Ahead of BRICS meeting,China targets dollar power

In fact,other countries like Brazil and South Africa are also likely to have serious questions because just like India,they are also major trading partners of the US. Given that any such arrangement would largely translate into a Yuan trade due to China’s economic predominance,the concern in New Delhi is that it should not get caught up in Chinese efforts to outdo the US.

What has surprised most interlocutors about China’s move is that it comes after member countries had generally agreed not to make much out the Yuan exchange rate issue. This was a matter of concern for Beijing as it did not want BRICS to discuss an issue which is at the top Washington’s list of problems with China.

It was subsequently felt that BRICS should explore ways of economic cooperation based on areas of convergence than dwell on issues where there may be differences. But this move from Beijing has raised fears whether the effort is to project BRICS as an alternate rule-maker on global economic issues backed by the fact that these five countries are the biggest emerging economies of the world accounting for over 20 per cent of the world GDP.

While China looks at BRICS as a way to enhance its global prestige,India,Brazil and South Africa would like to use this opportunity to raise the problem of trade imbalance with China. It may be recalled that India had brought up this issue with Chinese Premier Wen Jiabao during his visit last December. Most of these countries are concerned by the bilateral trade balance being hugely in favour of China and in case of India,the worry is also that Indian companies find it difficult to expand business there.

India is keen to achieve some coordination on this front to obtain some assurances and commitments from China to its BRICS partners in order to create a level-playing and transparent trade environment. One of the objectives,sources said,would be to have a progressive conversation with China in a more equal setting involving all the major emerging economies.

Politically,the grouping is expected to endorse common positions on a range of issues including the opening up of top positions in the World Bank and the International Monetary Fund to other countries outside North America and Europe. They will also look at taking joint positions on economic issues in the G-20.