In the wake of recent penalties imposed on Russia, there are discussions underway about the potential for similar sanctions on China, another member of the BRICS alliance. These discussions occur amidst their collaboration with Moscow and their persistent moves to replace the US dollar as their primary trade currency.
Responding to the increasing sanctions from the US Department of Treasury, Russia embarked on a drive towards de-dollarization this week. The Moscow Stock Exchange paused trading in US dollars and Euros, escalating the geopolitical contention.
Over the past several years, the BRICS alliance has been making strides to enhance its global influence. The misuse of western currencies prompted the alliance to explore alternative options. It implemented several strategic policies to diminish the group’s reliance on those currencies.
In response, the West is contemplating countermeasures. Following the levying of new sanctions on Russia, there are discussions regarding the potential imposition of comparable sanctions on China. According to a report from the Financial Times, China’s support for Moscow poses a “long-term threat” to the security of the G7 grouping.
The G7 grouping is reportedly worried about China’s support of Russia amidst the ongoing conflict with Ukraine, and is considering action against China. This topic is expected to be a key issue of discussion during the group’s final summit meeting in Puglia.
Remarks have also been made by President Biden on the alliance between China and Russia. He highlighted China’s role in facilitating Russia’s capability to manufacture various weaponry, a matter the Biden Administration deems as a “critical issue.”
The BRICS alliance has been openly expressing its stance on the US and the dollar. The group has made concerted efforts to augment the use of local currencies, evidenced by the signing of a significant trade agreement promoting those currencies.
