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Building BRICS of growth

By Zhang Qizuo | China Daily | Updated: 2013-03-22 07:09

Healthy global interaction will help Chinese entrepreneurs' innovation

In recent years, BRICS countries have become one of the leading forces in the global economic recovery. Together they account for about 40 percent of the total world population, about 20 percent of global GDP and more than 15 percent of global trade volume. The BRICS also contribute more than 50 percent of global economic growth. Their increasing economic strength is reflected in the robust growth of all the major economic indicators.

However, the rise of the BRICS nations also comes at a time when many of the Western developed nations are in the midst of a recession. The seemingly unstoppable growth momentum of the BRICS nations has slowed due to the downward pressure created by the recession in developed Western nations.

At the same time, emerging nations have also been affected by the developed countries' quantitative easing monetary policies and now face imported inflation and even stagflation risks. Coupled with their own varying degrees of "growing pains" during social transformation, economists predict possible growth dividend losses and growth bottlenecks in these emerging countries. In other words, their high growth advantage is gradually being weakened.

China's growth has been particularly helpful to Brazil and South Africa's resource exports. Although China and other BRICS nations have many common interests, there will be fierce industrial competition among them due to their similar advantages.

While such a situation leads to fair competition, it also brings with it prospects of increased cooperation. The greater economic development potential will also bring challenges to the existing rules of international trade patterns, and a stage will come when the global economy will have to pay heed to the aspirations of the BRICS nations.

It is important for the BRICS countries to further enhance their cooperation mechanisms. Strengthened strategic coordination among these nations will help them play the game with developed countries, and to jointly safeguard their overall interests.

The mechanism of regular meetings among the leaders of the BRICS countries is committed to helping the international community understand and appreciate the concerns of developing countries. Cooperation between the BRICS countries is based on equality and mutual trust, and they will adhere to pragmatic cooperation with substantive cooperation measures.

In addition, their sustained cooperation will in part determine whether the BRICS countries can play a bellwether role in the new round of industrial development and make a breakthrough in technology development.

For China, the integration of manufacturing and services is a trend. Leaders of the BRICS countries have made it clear during their regular high-level meetings that they have identified a cooperation framework, but practical measures still need to be figured out.

The new Chinese government prioritizes the development of strategic and emerging industries and aims to make the transformation from manufacturing power to innovation power.

In the face of the new economic structure adjustment, China is in urgent need of further breakthroughs in innovation. Strengthening the ties between enterprises in the BRICS countries will help Chinese entrepreneurs participate in the development and exchange of global strategic emerging industries, build a people-oriented modern industrial system and promote green and sustainable development.

The author is vice-president and economics professor at Chengdu University, who specializes in China-Africa trade and investment. The views do not necessarily reflect those of China Daily.

 

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