China and Russia Strengthen Financial Ties and BRICS Cooperation, Focus on Local Currency Use, Payment Systems, and Global Economic Governance
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China and Russia have strengthened their partnership in currency, finance, and within the BRICS framework after a meeting between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin.
Both countries agreed to increase the use of their local currencies in trade, improve their payment systems, and boost mutual investments.
They are also focused on enhancing cooperation in areas like artificial intelligence, sustainable development, and global governance.
Russia and China have almost completely switched to mutual settlements in national currencies – their share already amounts to more than 95%.
This was stated by Russian Prime Minister Mikhail Mishustin at a meeting with Premier of the State Council of the People's Republic of… pic.twitter.com/CL5BD6LtoJ
— Newspaper articles collection (@NewsArticleColl) August 21, 2024
Therefore, this partnership marks a significant step toward reducing reliance on the US dollar and fostering closer ties within BRICS.
By promoting local currency use and collaborating in advanced technologies, China and Russia aim to build a more resilient and self-sufficient economic relationship.
This cooperation is also expected to contribute to global efforts in sustainable development and governance, reflecting their shared vision for a multipolar world.
China and Russia Strengthen Financial Cooperation and Local Currency Use within BRICS
According to China’s Ministry of Foreign Affairs, a Joint Communiqué was released after the 29th Regular Meeting of the Chinese and Russian Prime Ministers. The document, signed in Moscow by Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin, emphasized the importance of enhancing cooperation in currency and financial matters within the BRICS framework.
As per the communiqué, both countries agreed to continue supporting the high level of local currency use in their trade, investment, and other economic activities. This commitment reflects their focus on maintaining and possibly increasing the use of their national currencies in bilateral dealings, reducing reliance on foreign currencies like the US dollar.
China and Russia Enhance Financial Systems and BRICS Collaboration
It should also be noted that China and Russia have committed to improving their payment and settlement systems. This includes opening correspondent accounts and setting up bank branches in each other’s countries. They emphasized the importance of using local currencies in trade, making payments more convenient, and encouraging mutual investments. These steps aim to strengthen their financial cooperation and reduce reliance on foreign currencies.
Apart from this, China and Russia also share a common goal of enhancing collaboration within the BRICS group. They are particularly focused on areas like sustainable development, artificial intelligence, and protecting global supply chains. The communiqué highlighted Russia’s support for China’s initiative to create the “China-BRICS Artificial Intelligence Development and Cooperation Center.” This reflects their commitment to working together on AI advancements and improving global governance within the BRICS framework.
China and Russia Deepen BRICS Collaboration and Commit to Global Economic Governance
On the other hand, the communiqué outlined plans for deeper collaboration within BRICS and other international organizations. Russia and China emphasized their commitment to advancing the BRICS agenda, which includes hosting and participating in BRICS summits and supporting projects like the BRICS New Industrial Revolution Partnership.
They also highlighted the importance of BRICS in global economic governance, focusing on expanding cooperation in areas such as trade, digitalization, and environmental protection.
Therefore, the impact of this news is significant as it shows the growing alignment between Russia and China within BRICS. Both nations are united in their stance against the politicization of economic and trade issues, stressing the need for fair and non-discriminatory trade practices under the BRICS framework.
This deepening cooperation could lead to more coordinated efforts in global economic governance, potentially reshaping international trade and economic policies in line with the interests of BRICS countries.
