Why is China considering to set up ‘BRICS innovation base’ on 5G?

China intended to establish a BRICS innovation base for strengthening the cooperation among the five-member country bloc including India in technical sectors like 5G, Artificial Intelligence, and digital economy, industry, and information technology.

Object points

• Consolidation of the cooperation among the members i.e. Brazil, Russia, India, China, and South Africa (BRICS).
• Promotion of sustainable economic and social development.
• A technological revolution in the field of Artificial intelligence, 5G, digital economy, that will develop the enterprises as well as promote the innovation capabilities.
• Strengthening of the industrial chain and supply chain to enhance the development process by creating a good development environment.

China’s personal interest

Following the clash between India and China in the LoC sector, India has been gradually shifting its course of the economy which is going to be less China dependent. That includes banning the operation of several Chinese companies like Tiktok, IPL sponsor VIVO, and Huawei, which created a new crisis for the Chinese telecom groups.

• China is trying to introduce Huawei internationally in the name of strengthening 5G technologies.
• It also has a keen desire to revive the hegemony in the sector of medical materials and the electronics material.

BRICS assistance to India

Shanghai-based New Development Bank (BRICS Development Bank), has granted a loan of 1 billion USD to India to combat the COVID-19 pandemic.

As stated by the bank, the ‘emergency assistance program loan’ was aimed at providing necessary support to Indian to fight against Covid-19 by ensuring social and economic needs.

Comment

The main thing that China is looking for is strengthening its economic position with the help of BRICS member countries and specially capturing the Indian telecom market to increase the dependency as well as gaining its superiority.

Month: Current Affairs - August, 2020