India and Brazil oppose China's rapid expansion bid for BRICS group

India and Brazil are pushing back against a Chinese attempt aimed at swiftly expanding the BRICS group of emerging markets, with the intention of bolstering its political influence and countering the US, officials with knowledge of the matter said.

In the lead-up discussions for an upcoming summit in Johannesburg next month, where Brazil, Russia, India, China, and South Africa will convene, the countries have voiced objections to China’s repeated lobbying for the inclusion of Indonesia and Saudi Arabia in the group.

China has persistently sought expansion during these preparatory meetings, the officials said requesting anonymity.

Dozens of other nations are also clamouring to join the alliance, fuelling Western concerns the group is moving to become a counterweight to the United States and the European Union.

Brazil wants to avoid expansion partly because of these worries, while India wants strict rules on how and when other nations could move closer to the group, without formally expanding it. Any decision will require consensus among the members who will meet Aug. 22-24.

India and Brazil want to use the summit to discuss potentially bringing in additional countries with observer status, the officials said. South Africa supports discussing different membership options to accommodate this, but doesn’t necessarily oppose expansion, two of the officials said.

China’s foreign ministry stated that the BRICS leaders’ meeting last year had authorized the expansion of membership, emphasizing that the addition of more members is the political consensus among the five BRICS countries.

The upcoming summit aims to demonstrate the bloc’s aspirations to establish itself as a significant political and economic force. Although the group has discussed the potential establishment of a common currency, substantial progress toward that goal is not anticipated.

The timing of the summit coincides with heightened tensions between Washington and Beijing, and South Africa’s concerns regarding Russian President Vladimir Putin’s attendance. To avoid executing an International Criminal Court arrest warrant for him, President Putin will participate virtually.

BRICS members have refrained from joining the likes of the Group of Seven in blaming and sanctioning Russia over its invasion of Ukraine. However, the New Development Bank established by BRICS has frozen Russian projects, and Moscow has been unable to access dollars through the bloc’s shared foreign currency system.

Regarding expanding BRICS, Russia does not hold a firm position, according to Fyodor Lukyanov, head of the Council on Foreign and Defense Policy, which advises the Kremlin. Russia is broadly in favour of expansion but without excessive enthusiasm, and it won’t impede any decision taken by the group.

Formed officially in 2009-2010, the bloc has faced challenges in achieving geopolitical influence commensurate with its collective economic reach. The current BRICS members represent over 42% of the world’s population and account for 23% of global gross domestic product and 18% of trade.

Draft rules for admission to the group have been prepared after India expressed opposition to China’s push for expansion, according to two Indian officials. These guidelines are expected to be discussed and adopted during the upcoming leader’s summit.

India suggests that if BRICS intends to expand, it should consider emerging economies and democracies like Argentina and Nigeria, rather than Saudi Arabia with its dynastic and autocratic rule.

Joining BRICS would support Crown Prince Mohammed’s efforts to diversify his nation’s economy, which has brought Saudi Arabia closer to Russia and China in recent years. China is the kingdom’s top oil customer, while relations with Russia are essential for the OPEC+ alliance.

Brazil is working discreetly to avoid direct confrontation within the BRICS bloc and is resisting China’s pressure to turn it into an antagonistic body challenging the G7. China has consistently reiterated the request for expansion during all preparatory meetings, including virtual ones held last week.

Brazil’s proposal is to introduce “observer” and “partner country” categories for new nations, allowing them to progress through these stages before being considered for full membership. Brazil is supportive of Indonesia’s initiation of this process.