Far from being a mere slip of the tongue, the episode revealed the extent to which BRICS have established themselves as increasingly influential players in international politics and economics. The fear aroused by those words was no accident; it reflected the growing perception that this bloc represents a direct challenge to the established international order.

The informal BRICS alliance was formed in 2009, when several emerging economies decided to coordinate their efforts to strengthen their financial, economic, and political cooperation. Brazil, Russia, India, and China formed the group, which was joined by South Africa in 2010. Since then, the bloc has steadily increased its influence, becoming a central player in the international system. It currently represents about 50% of the world’s population and approximately 40% of global GDP in terms of purchasing power parity.

Today, BRICS is once again at the center of global debate. For those who failed to understand the significance of Trump’s words, or the reasons for the nervousness they provoked, it is essential to pause and analyze exactly what this organization is and why its rise is generating growing concerns about the international balance of power. The question, in this context, is inevitable: why is this institution attracting so much attention today?

After the end of World War II, the United States and the major Western democracies promoted a framework of rules, institutions, and relationships that is now known as the “liberal international order.” This system was based on liberal principles—both political and economic—and cooperation among states through multilateral organizations designed to ensure stability, growth, and collective security.

However, with the dissolution of the Soviet Union and the collapse of the bipolar system, the international scene underwent a profound transformation. Washington emerged as the sole global superpower, a situation that led Francis Fukuyama to formulate his thesis of the “end of history.”

Over the last few decades, Uncle Sam has maintained its hegemony through the liberal international order, relying on political and military alliances, shared norms, and universalist values, with institutions such as NATO and the IMF serving as fundamental pillars. This framework has guaranteed the hegemony of the dollar and its so-called “exorbitant privilege,” which has allowed the United States to borrow on more favorable terms than any other country, finance its deficits without immediate risk, and consolidate its debt as the safest asset in the global financial system.

To fully understand this analysis, it is essential to add another key element of the Western system’s success: the SWIFT network. This global payment infrastructure connects most of the world’s banks and acts as an intermediary in international transfers, the vast majority of which are conducted in dollars. In this way, the dollar has become the dominant currency worldwide. However, despite its power and influence, the liberal international order is beginning to show increasingly evident cracks.

Over time, a series of events have contributed to weakening this system. The financial crises of recent decades have undermined confidence in Western elites’ ability to manage the global economic order, while the U.S. strategy of shaping the world according to its own interests has fostered a coalition of states that reject its hegemony. Similarly, specific episodes such as Brexit in 2016, President Obama’s blockade of the WTO Appellate Body—considered the guardian of free trade—and Donald Trump’s return to the White House have intensified doubts about the soundness and legitimacy of this system.

Added to this context is the use of the dollar as a tool of political pressure, particularly visible in the sanctions imposed on Russia, a move that has reinforced the perception that the U.S. currency also functions as a geopolitical instrument.

This set of factors has led many powers to seek alternatives that reduce their dependence on the system dominated by the U.S. In this scenario of a weakening liberal international order, recent moves by BRICS are perceived as a direct threat to Washington, once again placing the bloc at the center of global debate.

As already noted, the BRICS is an informal intergovernmental organization whose main objective is to increase its global influence and offer alternatives to Western-dominated institutions. Since its creation, the bloc has progressively expanded its reach and sought to reduce its dependence on the U.S.-led international financial system.

A key step in this strategy was the 2014 creation of the New Development Bank, aimed at financing development projects in emerging economies, as well as the Contingent Reserve Arrangement, a $100 billion fund designed to protect member countries from financial crises. These initiatives are perceived as direct challenges to the World Bank and the International Monetary Fund, essential pillars of the liberal international order.

Added to this institutional progress is the growing economic weight of the bloc. BRICS countries have established themselves as one of the main drivers of global growth, accounting for a significant share of industrial production and strategic resources.

It is in this context that BRICS found an historic opportunity to challenge the rules of the international economic game. In addition to developing their own institutions, in 2018 BRICS introduced a new international payment mechanism called “NIPS,” later known as BRICS Pay. Although the project progressed slowly for several years, it regained prominence in October 2024 during the 16th BRICS Summit, held that same year. On this occasion, the member countries formally presented and endorsed what was now called BRICS Pay.

