Brics investment deals good news for poor South Africans

Larry Hoffman
July 26, 2018

Sharing the stage with his Chinese counterpart, Xi Jinping, at the start of Brics 10th summit, Ramaphosa singled out the bank's establishment as "one of the most important achievements of the first decade of Brics".

Beijing this week sharply rejected accusations by Mr Trump that it was manipulating the yuan to give its exporters an edge, saying Washington appeared determined to provoke a trade war, according to AFP.

"China is ready to invest and work with South Africa in various sectors, such as infrastructure development, ocean economy, green economy, science and technology, agriculture, environment and finance", Ramaphosa told reporters.

He believed the countries taking part in the summit - China, Russia, India, Brazil and South Africa - should be resolute against closed-door protectionism.

Earlier this year, Curtis Chin, a former USA ambassador to the Asian Development Bank and managing director of advisory firm RiverPeak Group, told The National The UAE may well be a contender as the next Brics country.

The BRICS group, comprising more than 40 per cent of the global population, represents some of the biggest emerging economies, but it has struggled to find a unified voice.

Mr Ramaphosa said: "We are concerned by the rise in unilateral measures that are incompatible with World Trade Organization rules and are anxious about the impact of these measures, especially on developing countries".

Jinping said emerging markets and developing countries already contributed to 80% of global development, charging that the collective rise of emerging markets was "unstoppable".

"I think that something that is pertinent that relates to the United States and President Trump's administration is, of course, their protectionist measures that they have put on in terms of trade, and the trade wars that have every country in the globe speaking", analyst Luanda Mpungose told VOA.

The flags of the BRICS member nations. Xi's state visit took place ahead of the 10th BRICS summit, scheduled for July 25-27.

The US has also imposed duties on South African steel and aluminium products, citing national security concerns, while tariffs on automotive products have been mooted.

The other leaders of BRICS countries - Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Brazilian President Michel Temer - are expected to join the three-day meeting in South Africa.

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