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Faculty of Business Studies
Module: Presentation and Communication Skills
Examiner: Dipl. Ök. Marina Alvares-Wegner

The BRIC countries

Leslie Authier
Matr. No.: 7007017
Diana Carolina Ramirez R.
Matr. No.: 7004479
Maya Höpfner
Matr. No.: 7003768

Table of content

Introduction...................................................................................................... 2


The Federative Republic of Brazil .................................................................... 3
2.1 General information on the Federative Republic of Brazil....................... 3
2.2 Brazil’s connection with the European Union.......................................... 4
2.3 Brazil’s financial situation........................................................................ 5
2.4 Brazil’s imports and exports.................................................................... 6
2.5 Brazil’s leading companies ..................................................................... 9


The Russian Federation................................................................................. 10
3.1 General information on the Russian Federation ................................... 10
3.2 Russia’s connection with the European Union...................................... 11
3.3 Russia’s financial situation.................................................................... 12
3.4 Russia’s imports and exports................................................................ 13
3.5 Russia’s leading companies ................................................................. 14
3.6 Conclusion ............................................................................................ 16


The Republic of India ..................................................................................... 17
4.1 General information on the Republic of India........................................ 17
4.2 India’s connection with the European Union ......................................... 19
4.3 Financial situation of India .................................................................... 20
4.4 India’s imports and exports ................................................................... 21
4.5 India’s leading companies .................................................................... 23
4.6 Conclusion ............................................................................................ 25


People’s Republic of China ............................................................................ 26
5.1 General information on the People’s Republic of China ....................... 26
5.2 China’s connection with the European Union ....................................... 27
5.3 China’s financial situation ..................................................................... 28
5.4 China’s leading companies ................................................................... 30
5.5 Conclusion ............................................................................................ 31


Summary and conclusion............................................................................... 32

List of references .................................................................................................. I

1 Introduction

Nowadays the emerging nations of the world make out an important part of the world’s economy concerning production, raw material supply and manufactured goods and services. The most popular emerging nations are the BRIC countries.
BRIC is an acronym for Brazil, Russia India and China. This term was first used in the report “Dreaming with the BRICs: The Path to 2050”, which implies that by 2050 these emerging countries could be wealthier than most of the current major economical powerful countries1 and by 2025 the BRICs could count for over a half the size of the G6 (USA, Japan, Germany, France, Italy and UK) by 2025.2
Furthermore it was said that China and India will become the most dominant suppliers of manufactured goods and services, while Brazil and Russia will become the world leaders in supplying raw materials. The four BRIC countries are seen as a lucrative source of foreign expansion due to the lower labor and production costs.3
This written assignment aims to explain the importance of these four economies and its relation to the EU. At first, the four BRIC countries will be explained with emphasis on the political and economic background of each country. Afterwards the written assignment will be closed with a summarizing conclusion.


Goldman Sachs (2003): p. 1.
Goldman Sachs (2003): p. 4.
3Cf. Investopedia (06.2016): BRIC term.



2 The Federative Republic of Brazil
The following chapter provides general information on the Federative republic of
2.1 General information on the Federative Republic of Brazil
The Federative republic of Brazil is situated in South America. Its capital is Brasilia and there are 200 000 000 people. The language is Portuguese and the main religion is Roman Catholic (68%) followed by Evangelicals (20%). The government is a federal republic presidential chaired by Dilma Rousseff re-elected the 26th of
October 2014. The currency is the real (1€ = 3.1 reais)4
Brazil is discovered on the 22nd of April 1500 by the explorer Pedro Alvares Cabral and then becomes the possession of the Portuguese crown in 1522. Portuguese begin the exploitation and the trade of the Brazilian-wood. In 1532, the sugar cane culture starts. Thanks to this, the region North-East will be the most important massive population centers until the end of the 19th century. In 1549, the king Juan
III decides to establish a “general government of Brazil” and to divide it in 13 harbor offices. Jesuits evangelize local people and found the city of Sao Paulo. After the gold discovery, Brazil begins the first producer of gold in the world during all the 18th century. In 1703, Portugal signs the Methuen treaty granting the trade monopoly to
United-Kingdoms with the Brazil. This one gives a new rise to the rice, tobacco and sugar cane culture. In others regions, the cotton culture and cocoa culture appear.
Brazil is proclaimed independent in 1822 and begins an empire with Pedro 1st.5


Diplomatie (04.2015): Bresil.
Larousse (05.2015): Bresil histoire.


2.2 Brazil’s connection with the European Union
The following chapter provides Brazil’s relation to the European Union.
The Brazil has an opened foreign politics. Indeed, his principal aim is to support the reform of the international order. This country wants to be one of the global player concerning internationals decisions and actions. Today, Brazil has diplomatic relations with all States present in the UN. His objective is to conclude strategic partnership to stimulate his trade and his development. He fosters South-South cooperation within BRICS and IBSA (India, Brazil and South Africa). Another
Brazilian goal is to be the stimulus of integration and the leader of South America.
He is one of the principal members of the MERCOSUR and he desires to solve regional and international conflicts.6 To conclude, thanks to this political and economic weight and its capacity of training of developing countries Brazil is a major partner for European Union. Moreover, it is one of the main members of the
MERCOSUR which means a good opportunity for EU to access to new developing countries in South America.

