A GROWING BRICS HAS ITS CONSEQUENCES

- What issue would you highlight from the cooperation between the French and the Chinese central bank?

- One way we cooperate closely with China is in the network of central banks for the greening of the financial system. We also work together in the framework of the Sustainable Finance Working Group of the G20. There are a lot of synergies there and we’re always very happy to work without Chinese counterparts on this. China is also very important for Europe’s green transition because it has many of the materials we need for that.

- In your opinion, how effectively is the internationalisation of the renminbi is proceeding?

- I think, for now, China does not want to internationaise the renminbi but is rather preparing all the necessary steps leading towards this goal. All these steps have not been used to their full potential yet. Without the liberalisation of the capital account there is no possibility to completely internationalise the renminbi, but there is definitely room for doing more than where we are now.

Professor

David Jones, University of Warsaw

- How do the Ukraine war and the subsequent sanctions change the dynamics of international cooperations?

- Both the conflict and sanctions complicate the dynamics of international cooperation. Conflict has inspired countries such as Finland and Sweden to scamper to join NATO, not in the best interests of these countries or of NATO, definitely anathema to the interests of the Russian Federation as perceived by Russian leadership.

- According to recent reports, 19 countries expressed an interest in joining the BRICS ahead of its annual summit. What conclusions can we draw from this development?

- Enthusiasm for joining BRICS is interesting, most are not European except Belarus already aligned with Russia. Brazil and Argentina are contentious similar to India and Pakistan, so one wonders how delighted Brazil is with Argentina joining, India is with Pakistan joining. From this development we can suspect China is less happy than Russia because it flies in the face of China’s “Belt and Road” initiative, benefitting Russian Federation more than China’s objectives.

- How do all these recent changes impact China’s role in world economy?

- In my judgment if so many countries join BRICS, actually this sets back China’s aim to become more dominant in trade and influence, simply because with a larger BRICS Bloc China becomes one of many members, not necessarily the leading nation. ■

The World Needs Another Major Financial Centre

Woo Wing Thye, Distinguished Professor of Economics, University of California, Davis