are loan sharks but BRICS isn't buying. The cult of money and majesty; old wealth, hereditary title, divine rule, political privilege is all coming to an end. The U.S. will collapse. When it happens, it will be so fast EVERYTHING will be hit within minutes. One wild, wild decade that is going to be."
The latest news about Trump's plans for the economy can be found at Trump.news.
Sources for this article include:
Please contact us for more information.