China Prepares for the 2012 BRICS Summit

in New Delhi, India

Chinese Delegation to2012 BRICS Summit

Delegation Members:

Barbie Bell Director-General Latin American Affairs

China Brazil Bilateral Meeting Report

Brenda Caldwell Director-General Policy Planning Department Rise of BRICS, PowerPoint

 

Dolores Haugen Director-General Asian Affairs, Foreign Ministry China India Bilateral Meeting Report, Introduction

 

Ann-Kristine Thrift Director-General European-Central Asian Affairs China Russia Bilateral Meeting Report, China’s Contributions

 

Sarah Van Horn Director-General African Affairs China South Africa Bilateral Meeting Report

BRICS Countries Statistics

Brazil, Russia, India, China and South Africao BRICS Countries make up approximately 40% of the world

population.o BRICS control 25.9% of the total geographic area of the world.o BRICS make up 25% of the global GDP.o BRICS currencies could appreciate by 300% by 2050.o BRICS holds 3.93 trillion in foreign reserves. o The rising middle class in these countries has increased their

purchasing power.o The GDP Growth rates for BRIC Countries are much higher than in

developed countries markets.o By 2050, three of the largest four economies will be from Asia.

Opportunities for BRICS Countries

High growth rates Increased foreign direct investment Investment in infrastructure Growing middle class boosts demand Large supply of educated cheap workforce High potential for supply of outsource work Domestic/global mergers/acquisitions Abundant agricultural/mineral resources Rapid expansion of commodity markets Business confidence Increaed employment

Challenges of BRICS Countries

Volatile markets Unstable economies Geographic locations where natural

disasters happen Export driven economies Weak infrastructure Energy concerns Shortage of skilled workers in certain areas Inflation Access to finance

Cultural Challenges of BRICS Countries

Hierarchy plays a part in government and business affairs

Community can take precedence over the individual

Society may not embrace the Internet and Technology which makes paper documents and archival storage important

Rise of BRICS

BRICS rose because of the change in world order. Multipolarity brought O’Neill’s coining of the term

BRIC and his prediction that they would become a powerful group.

The rise of the middle class helped the BRICS countries grow through increased incomes and increased spending.

BRICS countries grew in trade with each other and trade with the US.

More capitalists models for their economies have assisted these countries in stabilizing their economies, growing domestic companies and competing internationally.

CHINAKey Advantages Broad expansion of

educational achievement Rapid economic growth Resilience to global

economic problems Large country Well educated people Cheap workforce People have a tradition of

saving money

Challenges for the Futureo For China to be recognized as a

global power requires adherence to western norms

o State run enterprise.o Demographic shifts.o Complex foreign relations with

others in the world.o Export market problemso Urban unemployment riseo Fixed exchange rateo Government control

General Concerns of CHINA

Reform of the international monetary system Risks of cross-border capital flow to

emerging markets Macroeconomic policies for balanced growth

in the global economy Turmoil in the Middle East and Africa Diplomacy in issues in Lybia Commodity price fluctuations Reform of the World Bank Climate Change

The Global Economy Political developments in the World Trade Agreements Agriculture Health, Science and Technology Security Business and Industry

Agenda Talking Points and Policy Recommendations from China