BRICS Pay aims to facilitate international transactions in local currencies and reduce the centrality of the dollar. The system would rely on DCMS, a decentralized messaging network developed in Russia and distributed among member countries, allowing each state to control its own financial infrastructure and trade without using the dollar, thereby weakening its dominance. At the same time, the absence of a hegemonic actor within the system aims to foster more balanced cooperation and potentially reduce geopolitical tensions.

This project represents a direct challenge to both the United States and the SWIFT system and, by extension, to the liberal international order. If BRICS countries succeed in consolidating the success of BRICS Pay in the future, we could be witnessing a notable change in the world order as we know it today.

However, significant obstacles remain between ambition and reality. Although an initial prototype of BRICS Pay has been presented in Moscow, and it has been suggested that it could be operational by 2026, the path to a fully functional system is complex. The experience of the European Union shows that financial integration requires time, coordination, and a high degree of economic convergence.

Furthermore, BRICS countries have profound differences in their levels of development, monetary policies, and strategic priorities, which makes it difficult to build a stable and cohesive framework. Similarly, despite their growing economic weight, their global political influence remains limited and, for the time being, it is insufficient to displace Western primacy.

Even so, the bloc’s rapid rise in a brief time has altered the international balance and raised fundamental questions about the future of the global system. The central question is whether BRICS countries will succeed in consolidating themselves as a real alternative to the liberal order led by the United States or whether their challenge will remain, at least for now, a symptom of an increasingly fragmented and multipolar world.

Ana Lorenzo López is a geopolitical analyst currently collaborating with The Political Room, where she writes in-depth political and strategic analysis on international affairs. Views expressed in this article are the author’s own. 

BRICS: The Emerging Bloc That Threatens the Liberal International Order was originally published on Global Security Review.

In this complex environment, world leaders are facing sanctions, isolation, and strategic setbacks that send a clear message—the long peace may soon end. Whether China’s supreme leader, Xi Jinping, will play a positive or divisive role in the future is uncertain.

It is certain that China seeks to move from the role of “model student” to that of leader, all despite depending heavily on Western markets and technology. The United States and the European Union remain China’s largest trading partners and any disruption in these relationships could push its economy toward stagnation. How China’s ambitious transition addresses major paradoxes and limitations in three key areas deserves further discussion.

The Alliance Paradox 

At first glance, dissatisfied countries may appear a united front against the West, with China, Russia, North Korea, Iran, and, to some extent, India in alignment. A closer look shows deep-rooted tensions. Russia inherited the legacy of empire and finds it difficult to accept a subordinate role to China. While Moscow relies on Beijing’s support in Ukraine, China’s growing economic and security influence in Central Asia and the Caucasus is seen as a direct threat.

India, another key player, sits with China in forums like BRICS, but remains a strategic rival. Border disputes in the Himalayas, competition for influence in the Indian Ocean, and strong ties with the United States and the West prevent any real constructive partnership between the two Asian powers.

Iran and North Korea also face serious internal and international constraints. Iran struggles with deep domestic cleavages, while North Korea remains unpredictable, at times even complicating China’s strategic plans. On a broader level, there is no shared set of values among these countries; their primary connection is opposition to the West.

As Henry Kissinger noted, such alliances often reflect disorder rather than creating a new order. This coalition is more capable of disrupting the existing system than building a replacement. None of its members, individually or collectively, possesses the institutions or tools required to reshape global order.

Xi Jinping’s presence alongside this coalition primarily serves as a symbolic display, signaling dissatisfaction, demonstrating power, and marking the end of a unipolar world. But this performance does not equate to practical ability to establish a new order. While China wields significant economic power, it lacks the instruments to replace the West in security and international politics; it has no NATO-like network, no universally trusted currency, and no capacity to reshape international legal institutions to its advantage.

The Contradiction between Experience and Ambition 

One of China’s main challenges is its lack of practical experience in major global tests. Since World War I, China has not been involved in any large-scale wars and has not faced a real-world military crisis. This gap highlights China’s inexperience in handling major international conflicts. Even considering Russia, with its weakened military and struggling economy, and Iran, facing deep domestic and regional crises, the pillars of this alliance do not appear particularly strong.

Ambition without experience, combined with an alliance lacking shared values, risks creating instability rather than a new order. This coalition sends an important message to the West, especially the United States: global dissatisfaction with American hegemony is real and even temporary alliances can exert significant pressure on energy markets, financial systems, and peace negotiations. China and its partners, despite their fundamental weaknesses, can disrupt Western calculations across many regions—a capability that should not be underestimated.

