China Proposes POWER Framework for Expanded BRICS Grouping

#GS-2 #Current Events #International #Economy #BRICS #India-China Relations

Key takeaways

Chinese Ambassador Xu Feihong introduced the POWER framework ahead of the 18th BRICS Summit in New Delhi to strengthen Global South cooperation.
The expanded Greater BRICS bloc represents nearly 50% of the global population and accounts for approximately 30% of global GDP.
According to IMF estimates, Greater BRICS economies will expand nearly 3 times faster than G-7 economies through 2028.
India faces a heavy structural trade deficit with China exceeding $85 billion, presenting a major hurdle to bilateral economic harmony.
India and China will hold successive BRICS presidencies in 2026 and 2027, giving both nations a key chance to drive global governance reforms.

Chinese Ambassador Xu Feihong proposed the POWER framework for Greater BRICS ahead of the 18th BRICS Summit in New Delhi.
The framework calls for stronger Global South cooperation, closer India-China coordination, and collaboration on AI and supply chains.

The BRICS grouping evolved from an economic dialogue forum into a key multilateral platform for the Global South after its recent expansion.
It offers a strong alternative to traditional Western-led institutions like the G-7.
India will chair BRICS in 2026 and China will chair in 2027.
The proposed architecture sets out five core pillars for political, financial, technological, and developmental cooperation across emerging markets.

Greater BRICS members represent nearly half of the global population, giving them huge domestic consumer bases and labor pools.
The expanded bloc generates about 30% of global GDP, with its PPP share exceeding one-third.
IMF estimates show that Greater BRICS economies will grow almost three times faster than G-7 nations through 2028.
BRICS countries handle 20% of global trade turnover and control key supply nodes in electronics, steel, critical minerals, and agriculture.
India and China resumed five direct commercial mainland flight routes and reopened border trade after 6 years following diplomatic consensus.

Principle requires member states to follow the UN Charter by respecting sovereign equality, avoiding internal interference, and solving border disputes peacefully.
Member states must counter unilateral actions by supporting initiative frameworks like Beijing's Global Security Initiative.
Openness calls on countries to protect the WTO-led multilateral trading system and uphold non-discriminatory Most-Favoured-Nation status.
Members should resist geopolitical decoupling and high tariffs while boosting cross-border work in infrastructure, energy, and supply chains.
Win-Win emphasizes keeping social and economic development at the center of global talks to achieve UN Sustainable Development Goals.
Countries should expand local-currency settlements, cross-border payment links, and credit setups to protect against currency shocks and Western sanctions.
Engine urges the bloc to drive global economic growth by expanding cooperation in digital public infrastructure, green tech, and smart manufacturing.
Members should share Artificial Intelligence tech through institutions like the China-BRICS AI Development and Cooperation Center.
Responsibility focuses on using the back-to-back chairing terms of India in 2026 and China in 2027 to bring policy stability to the 10-member group.
The alliance must push for reforms in the IMF, World Bank, and UN Security Council to give developing nations a bigger voice.

India views BRICS as an independent coalition for strategic autonomy, while China and Russia often treat it as an anti-Western bloc.
India faces a massive trade deficit with China exceeding $85 billion, along with trade barriers for pharmaceuticals and farm products.
Unresolved Line of Actual Control border disputes and river dam construction create continuous friction between India and China.
Switching to local currencies remains hard due to strict capital controls and limited currency convertibility.
Adding diverse Middle Eastern and African nations makes it harder to reach a consensus on security and trade issues.

India and China should use their 2026 and 2027 summits to align Global South goals while maintaining peace along their shared border.
Members should strengthen the New Development Bank and link digital payment networks like UPI with national digital currencies.
Countries must establish transparent, human-centered governance rules for Artificial Intelligence to avoid corporate monopolies.
The bloc should build diversified supply networks for renewable energy, fertilizers, and minerals to protect members from export controls.
Member states must keep pushing for quota updates in the IMF and World Bank, alongside permanent UN Security Council seats.