XI Visit Bank of Brics and reinforces Chinese support to multilateral financial institutions

China’s president, Xi Jinping, held on Tuesday, 29, a visit to the headquarters of the Novo Development Bank (NDB) in Shanghai. The information was released by Chinese state agency Xinhua.

The institution, created in 2014 by the countries that make up the BRICS group – Brazil, Russia, India, China and South Africa – aims to fund infrastructure and sustainable development projects.

During the visit, Xi Jinping met with Dilma Rousseff, current president of the NDB. Named in 2023 by nomination of the Brazilian government, Rousseff was recently reappointed to office. The meeting represented a public demonstration of the Chinese government in favor of the bank’s continuity and expansion.

The Foundation of the NDB aimed to present an alternative to traditional international financial bodies, such as the International Monetary Fund (IMF) and the World Bank, which are often pointed out by experts as dominated by developed countries. The bank’s headquarters is located in Shanghai, China’s largest financial center.

Xi Jinping’s visit occurs amid a movement of approximation between Global South countries, which seek to strengthen their own mechanisms for financing and cooperation.

According to diplomatic sources, the presence of the Chinese head of state at the institution’s headquarters is interpreted as a demonstration of support for Dilma Rousseff’s leadership at the bank and a political support signaling to NDB’s performance in the international scenario.

Since assuming the presidency of the institution, Rousseff has conducted initiatives aimed at diversification of the bank’s members. During its management, the NDB admitted countries such as Bangladesh, Egypt and the United Arab Emirates.

The expansion of the associates has been accompanied by changes in the entity’s financing policy, focusing on projects related to energy transition and social development.

The NDB operation model differs from traditional multilateral organisms by not imposing rigid political-economic conditionalities on mutual countries. According to analysts, this feature has contributed to the interest of new economies in integrating the institution and accessing its resources.

The meeting between Xi Jinping and Dilma Rousseff took place amid discussions about the role of BRICS in the reconfiguration of global economic governance.

According to Xinhua, the Chinese president reiterated the need for emerging countries to strengthen their own institutions and to promote a more representative international financial order.

“President Xi Jinping reaffirmed his commitment to South-South cooperation and the strengthening of structures created by developing countries,” Chinese state agency said.

China’s support for Dilma Rousseff’s management has been considered strategic within the block. The performance of the former Brazilian president in the bank’s command is observed by representatives of member countries as a factor of institutional continuity and political articulation within the emerging economies.

Recent NDB reports point to an increase in the volume of financing granted to projects focused on green infrastructure, especially clean energy initiatives, sustainable urban mobility and climate adaptation.

The data also indicate a broader geographical distribution of operations, with increasing presence in non -founding countries of the institution.

NDB has also expanded its performance in international forums. In recent statements, representatives of the entity highlighted the objective of consolidating the bank as a relevant instrument for the financing of development in a global context marked by structural inequalities and credit restrictions.

The meeting in Shanghai takes place at a time of reorganization of international economic alliances. Inside the BRICS, discussions on greater financial and commercial integration among members have gained prominence, including proposals for the creation of their own payment mechanisms and for the use of local bilateral transactions.

Dilma Rousseff has participated in this discussions in multilateral meetings promoted by the block. According to sources close to the bank, current management works in strategies to increase the institution’s fundraising capacity with new international markets and partners.

President XI Jinping’s visit is considered by international observers as a statement of China’s affirmation in supporting financial initiatives led by emerging countries.

The gesture occurs in parallel to the growing interest of other developing nations in joining the NDB, in view of the search for alternatives to traditional international credit structures.

Since its foundation, the Novo Development Bank has approved more than 90 projects, with investments of over US $ 30 billion. The contemplated areas include infrastructure, energy, transportation, sanitation and digital modernization.

The presence of the Chinese president at the NDB headquarters marks a symbolic moment for the institution and reinforces expectations around his relevant actor in the financing of public policies on a global scale.