On October 26, 2025, two major announcements out of the BRICS bloc signaled a new era for global finance and South-South cooperation. China and South Africa inked a landmark 2.1 billion yuan ($290 million) loan agreement—their first-ever financing project conducted entirely in Chinese yuan—while India and Brazil unveiled ambitious plans to expand trade, investment, and energy ties. Both moves reflect a broader effort among emerging economies to build alternatives to Western-dominated financial systems and reinforce their negotiating power amid turbulent global markets.
According to South China Morning Post, the China Development Bank (CDB) and the Development Bank of Southern Africa (DBSA) signed the yuan-denominated loan to fund development projects across Africa. The focus is wide-ranging: infrastructure, energy, manufacturing, and crucial social sectors like water management and education. Song Wei, a professor at Beijing Foreign Studies University, called the deal “strategically significant,” noting that yuan financing offers African economies a way to modernize “without the constraints of limited local budgets or volatile foreign exchange exposure.” Song also highlighted that the arrangement supports not only upgrades to South Africa’s infrastructure but also job creation and education initiatives that cross borders.
This deal is more than just a financial transaction. It marks a practical extension of the BRICS agenda to create lending alternatives outside the dollar-based system, a move that’s gaining traction as global trade faces increasing uncertainty. China’s renminbi (RMB) lending abroad has surged 35% this year to RMB3.4 trillion, according to official data. Several African nations—Kenya and Angola among them—have already restructured old dollar debts into yuan-based loans. Meanwhile, countries as far-flung as Indonesia and Slovenia are preparing to issue yuan-denominated bonds, underscoring the currency’s growing reach.
China’s influence in global trade finance is growing rapidly. Over the past three years, its share has more than tripled; nearly one in every 13 international trade deals is now settled in renminbi. The Cross-Border Interbank Payment System (CIPS), Beijing’s answer to Western clearing networks, processed more than RMB40 trillion in transactions per quarter in 2024, according to China Daily. This signals a rapid migration of financial flows away from traditional dollar channels, reshaping how money moves across borders.
For South Africa, this agreement is a chance to strengthen ties with Beijing while positioning itself as a testing ground for broader BRICS financial integration. If the experiment succeeds, it could serve as a model for other nations seeking access to development funding without relying on Western-led institutions. The broader implication? As the world’s economic gravity tilts ever so slightly east and south, the BRICS bloc is quietly but steadily building its own financial architecture.
Meanwhile, in New Delhi, India and Brazil are also making waves. As reported by This Week in Asia, the two countries announced plans to substantially expand their existing trade agreement with MERCOSUR—the South American economic bloc that includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay. Their goal: to boost bilateral trade from $12 billion in 2024 to $20 billion by 2030. The expansion will address both tariff and non-tariff issues, aiming to make trade smoother and more resilient to global shocks.
“This is a partnership of weight and complementarity. There is a reason to be together because their interests coincide, but it is also in the interest of humankind,” said Manjeev Puri, India’s former ambassador to the European Union, in comments to This Week in Asia. Both countries, he noted, are strong advocates for protecting the interests of developing nations in the Global South. Brazil, for instance, has championed issues like food security and health at multilateral forums such as BRICS and the G20, while India has provided digital infrastructure, humanitarian aid, and supported the African Union’s inclusion into the G20.
Brazil’s Vice President Geraldo Alckmin met with India’s Minister of Commerce and Industry Piyush Goyal, as well as Petroleum Minister Hardeep Singh Puri, to discuss new opportunities. “Was pleased to meet Geraldo Alckmin, Vice President and Minister of Development, Industry, Trade and Services of Brazil, during his visit to India. Our conversation focused on the expanding energy partnership between India and Brazil, from robust bilateral trade in hydrocarbons and long-term crude supply contracts with Petrobras to Indian investments worth over USD 3.5 billion in Brazil’s upstream sector, making it India’s largest investment destination in the Americas,” Puri said after the meeting. The talks also covered collaboration in exploration, offshore projects, and deepwater activities—areas with significant mutual potential.
But the relationship isn’t just about oil and trade. Brazilian aerospace giant Embraer has inaugurated its office in Delhi, aiming to deepen its presence in India’s commercial aviation sector. Embraer aircraft are already used by the Indian Air Force and commercial airline Star Air, and the new office signals a push for even greater cooperation in aviation.
On the defense front, Alckmin also met with India’s Defence Minister Rajnath Singh, alongside Brazilian Defence Minister Jose Mucio Monteiro Filho. The leaders reviewed the entire range of multifaceted relations, including military-to-military and defense industrial cooperation, joint exercises, training visits, and the possibility of co-developing and co-producing defense equipment. “The leaders reviewed the progress of ongoing defense-related initiatives and identified priority areas for joint work, including exploring opportunities for co-development and co-production of defense equipment,” India’s Ministry of Defence noted in a statement.
Analysts say the timing of these moves is no coincidence. As the United States has raised tariffs on imports—China, for its part, hiked duties on U.S. goods to 125% effective April 12, 2025—developing economies are looking for ways to shield themselves from trade disruptions and currency volatility. Morgan Stanley has even predicted that the U.S. dollar could weaken significantly by mid-2026, potentially dropping to 91 on the Dollar Index. With mortgage rates in the U.S. dropping to their lowest point in over a year and gold prices experiencing their steepest single-day drop since 2013, the global financial landscape is anything but stable.
China is also taking bold steps at home. On November 8, 2025, Beijing unveiled a major stimulus plan, giving local governments the green light to issue an additional $827.7 billion in bonds over the next three years. This move is designed to address rising “hidden debt” and shore up the country’s economic foundations. Meanwhile, China’s central bank is working to strengthen capital markets, enabling financial institutions to secure liquidity for stock purchases using their existing holdings as collateral.
All told, these parallel developments underscore a growing confidence among BRICS nations to chart their own course. Whether through yuan-based lending, expanded trade agreements, or defense and energy partnerships, these emerging economies are building the scaffolding for a more multipolar world—one where the rules of the game are being rewritten, not just by Washington or Brussels, but by Beijing, New Delhi, Pretoria, and Brasília.
As 2025 draws to a close, the world is watching closely. The actions of China, South Africa, India, and Brazil are not just about numbers on a balance sheet—they’re about who gets to shape the future of global finance, trade, and cooperation in the decades to come.
