Amid escalating global tensions, Russia and China are strengthening their alliance, demonstrating a united stance against American policies.
This cooperation is a big change in international relations, reflecting the intention of both countries to challenge US dominance on various fronts.
Leaders don't mess around
dent Vladimir Putin and Chinese Prime Minister Xi Jinping recently held a series of meetings that highlight the growing partnership between their countries.
The private walk was followed by heated discussions involving Russia's new Defense Minister Andrei Belousov and his predecessor Sergei Shoigu, now secretary of the Security Council.
Putin's top foreign policy advisers also took part in these talks, underscoring the depth of the dialogue. Notably, Putin joined Chinese leaders last Friday to honor Soviet soldiers in northeast China.
The ceremony, part of a wider series of events including the China-Russia Exhibition, symbolizes strengthening ties between the two countries.
While official statements from Chinese leaders have been rare, the implications of these gestures are clear.
Russia and China are making big economic strides
Economic interaction between Russia and China indicates a strategic shift away from dependence on Western economic structures.
China recently sold a staggering $53.3 billion in US Treasuries and bonds, the largest such sell-off it has ever undertaken and occurred in the first quarter of 2024. This decision coincides with a huge drop in the US dollar, which has reached level 1. monthly low 104.20.
This trend is not isolated. Since 2022, the BRICS countries, led by China, have been gradually divesting themselves of US assets, signaling a move to other reserves, primarily gold.
Last year, China alone added several tons of gold to its reserves, worth about $550 billion. Stephen Chiu, Bloomberg Intelligence's chief Asia FX and FX strategist, noted:
“With China selling both, even though we are close to a Fed rate cut cycle, there must be a clear intent to diversify its dollar holdings.”
The changes extend beyond China. Even Belgium, a close US ally, distanced itself by dumping $22 billion in US Treasuries. These movements are part of a broader de-dollarization strategy adopted by the BRICS countries, aimed at undermining the global hegemony of the US dollar.
BRICS is on the way to a new economic model
The BRICS strategic economic policy culminates in the development of a new currency, which is a direct challenge to the supremacy of the US dollar.
Iranian Ambassador to Russia Kazem Jalali confirmed the cooperation between Russia and Iran on this ambitious project.
“Creating a new single currency within the framework of the association is what Russia and Iran are working on.”
Kazem Jalali
Jalali said, noting that more than 60% of trade between the two countries now operates without the US dollar, favoring local currencies.
This is part of a strategy aimed at creating a multipolar world in which economic dominance is more evenly distributed.
The introduction of a BRICS currency could shake global trade at its core, reducing Western influence and strengthening the economic sovereignty of developing countries.
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