At the same time, China’s lack of hands-on experience in managing major military and economic crises leaves its foreign policy vulnerable to miscalculation. Ambition without real-world testing can thus be both an opportunity and a threat to regional and global stability. Moreover, global leadership is not possible by economic or military power alone; it also requires a compelling culture and a large consumer base capable of attracting goods, technology, and lifestyles from other countries. The United States built its hegemony precisely on these foundations. China possesses none of these.

Message to the World and the West

Xi Jinping’s alignment with countries opposing the existing global order sends a dual message to the world. First, it signals widespread dissatisfaction with the current system. This shows the world, particularly the West, that the liberal international order is no longer uncontested and that the hegemony of the United States faces a challenge. Second, it exposes the weaknesses and contradictions within the anti-Western coalition. The alliance lacks the intellectual, institutional, and operational foundations needed to create a new order. Internal divisions and the absence of security and political tools indicate that China and its partners, at least in the short term, cannot replace the existing global order.

Nevertheless, China’s stance against the liberal international order marks a new phase in global politics—one that may not produce a new order but could intensify instability and geopolitical complexity. Henry Kissinger even considered such disorder a threat greater than war. This situation shows that China is simultaneously trying to display power, secure advantages, and strengthen its global position, yet it still faces significant constraints and challenges on the path to genuine global leadership.

Conclusion

China’s transition from the “model student” to “global leader” faces three key obstacles. First is the alliance paradox in which coalitions of dissatisfied countries reflect disorder more than they create new order. Second is the gap between experience and ambition in which ambition without major practical tests leaves China vulnerable and its foreign policy prone to miscalculations. Third is the alliance/coalition’s message to the world, where China loudly signals its dissatisfaction with the current order but has no attractive alternative to offer. In other words, China seeks a larger share of the global order, yet it lacks the capacity to host it.

Today, the world is entering a new phase—one that may not produce a new order but will likely heighten instability and geopolitical complexity. In this environment, conflict remains the most probable scenario.

 Dawood Tanin is a researcher, freelance writer, and professor of political science at a private university in Afghanistan. Views expressed in this article are the author’s own. 

What Does Xi Jinping’s Engagement in Conflicts Reveal to the World? was originally published on Global Security Review.

These domains and areas are being weaponized for strategic purposes, as adversaries target cross-domain North Atlantic Treaty Organization (NATO) interests with the intent of weakening the Western security architecture and fragmenting alliance cohesion. The Trump administration must work closely with NATO allies to confront the many challenges that face them.

Strategic challenges, such as the Arctic, deep sea, and space, and the threats they pose require improved joint military readiness, enhanced deterrence by denial capabilities, and improved intelligence, surveillance, and reconnaissance.

“Over the last 15 years,” writes Scott Savits, “the Arctic has become a renewed theatre of military competition…. [T]op Russian officials have referred to the Arctic as Russia’s ‘Mecca,’ and a large fraction of Russia’s economy is based on Arctic fossil fuels and minerals.” Frustrating Russian efforts to gain a strategic advantage in the Arctic is of paramount importance to NATO’s deterrence mission.

Russia gaining an advantage in the Arctic will enhance its ability to establish escalation dominance against NATO in the event of a conflict with the alliance. Deterring Russia from broadening the scope of conflict, by threatening NATO’s vital interests in the Arctic, remains critical in dissuading other adversaries, such as China, from seeking to gain similar advantage.

With China developing and deploying new detection technologies in anti-submarine warfare, American nuclear submarine capabilities are becoming increasingly vulnerable to detection and targeting. China’s “Death Star” satellite claims to possess detection capabilities that renders the ocean transparent for up to 500 meters beneath the surface, putting American submarines at risk.

In the space domain, it is estimated that loss of access to space would come at a cost of roughly One billion pounds per day to the British economy. The reported deployment of Russian anti-satellite weapons systems (ASAT) in space are clearly coercive moves designed to threaten NATO’s space assets.

Russia’s weaponization of space is especially concerning as NATO depends on space to conduct an array of operations across the spectrum of deterrence and defence. Most notably, NATO airpower relies on space-based and space-dependent systems to fulfil a series of critical security functions. Leveraging robust deterrence capabilities in orbit, through targeting Russian and Chinese space-based military and non-military assets, is critical to securing NATO’s vital interests in space.

