Jeffrey Sachs urges India‑China cooperation to counter US unilateralism

⚡ Key Financial Takeaways

Sachs believes India‑China cooperation would signal resistance to US claims of unipolar dominance.

He criticises the US use of the dollar in foreign policy and urges BRICS to settle trade in local currencies.

Sachs calls on BRICS to take a clear position on the West Asian conflict, including reopening the Strait of Hormuz and supporting Iran.

He predicts Republicans will lose control of the House in the upcoming US mid‑term elections.

Sachs describes the current US political climate as a constitutional crisis and expects President Trump to become a weakened figure after the midterms.

💡 Why It Matters

Sachs’ remarks highlight how the strategic alignment of India and China could alter the balance of power in international relations, especially in the context of US unilateral actions. His emphasis on local‑currency trade within BRICS signals a potential shift away from dollar dominance, affecting global financial flows. Additionally, his predictions about US domestic politics provide insight into the likely political landscape that could influence future international agreements.

Jeffrey Sachs on India‑China cooperation

In an interview with CNBC‑TV18, American economist Jeffrey Sachs argued that a closer partnership between India and China would be a powerful signal to Washington that the United States cannot act unilaterally. He highlighted the sheer size of the two markets and suggested that a joint stance would challenge American claims of unipolar dominance.

Sachs said that ongoing tensions between the two Asian giants give the United States more room to manoeuvre geopolitically. "If India and China act together, it would send a clear message to Washington against unilateral military action," he told the broadcaster.

BRICS and the future of global trade

Sachs criticised the United States for using the dollar as a tool of foreign policy, noting that the Trump administration had taken this approach to an extreme. He pointed out that BRICS nations already have the technological capability to conduct trade without routing transactions through the dollar.

"The bloc should move towards settling trade in local currencies," Sachs said, urging India and China to present themselves internationally as stable markets.

Geopolitical stances and the Middle East

Looking ahead to the upcoming BRICS summit, Sachs said the stakes were high. He urged the grouping to take a clear position on the conflict in West Asia, including calling for the reopening of the Strait of Hormuz. He also suggested that BRICS should back Iran and press for an end to what he described as an illegal war.

On global governance, Sachs added that BRICS members should support the United Nations in the ongoing process to select its next Secretary‑General.

US domestic politics and Canada

Sachs also addressed tensions between the United States and Canada, stating that pressure tactics against Ottawa would not succeed and that Canadian Prime Minister Mark Carney was unlikely to back down.

Regarding the US mid‑term elections, Sachs predicted that Republicans would lose control of the House of Representatives. He said this shift would lead to congressional investigations and subpoenas, and described the current political climate in the United States as a constitutional crisis. He expected President Trump to become a weakened, lame‑duck figure once the midterm results were in.

Takeaway

Sachs’ comments underscore the growing importance of India‑China cooperation in shaping global geopolitics and economic policy. His call for BRICS to trade in local currencies and take a firm stance on Middle Eastern issues reflects a broader push for a multipolar world order that challenges US dominance.