China Hosts Major BRICS Economic Summit in Shanghai to Boost Global Trade

Post by : Priya

  Photo:Reuters

In the heart of Shanghai, one of China’s most dynamic cities, the BRICS nations—Brazil, Russia, India, China, and South Africa—gathered this July for a major economic summit. The two-day event, held at the National Convention and Exhibition Center, signaled a renewed focus on trade, development, and unity among some of the world’s fastest-growing economies.

As the global economic landscape faces fresh challenges—from inflation and geopolitical tensions to climate change and digital disruptions—the BRICS summit aimed to present a united front. It also emphasized the importance of shared responsibility and opportunity among emerging markets.

Understanding BRICS: A Coalition of Rising Economies

BRICS, formed in the late 2000s, represents a powerful coalition of developing nations. Together, these five countries account for over 40% of the world’s population and nearly one-third of global GDP. While they differ in size, language, and culture, they share a common goal: to create a fairer, more balanced global economic order.

The group was formed as a response to what many felt was an unfair dominance of Western institutions like the International Monetary Fund (IMF) and the World Bank. Over the years, BRICS has focused on mutual development, south-south cooperation, and building alternatives to traditional Western-led systems.

This year's summit in Shanghai marked a new phase for the group, with expanded goals and renewed commitments.

Key Areas of Focus

During the two-day gathering, the leaders and ministers focused on several main themes, each aimed at strengthening cooperation and promoting growth. These included:

1. Boosting Trade and Investment

One of the most pressing topics was how to increase trade among BRICS countries. With rising global inflation and supply chain disruptions, many member states are looking to reduce dependence on Western markets and currencies. A major proposal discussed was expanding the use of local currencies in trade settlements—a move that could cut transaction costs and protect national economies from currency fluctuations.

2. Strengthening the New Development Bank

The New Development Bank (NDB), established by BRICS in 2014, was another major focus. This bank funds infrastructure and development projects in member nations and other emerging economies. China announced additional contributions to the bank’s capital and called on other members to do the same. The goal: to make the NDB a stronger, more effective alternative to institutions like the World Bank.

3. Technology and Innovation Cooperation

Recognizing the rapid pace of digital transformation, BRICS nations agreed to deepen collaboration in areas like artificial intelligence, cybersecurity, and e-commerce. A proposal to develop a BRICS-wide digital payment system received strong support. Such a platform could make cross-border payments faster and safer while reducing the influence of the U.S. dollar on international trade.

4. Sustainable Growth and Climate Goals

Environmental issues were also high on the agenda. The group supported new green initiatives such as clean energy investments, joint climate research, and eco-friendly infrastructure. The leaders called for more balanced climate agreements that respect the rights and development needs of poorer nations.

5. Health, Education, and Cultural Exchange

Beyond economics, the summit touched on cooperation in public health and education. President Xi Jinping of China proposed new scholarship programs for BRICS students and more cultural exchanges. Such efforts, he said, could strengthen trust and understanding among citizens of the five nations.

Leaders Speak: Voices from the BRICS Nations

Each national leader shared their views, emphasizing unity and shared responsibility.

President Xi Jinping (China)

President Xi opened the summit with a strong call for fairness and global balance. “BRICS represents the voice of the developing world,” he said. “We must stand for justice, cooperation, and peaceful development.”

He stressed the need to reform the global financial system and give emerging economies a greater voice in international institutions. Xi also encouraged BRICS to lead in areas like climate action, digital economy, and disaster response.

Prime Minister Narendra Modi (India)

Prime Minister Modi focused on trust, transparency, and technology. He highlighted India’s success in digital innovation and invited other BRICS members to partner on digital infrastructure and cybersecurity.

Modi also supported the idea of a BRICS startup fund and offered India’s experience with fintech and AI to help other nations grow their digital economies.

President Luiz Inácio Lula da Silva (Brazil)

President Lula emphasized the importance of food security and social justice. He spoke of Brazil’s efforts to fight hunger and poverty and urged BRICS to take a leadership role in supporting small farmers and promoting fair trade.

He also pushed for a bigger BRICS role in global agriculture and climate policy.

President Cyril Ramaphosa (South Africa)

President Ramaphosa called for more inclusive economic policies. He warned that inequality, both within and between countries, remains a major threat to stability. He called for targeted investments in education, healthcare, and job creation across Africa and other developing regions.

Ramaphosa welcomed China’s offer to expand the BRICS Africa Outreach program and asked for greater cooperation in health and vaccine production.

President Vladimir Putin (Russia)

Though attending remotely due to ongoing international sanctions, President Putin reaffirmed Russia’s commitment to BRICS cooperation. He spoke about alternative payment systems and praised the idea of reducing reliance on Western financial networks.

Putin emphasized that BRICS could offer “real solutions to real-world problems,” especially in times of geopolitical tension.

BRICS Summit 2025