Beyond seeking strategic advantage, China is also expanding and modernising its nuclear arsenal at an unprecedented rate since the end of the Cold War. The Pentagon forecasts that China will be a nuclear peer of the United States by 2035. The latest figures published by the Federation of American Scientists show that China now possesses at least 500 operationally deployed nuclear weapons—up 43 percent from 2020.

Russian President Vladimir Putin continues to undermine international norms by persisting in threats to use battlefield nuclear weapons in Ukraine. Russia also deploys dual-use satellite technologies in space, capable of carrying nuclear warheads into orbit, in direct contravention of long-standing international treaties such as the Outer Space Treaty (1967), which prohibits the weaponization and nuclearization of space.

Meanwhile, Iran, a latent nuclear state, coerces the West by threatening the weaponization of its nuclear program. Iran also infiltrated the West by creating extremist networks through community centers, laundering money in major European and American cities that is used by criminal gangs to plot and execute terrorist attacks.

Proxies supported by Iran, such as Hamas and Hezbollah, can also launch increasingly devastating attacks. Furthermore, attacks like October 7, 2024, or September 11, 2001, do not warrant nuclear retaliation. A nuclear response to a terrorist attack, depending on the attack, is likely a disproportionate response.

China and Russia also engage in subversive activities within the cyber domain, sowing discord by using disinformation, intellectual property theft, and malign interference to destabilize NATO member states. Cyberattacks on critical national infrastructure can also inflict severe levels of damage. The appropriateness of cross-domain responses is yet to be decided.

The cyber attacks against Estonia in 2007, which lasted for 22 days, did not result in the triggering of NATO’s Article 5 collective defense clause. Yet, it was an attack on a NATO member state. The character of the attack complicated the process by which a viable and appropriate retaliatory response could be devised. In a multidomain threat landscape, hostile state actors conducting their operations in the grey zone can claim plausible deniability.

China, Iran, Russia, and North Korea also hold joint exercises, share intelligence, exchange military capabilities, and share a diplomatic and political kinship. This axis of Western adversaries shares the same geopolitical and economic objectives. They seek to replace the international rules-based order and establish alternative institutional frameworks to global order that undermine concepts such as democracy, human rights, rule of law, and national sovereignty.

Militarily, nowhere is this more apparent than in Russia, where Iranian drones and North Korean soldiers were provided to aid Putin’s war in Ukraine. Politically, emerging international blocs such as the BRICS demonstrate the extent to which countries like China and Russia are gaining traction in driving alternatives to the current order.

“As hybrid threats evolve to encompass the whole of digital and networked societies,” wrote Sean Monaghan, “so too will the capabilities required to deter them. A more complex threat environment will make predicting attacks and vulnerabilities more difficult, so nations may rely more on resilience.”

Hence, for deterrence to be effective today, credibility must incorporate more than hard power capabilities. Red lines must be communicated effectively across different channels. Resolve must be demonstrated through a force posture that includes a willingness to establish escalation dominance in a crisis scenario. The art of deterrence is also about determining and holding at risk what an adversary values.

As the outgoing US Secretary of Defence General (Ret.) Lloyd Austin said in 2022, cross-domain deterrence “is the right mix of technology, operational concepts, and capabilities—all woven together and networked in a way that is credible, flexible and so formidable that it will give any adversary pause…. [It is] multidomain, spans numerous geographic areas of responsibility, is united with allies and partners, and is fortified by all instruments of national power.”

Ultimately, deterrence is about credibly threatening to impose unacceptable costs, by denial or punishment, on a would-be aggressor. Those costs must convince the would-be aggressor that they outweigh any potential gains made.

Therefore, it is imperative for the US and NATO to increase cross-domain capabilities to match those of adversaries. Adopting a combination of different violent and non-violent means, to conduct deterrence credibly across multiple domains and at various levels of intensity, will enhance NATO’s ability to secure its vital interests in an increasingly volatile era of global strategic competition.

