A big change is being witnessed in the global economy. In response to America’s new tariff policies and economic pressure, countries like India and China are now coming together and making new strategies. In the recently held SCO (Shanghai Cooperation Organization) summit, India, China and Russia have together made a plan that can challenge America’s economic power.
In the SCO summit, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and Russian President Vladimir Putin shared the stage together. During this, the three countries decided to forget their mutual disputes and make a new beginning. In particular, these countries resolved to unite to respond to America’s economic policies.
Challenge to the power of the dollar
The US has long been pressuring the world through its financial system, such as the SWIFT payment system. According to Stanford University professor Matteo Mazziori, the US uses its financial power to put pressure on other countries. But now countries like India and China are working towards changing this system. Mazziori says that if an alternative payment system is created, which can handle even 10% of global transactions, then it can become a big option for small countries.
India’s growing power
India is playing an important role in this change. In recent years, India has increased oil imports from Russia and has made digital payment UPI popular not only in the country but also in neighboring countries. According to Mazziori, mechanisms like UPI can become an attractive option for those countries which have been excluded from the Western financial system. However, India still needs to become stronger.
Impact of US policies
America’s tariff policies and economic sanctions have forced the world to unite. Mazziori says that till now America has maintained its strength by making deals with different countries because the rest of the countries were not able to respond unitedly. But now the alliance of countries like India, China and Russia can change this situation.
