The United Arab Emirates is looking for increased trade with China to become one of the global players. Both countries are trying to increase their cooperation by indulging in bilateral investments and cooperation to grow their presence in the Pacific Islands and Africa.
The report further says that trade between the two countries will be done in the Chinese yuan. This will allow the Middle Eastern countries to grant China a passageway of influence in the region. Due to this, there should be a shift in the global power balance away from Western dominance.
China and UAE – BRICS development efforts
Throughout the year, the BRICS alliance has had a high prevalence, which has highly developed the geopolitical sector. The block has seen its de-dollarization plans begin to take hold on a global level. In addition, it conducted its very first expansion plan during its annual summit in 2023.
At the moment, one of the nations in the expansion is attempting to increase its global reputation. To be specific, the BRICS members China and UAE are seeking an increase in bilateral trade in local currencies. Moreover, the former is seeking an increase in its global role through investments.
The UAE was one among five countries that were set to join the economic alliance at the end of the year. Specifically, it is set to join Saudi Arabia, Iran, Egypt, and Ethiopia as the newest BRICS members. The members are set to join forces to increase their presence in African nations. The UAE is also set to grow its all-round use of the yuan.
If, by chance, there would be an increase in local currency, which was a result of increased cooperation then it would certainly aid the blocs’ overall mission. Since early this year, the economy has been open about its de-dollarization hopes. Therefore, this would bring them to the multiplicity they have consistently sought.
Is de-dollarization possible in the future?
BRICS has also made headlines this year based on various events that have made it possible to increase their efforts to reduce the US Dollar’s power. The global players, specifically nations including China, are poised to edify their cooperation through bilateral investments.
The corporations have been under pressure. The major idea of including the UAE is granting a quest of the region’s in the Middle Eastern parts. BRICS intends to shift the currency power dynamics and ultimately drift the global market power away from the dollar.
Investing in BRICS is China’s real goal, and its prevalence has seen an alliance of various developments. The pile of new geopolitical plans has seen the bloc taking hold of the global level.
These ideas were realized during the summit in 2023, which is also conducted annually. China and the UAE seek to play major roles in bilateral trade location currencies. Investments made in both regions seek to overthrow the dollar from the top position.
Regardless, the US dollar is still showing strong resistance to these efforts as it still has its price tagged at a higher level. Still, the major currency has been used by other countries in local and international exchanges and this will take time to change into new currencies developed by the BRICS.
De-dollarization efforts will rely on the success of the listed digital currencies, including China’s digital yuan, in securing local and international trade. This will push its application, in turn reducing the strength of the US Dollar. Will it be possible to shift to the US Dollar power in favor of the BRICS currency? More on this will be discovered in the coming year.