Alex Alfirraz Scheers holds a diploma in Politics and History from the Open University, a bachelor’s degree in War Studies and History from King’s College London, and a master’s degree in National Security Studies from King’s College London. He has held research positions at the Henry Jackson Society and the International Centre for the Study of Radicalisation, and his articles have been published in the Diplomat, Times of Israel, RealClearDefense, and the Royal United Services Institute. Views expressed in this article are the author’s own. 

Deterrence and NATO’s Emerging Security Environment was originally published on Global Security Review.

One example of this malfeasance was the repeated use of the term fascism/fascist or Nazism/Nazi to refer to Donald J. Trump and his supporters. Among those raising this concern were disaffected officials from the first Trump presidency. For example, retired four-star general John F. Kelly, who served as Trump’s White House chief of staff, caught media attention by going public with warnings that Trump would try to govern as a dictator.

In addition, thirteen republicans who served in the first Trump administration released an open letter on October 25 charging that Trump’s disdain for the professional military and his admiration for autocrats would be dangerous for America. They contended, “The American people deserve a leader who won’t threaten to turn armed troops against them, won’t put his quest for power above their needs, and doesn’t idealize the likes of Adolf Hitler.”

The widespread use of the fascist moniker by Trump opponents, as well as the identification of Trump as an admirer of Hitler, substitutes emotional frustration for a nuanced appreciation of history and policy. This is so for at least two reasons.

First, the Nazi and fascist ideologies of the 1920s and 1930s cannot be replicated in 21st- century America. There are too many checks and balances in the American system of government to permit a fascist dictatorship or a similarly authoritarian system from taking root in the United States.

The geniuses who designed the American system of government dispersed power among three branches of the federal government and divided powers between the federal government and the states for a reason. The priority of values in the American political system favors liberty over efficiency. Admittedly the apparent inefficiency of government compared, say, to private business, is sometimes frustrating. But Americans instinctively mistrust centralized power as inimical to freedom, and history validates the prudence of that judgment.

Second, the character and training of the US professional officer corps would preclude the collaboration of the highest-ranking generals and admirals in subverting democracy. The graduates of American war colleges are steeped in the constitutional legitimacy that surrounds civil-military relations. An anti-democratic usurper demanding that the armed forces become partisan subordinates, as opposed to apolitical guardians of democracy, would meet with Pentagon resistance and, if necessary, refusal to carry out illegal orders.

Of course, complacency on the character of civil-military relations is never desirable; democracy must always be safeguarded against imminent dangers. But overstatement of American vulnerability to any single president or administration is distracting from more probable and immediate dangers and challenges.

First among these dangers is the relentless march of technology and its tendency to produce an elite of technocrats who exert indirect or direct control over public choice. When technocrats are in the private sector, they can influence public policy indirectly by leading successful corporations that make desirable consumer goods or other commodities.

On the other hand, when technocrats reside in government bureaucracies, their influence and power are not determined by market forces, but by law and government regulation. For most of the 20th century, the United States successfully balanced the creativity of the private business sector with the regulatory regimes of government bureaucracy. In the twenty-first century, this balance is at risk by bureaucracy in hyperdrive.

Aided by the explosion in new information technology, the federal bureaucracy now resembles Cheops’ pyramid and intrudes into every corner of American life. In turn, a more activist government is demanded by disgruntled interest groups or litigious citizens who take every grievance, real or imagined, into the local, state, or federal judicial system.

The result is a logjam of jurisprudential clutter and a never-ending cascade of regulations that dictate how Americans work, eat, sleep, drive, watch television, cook, and educate their children. A list of things that the government does not regulate would be harder to draw up than a list of things that the government controls directly or indirectly.

In short, mastery of advanced technology is a necessary condition for American national security and defense. On the other hand, technological micro-management of the American body politic can only depress innovation, discourage original thinking, and empower dysfunctional government controls over social and political life.

A second concern that both political parties need to address is the restructuring of the international political and economic system to the detriment of American leadership and security.  Russian President Vladimir Putin recently hosted a conclave of member states of BRICS (originally Brazil, Russia, India, China, and South Africa) plus some thirty other countries interested in joining or otherwise supporting the group. BRICS is explicitly designed to push back against the rules-based international order led by the US and its Western allies.

On the international security front, China, Russia, Iran, and North Korea (the CRINKs) are acting in concert as system disrupters in support of aggression in Europe, the Middle East, and East Asia. Iran and North Korea are providing explicit military assistance to Russia for its war against Ukraine, including ballistic missiles and drones.

