China floating the idea for a BRICS free trade bloc



China has proposed a free-trade bloc among the five BRICS countries in a bid to enhance economic ties within the decade-old grouping, as its geopolitical rivalry heats up with the United States.

Trade between Brazil, Russia, China, India and South Africa has huge potential to expand, as it accounts for only 6 per cent of the countries' combined trade today, despite major emerging economies contributing to about one-fifth of global trade, said vice-commerce minister Wang Shouwen.

"To build a free-trade agreement is a very important means to tap this trade potential, which China is willing to discuss with other BRICS countries," he told a panel at the BRICS Business Forum on Wednesday.

Beijing is trying to consolidate its trade interests as Washington tries to box in China's economic influence with the Indo-Pacific Economic Framework (IPEF), while banning imports from Xinjiang over alleged forced labour.

India, though part of the BRICS grouping, is a member of IPEF and the US-led Quad alliance.

China does not have a free-trade deal with any of the other four BRICS countries.

Its relations with Moscow have been put under the microscope after Russia's invasion of Ukraine, while ties with India remain strained due to border issues.

Putin also said that contact between the Russian business community and BRICS partners had intensified.

Negotiations were under way to open Indian chain stores in Russia and increase the share of Chinese cars, equipment and hardware entering the Russian market. There has also been a "noticeable increase" in the exports of Russian oil to China and India.

The document said BRICS countries will cooperate on the economy and trade, while stepping up investment coordination to enhance the stability, diversity and resilience of the supply chain.

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