In a year marked by shifting alliances and the growing assertiveness of non-Western powers, two recent developments—Ethiopia’s deepening partnership with China and the landmark China–Russia Mutual Investment Protection Agreement (MIPA)—signal a profound transformation in the global economic and political landscape. These moves are not isolated; they are part of a broader trend toward multipolarity and the reimagining of international cooperation, challenging the dominance of Western-led institutions and offering new models for the Global South.
According to Fana Media Corporation, Ethiopia became the first African country to form an All-Weather Strategic Partnership with China, a milestone that both countries’ leaders describe as a testament to their strong political trust and expanding cooperation. Chinese Embassy Charge d’Affaires in Addis Ababa, Mr. Sun Mingxi, recently emphasized, “High-level state visits have been frequent over the past two years, and the mutual political trust continues to deepen.” He recalled Prime Minister Abiy Ahmed’s October 2023 visit to Beijing, where he and Chinese President Xi Jinping elevated the bilateral relationship. The momentum continued at the BRICS Summit in Rio de Janeiro in July 2025, where Prime Minister Abiy met with Chinese Premier Li Qiang to discuss economic, infrastructure, and digital collaboration.
This partnership is not just symbolic. Since July 2025, Ethiopia has welcomed delegations from China’s ministries of Industry and Telecommunication, Science and Technology, and the China International Development Cooperation Agency (CIDCA), among others. Mr. Sun described these visits as a “great opportunity for future cooperation,” highlighting the practical advancements already underway. The Xiamen–Addis–Sao Paulo cargo route, for example, has handled over $750 million in trade across nearly 600 flights, underscoring the tangible benefits of closer ties.
But Ethiopia’s engagement with China is also about its place in the world. Mr. Sun noted that Ethiopia’s recent membership in BRICS enhances its global profile and allows it to participate more actively in shaping global governance, particularly as a representative of the Global South. “We are looking forward to the early ratification of the convention to the International Organization for Mediation, so that Ethiopia could play a full role in this new organization,” he said, adding that Ethiopia has also been invited to join a proposed World Artificial Intelligence Cooperation Organization, an initiative spearheaded by China.
The collaboration between China and Ethiopia extends to multilateral platforms like the United Nations, BRICS, and the African Union. Here, the two countries advocate for economic globalization, free trade, and multilateralism, while opposing unilateralism, protectionism, and global conflicts. “Ethiopia enjoys a unique position in Africa, and its partnership with China continues to open opportunities for advancing trade, investment, infrastructure, and multilateral cooperation,” Mr. Sun remarked, underscoring the strategic significance of the All-Weather Strategic Partnership for Ethiopia’s regional and global influence.
Meanwhile, on a much larger geopolitical stage, the October 2025 ratification of the China–Russia Mutual Investment Protection Agreement (MIPA) by Russian President Vladimir Putin marks a decisive shift in international economic alliances. As detailed by Reuters and Kommersant, the MIPA is a robust legal framework designed to safeguard bilateral investments and deepen economic integration between the world’s two largest non-Western powers. This agreement comes amid renewed U.S. protectionism and an expanding sanctions regime, reflecting what analysts describe as a “strategic symbiosis” between China and Russia.
The MIPA introduces several protections familiar to Western investment treaties—national treatment, most-favored-nation status, and protection against expropriation—but it also includes unique features. Disputes will be settled via arbitration in neutral jurisdictions such as Singapore or Hong Kong, and the pact allows for strategic-sector exemptions to shield critical infrastructure and defense industries. One of the most striking elements is the promotion of local-currency financing through the yuan and ruble, bypassing the SWIFT network and reducing dependency on the U.S. dollar.
Central to the agreement is the establishment of a Joint Investment Protection Council (JIPC), which will monitor compliance and coordinate the activities of state-owned enterprises. A sovereign-risk insurance fund is also in place to cushion investors and both states against sanction-related vulnerabilities. According to China Daily, this institutional design blends familiar global investment norms with region-specific mechanisms tailored to strengthen strategic autonomy and economic security.
From a strategic perspective, the motivations for the MIPA are clear. For Russia, still reeling from Western sanctions imposed since 2014, the agreement offers access to alternative investment channels and technology partners, while ruble–yuan settlements enhance macroeconomic stability. For China, the pact secures upstream resource access, strengthens Belt and Road Initiative connectivity, and demonstrates leadership in reshaping global financial norms. Both countries see this institutionalized financial cooperation as a way to inoculate themselves against Western secondary sanctions and to project an alternative vision of globalization.
The impact of the MIPA extends far beyond China and Russia. Within the BRICS bloc, the agreement provides a legal prototype for future inter-bloc arrangements and strengthens financial cooperation. The BRICS New Development Bank and Contingent Reserve Arrangement already signal efforts to escape dollar dependency, and the Sino-Russian pact now extends these ambitions into bilateral investment protection. By 2025, BRICS had attracted more than 20 new applicants, from Indonesia to Saudi Arabia, as reported by Al Jazeera.
For the European Union, the MIPA creates economic and strategic anxieties. European corporations risk exclusion from Eurasian markets as China and Russia prioritize intra-bloc investment flows. The EU now faces the challenge of balancing strategic autonomy with transatlantic loyalty, as the world economy appears increasingly bifurcated. Meanwhile, for the United States, the MIPA undermines the effectiveness of its sanctions-based foreign policy tools, as the proliferation of such agreements reduces the reach of the dollar and the SWIFT system.
Perhaps most significantly, the MIPA offers a model for the Global South. Many developing economies, particularly in Africa, Latin America, and Southeast Asia, see the agreement as a framework that respects domestic policy autonomy while enabling pragmatic economic integration. Countries like Indonesia, Nigeria, and Brazil are reportedly exploring similar bilateral mechanisms with China, drawn by the MIPA’s emphasis on joint risk funds, currency swaps, and sovereign-risk guarantees.
What emerges from these developments is a new era of “strategic institutionalization,” where trust is engineered through legal frameworks and cooperation is anchored in mutual economic defense. The rapid growth in yuan–ruble transactions—rising from 15% in 2020 to nearly 90% by mid-2025, according to the Bank of Russia—underscores the shift toward what some analysts call “currency geopolitics.” The integration of Russian energy, Chinese finance, and Central Asian logistics is forming a de facto Eurasian bloc, with implications for global security, supply chains, and trade patterns.
As the world moves toward a more decentralized and polycentric order, these alliances are less about rejecting the West and more about redefining globalization on new terms. Ethiopia’s partnership with China and the China–Russia MIPA are not simply economic arrangements; they are blueprints for a future in which states choose their connections, defend their sovereignty, and recalibrate the balance of power. In this emerging landscape, cooperation is both a shield and a strategy, and the rules of the game are being rewritten before our eyes.