North Korea has also begun sending troops to fight under Russian command in Ukraine.  China has moved into a more open military alliance with Russia, that includes joint war games and training exercises, including scenarios with forces that are potentially nuclear-capable.  Russia is confident that it can outlast Ukraine in manpower and war-related resources despite NATO support for Kiev. At the level of high diplomacy and statecraft, no recipe for a negotiated settlement of this war is on offer.

China continues to press forward its Belt and Road Initiative and other measures to dominate global trade and infrastructure development. As well, China apparently aspires to become a third global nuclear superpower, with forces essentially equivalent to those of the United States and Russia by 2035 or sooner.

A third concern that should occupy the attention of the next administration is the matrix of challenges to American and allied conventional and nuclear deterrence. Russia’s war against Ukraine, China’s gathering storm for a future strike against Taiwan, and Iran’s wars against Israel via proxies in Gaza, Lebanon, and Yemen, all point to a decline in respect for American power and a willingness to test American resolve by direct or indirect action.

In addition, Iran is already a threshold nuclear weapons state, and an Iranian bomb could set off a reaction among Middle Eastern countries that would make a serious dent in the nuclear nonproliferation regime. Iran’s Houthi proxies in Yemen have diverted maritime commerce throughout the world and have evolved from a fledgling insurgency into a well-armed terrorist strike force capable of ballistic missile and drone attacks throughout the region.

With respect to nuclear deterrence, the fate of the American strategic nuclear modernization program that was supported by the Obama, Trump, and Biden administrations is now uncertain as to its timing and continuing support from Congress. The intercontinental ballistic missile (ICBM) component (Sentinel) of the nuclear triad faces scrutiny over its rising costs and delayed schedules. The possible collapse of the New START regime in 2026 could presage an open-ended nuclear arms race among China, Russia, and the US.

Other challenges to nuclear deterrence stability include developments in hypersonic offensive weapons, in advanced missile and air defenses, and in space and cyber weapons for deterrence or defense. Kinetic attacks on US space-based assets and cyberattacks against both military and civilian targets can be acts of aggression in themselves; or, on the other hand, they can be precursors for nuclear first strikes or for large-scale conventional offensives against American and allied North Atlantic Treaty Organization (NATO) forces and infrastructure.

In short, (1) managing the balance between governmental and private-sector technology innovation; (2) steering the pivotal role of the United States in a more competitive international system; and (3) supporting credible conventional and nuclear deterrence against more ambitious regional actors and nuclear competitors provides a partial menu of priorities that should receive more attention from policymakers. Demagoguery’s day has passed. It is now time to govern for the betterment of the nation.

Stephen Cimbala, PhD, is a senior fellow at the National Institute for Deterrence Studies and Professor of Political Science at Penn State Brandywine.

The Wrong Agenda for Political Debates was originally published on Global Security Review.

Both sides subsequently took steps to militarize the border and there was talk in New Delhi of following a more aggressive policy towards the Chinese. It was quite a surprise, therefore, that before the 2024 BRICS (Brazil, Russia, India, China, and South Africa) summit at Kazan, India announced that it reached an agreement with the Chinese on how to patrol the border without clashes. Indian Prime Minister Narendra Modi and Chinese President Xi Jinping also had a bilateral meeting in Kazan. Several factors led to this turn of events.

The Indians knew for some time that to dislodge the Chinese from the positions they occupied in the Himalayas would lead to an expensive war where India would likely not succeed in achieving its objectives. The alternative was to negotiate a settlement on resuming patrolling along the border and move towards improving the relationship in other areas, as the Chinese had suggested, notably by increasing trade and foreign direct investment in India.

The first sign that a policy shift was taking place came when the Ministry of Finance’s publication, “The Economic Survey of India,” called for seeking Chinese foreign direct investment to boost the economy. Such a statement could only come with the approval of the prime minister’s office signaling a change in thinking in New Delhi. While India’s bureaucratic and military establishments wanted a hard line towards China and to move closer to the United States, India’s three major business houses—Ambani, Adani, and Tata—all wanted closer economic ties with the Chinese, as did others in the business community. China provides the necessary equipment for Indian industry as well as the much-needed middle managers for India’s bourgeoning high-tech industries.

Further, while the United States was engaged in discussions with India it could not provide anything concrete and meaningful to New Delhi. Foreign direct investment from the United States was not forthcoming in significant amounts. Militarily, Washington was not providing the high-tech weaponry that India badly needed—at least not without terms and conditions that India found onerous. On the other hand, India lacked the financial resources to pay for the more advanced technology it wanted.

In terms of the Quadrilateral Alliance (Australia, India, Japan, and the United States), the Indians were always the outliers since their military technology could not operate seamlessly with the American, Australia, and Japanese systems. Moreover, the Indians were cautious about the extent to which they wanted to aggravate the Chinese, worrying about Beijing’s potential to complicate the security environment in South Asia.

The budding bilateral alliance between Beijing and Moscow also worried New Delhi. Beijing and Moscow are moving towards a much closer political and economic relationship that is partly aimed at transforming the dollar-dominated international financial system.

Militarily, the emergence of closer military ties between China, Russia, Iran, and North Korea (CRINK) is worrying not only to the West but also to India since Russia is a major supplier of weaponry to India and New Delhi does not want to see this supply chain disrupted because Moscow decides to favor Beijing and reduces supplies to India.

Moreover, within BRICS there is a move towards accepting the Beijing-Moscow position on an alternative world order—the Law Based International Order—that while India accepts it, it is also concerned that it would be dominated by Beijing (and India would be shut out of framing the new narrative). All these reasons required mending fences with the Chinese.

Outcomes

             At the very least, this move is welcome because it is going to lead to a lowering of tensions along the border, which helps the internal position of the incumbent prime minister. Narendra Modi was weakened in the May-June 2024 general elections where his party went from having an absolute majority to being forced into a coalition with untrustworthy partners.

In such a situation, a bad military outcome along the border would severely weaken Modi’s internal standing and lead to calls for him to be replaced. Stabilizing the border, therefore, removes an irritant in domestic politics.

India needs foreign direct investment and despite all the talk from Tokyo and Western capitals, China is the most likely source of such financial resources. Chinese companies, despite the downturn in India-China relations, now control over 70 percent of the country’s cellphone market with companies like OnePlus, Redmi, Oppo, and Vivo outselling Apple, Samsung, and Sony.

Huawei and Hisense are making inroads in India’s white goods market while Chinese electric scooters (or ones powered by Chinese batteries) are becoming the ride of choice for young Indians. Paytm, the mobile payment service, has a Chinese majority share in its ownership and it is one of the leading players in the Indian market.

All of this has happened while relations between the two countries were sour. There is, therefore, considerable room for growth if the political climate between the two countries improves significantly. There is talk, in fact, that China may do a substantial foreign direct investment in India because, unlike Pakistan and Sri Lanka, there is less worry about nonperforming loans in India.

Some worry that the Indian rapprochement with China could have an adverse impact on US policy toward the Indo-Pacific and will give greater momentum to a BRICS-inspired move to de-dollarize the global economy. The Indians have a residual distrust of China and, therefore, are not going to bail out of Western-directed initiatives in the Indo-Pacific just because New Delhi is now the recipient of Chinese largesse.

Instead, India will encourage the development of Western-crafted institutions in the Indo-Pacific and participate in them particularly if they lead to economic growth. As far as de-dollarization is concerned, the Indians want to go to payments in one’s own currencies within BRICS but are not talking of displacing the dollar. In part, this is because the alternative could be the yuan or a Chinese-dominated BRICS currency.

The rapprochement between the two countries is good because it deescalates tensions and makes room for investment that India badly needs to reinvigorate its economy. At the same time, it does not shift India into the Chinese camp since New Delhi is a long way from trusting Beijing and entering into an anti-Western partnership with it. For the West, the best move is to wait and see, while remaining on good terms with India.

Amit Gupta is a Senior Advisor to the Forum of Federations Ottawa. The views in this article are his own.

Why India Made Up with China at the BRICS Summit was originally published on Global Security Review.

There are two ways to achieve the regime’s objectives. First, Iran can cross the nuclear threshold and turn the tables on the United States, Israel, and the Sunni Arab states. Second, Iran can continue engaging in conflict and terrorism via proxies.

This approach took shape with the 1983 Marine barracks bombing, which drove the US out of Lebanon. The United States and Israel’s current conflict with Iranian proxies is at best a strategic distraction that cost the lives of American troops and drains Israel of resources. Houthis militias not only disrupt 15–25 percent of global shipping, but they are also a vector for testing increasingly lethal weapons and tactics.

When recently fighting Islamist militias in Idlib, Syria, Iranian forces demonstrated the brand new Kheibar Shekan ballistic missile with a range of 1,450 kilometers (900 miles). This puts Israel within range, making the Iranian threat to “raze Tel Aviv and Haifa to the ground” even more explicit.

While the West is distracted by the persistence of proxy attacks, Iran’s laser-sharp focus on nuclear and ballistic missile capabilities continues to deliver results. As of early 2024, Iran is capable of Uranium enrichment above the 80 percent threshold, while it keeps growing its stockpile of Uranium enriched to 60 percent. Iran might not have yet mastered Uranium-metal machining and the implosion trigger, but it eventually will, albeit with a little bit of help from the enemies of the United States. It is not a question of if but when will Iran field a nuclear weapon.

Iran has long developed the largest and most diverse arsenal of ballistic missiles in the Middle East. It took nearly three decades for Europe to acknowledge that Iran’s ballistic missile capabilities were a growing threat. Western inability to deploy coercive nonproliferation tools that effectively compel Iran to cease and desist with its nuclear and ballistic missile programs demonstrates that efforts to deter Iran are an epic failure. It is in that context that Iran’s space launch vehicle programs provide a pathway toward longer-range ballistic missile systems, something not fundamentally different from North Korea’s approach.

The current American bombing campaign in retaliation for the attack on American troops in Jordan, while targeting proxies, does not change Iran’s tactical or strategic objectives. It is not a stretch to anticipate that Iran may consider a theater nuclear paradigm. For this to be adopted, Russian tutelage of Iran as to the utility of its nuclear doctrine is needed.

There remain several issues to consider. These include warhead miniaturization, mating with a Shahab 3 missile, and missile guidance, which require assistance from Russia, China, or North Korea. North Korea spent the past decade working on these very issues and is likely to share its knowledge for a price.

China relies heavily on Iran and Iran-controlled Iraq for its oil imports. Iran’s export of crude oil recently reached a 5-year high with China as the top buyer. Sanctions simply do not work. In addition to the expanded Brazil, Russia, India, China, South Africa (BRICS) and the Global South’s emerging alternative payment systems, which bypasses dollar-based control infrastructures, illegal weapons/technology proliferation continues unabated. While it is concerning that components used in Iranian missiles are reported to have made their way from the United States to Iran via China, the obvious question is what export-control designated items should never have made it out of the United States in the first place.

By staging a rapprochement between Iran and Saudi Arabia and accelerating the expansion of the BRICS to countries that are primarily oil and gas suppliers, China is further consolidating its energy security and its appeal as an alternative to the Western-led world order. Saudi Arabia, under the leadership of His Royal Highness Mohammed bin Salman Al Saud, maintains bridges with Iran while performing diplomatic damage control such as in Lebanon. This does not mean that Saudi Arabia will ultimately turn its back on the West. But by keeping its options open, Saudi Arabia’s smart diplomacy does not lose sight of its own strategic goals—leveraging any weight China already carries around the Middle East and globally.

In January 2024, a Qaem 100 rocket from the Aerospace Force of Iran’s Islamic Revolution Guards Corps, for the first time, launched a Soraya satellite to an altitude of 750 kilometers. Not long after this first success, a Simorgh (Phoenix) rocket launched 3 small satellites into orbit.  Iran’s missile program, under the guise of a space program, demonstrated significant breakthroughs just as Iran is on the brink of reaching its technical goals for its ballistic missile and nuclear weapons programs. As the West contemplates failed deterrence policies, the United States and other western nations must contemplate how much longer they can continue to fail without having to pay a price for their eroding regional and global leadership.

Iranian effort to reassert itself to regional hegemony after a long period of mediocrity will not go unchallenged by the Saudis (Sunni Arab) or Turks (Sunni Turkish). American preeminence in the region kept old animosity at bay but may not for much longer. We will all be worse off for it.

Christophe Bosquillon has over 30 years of international experience in general management, foreign direct investment, and private equity and fund management across various industries in Europe and the Pacific Basin. Views expressed in this article are the author’s own. 

Iran’s Quest for Middle East Hegemony was originally published on Global Security Review.