6 Cf. Diplomatie (06.2015) : Presentation du Bresil.


2.3 Brazil’s financial situation
The following chapter provides the current financial situation in Brazil.


This chart represents the GDP of Brazil from 2008 to 2014. We can notice it increased a lot in 3 years due to its foreign policy and its development.


On the top is the evolution of the minimum monthly wages from 2008 to 2014. This chart illustrates the quick development of the country and then the distribution of wealth. Wages followed the improvement of the country.


2.4 Brazil’s imports and exports
The following graphics show Brazil’s imports and exports.
Brazil has an export-oriented economy, depending on expeditions of raw material.


This country exports in majority raw materials and intermediate product (62%) such as soil beans, corn, beef, iron, copper, ore, coffee and cars. It also exports food products (10%), fuels and lubricants (8.5%) and mobile equipment (5%). Thanks to this chart, we can notice that exportations decreased a lot but it is due to the
Brazilian policy; less quantity for more quality.



Brazil main imports are: raw material and intermediate products (45 percent of the total imports), capital goods (22 percent), fuels and lubricants (16 percent), durable consumer goods (10 percent) and food products (3 percent). We can observe importations decreased a lot from 2014 to 2015 by 26%.

Main trading partners are Asian, European union, ALADI and then China. The following chart presents the importance of trade for each country.
Brazil’s exports to country in February 2015 (USD million)




Trading Economics (06.2016) : Brazil.


2.5 Brazil’s leading companies8
The following spreadsheet shows Brazil’s leading companies measured in total



Telefonica S.A





Pension fund




BBD Participacoes



Stichting Gerdau Johannpeter




Forbes (06.2016) : The 20 companies that own Brazil.


3 The Russian Federation
The following chapter treats general information on the Russian Federation
3.1 General information on the Russian Federation
Russia is the world’s largest country in total area and extends over much of northern
Eurasia. Its capital city is Moscow and the population of Russia is about 142.5 million. The majority of its population with 75% is orthodox.
As part of the Soviet Union Russia was under an authoritarian one-party communist regime from 1917 to 1990. The regime of Gorbachev from 1985 to 1990 was marking the end of an era of isolation. Gorbachev spread the principles of openness and restructuring (glasnost and perestroika), encouraging private enterprises and economic reforms. He also initiated the process of Russia’s integration with the world. In 1991 Boris Yeltsin became the first democratically elected president of
Russia. Under Yeltsin’s regime the early 1990s were characterized by skyrocketing prices and a credit crisis devastated many industries in Russia. Yeltsin resigned in
December 1999 due to the continuing political and economic debacles and Russia’s debt default in 1998 and the following financial crisis. He nominated Putin who went on to win the presidential elections in 2000.9 In September 2005 Russia and
Germany sign a major deal to build a gas pipeline under the Baltic Sea between the two countries.10


Thomas White (06.2016): Russia rebounding from recession.
BBC (06.2016): The world and Europe.



3.2 Russia’s connection with the European Union
The following chapter treats Russia’s relation to the European Union
As it will be mentioned in the following chapters, the EU is Russia’s most important trading partner. Since 1997 there has been a Partnership and Cooperation agreement (PCA) to determine the economic and political affairs between the EU and the Russian Federation. Due to this agreement, the relationship between
Russia and the EU has become more intensive in the last few years.
Since 2008 there has been renegotiations concerning the contents of the PCA to improve the economic and political relation between Russia and the EU. But the relationship between Russia and the EU has suffered due to the territorial conflicts with the Ukraine. Furthermore Russia and the EU aim to introduce simplifications in terms of entry each other’s countries to strengthen the interpersonal relations. But due to Russia’s annexation of Crimea, the EU has temporary cancelled all current negotiations and renegotiations concerning the PCA.11


Auswärtiges Amt (06.2016): Russland und EU.


3.3 Russia’s financial situation
The following chapter treats the current financial situation in Russia.
The graphics below show Russia’s GDP (gross domestic product), Imports and


As shown in the graphic above, Russia’s GDP increased constantly from 2006 to
2009. From 2009 to 2010 the GDP dropped and from 2010 it has increased, reaching an all time high in 2014. The GDP of Russia counts for 3.38% of the total world economy.12
Due to the sanctions of the EU Russia’s financial situation has suffered. It is projected that Russia’s first-quarter GDP in 2015 would be fallen by 10%, given the prevailing energy prices and the lack of foreign borrowing.13
Furthermore it took a drawdown of reserve funds and forced currency repatriation to keep the decline of the GDP as low as possible.14


Trading Economics (06.2016): Russia’s GDP.
Forbes (06.2016): The Russian Decline Is Accelerating.
14Cf. Forbes (06.2016): The Russian Decline Is Accelerating.


3.4 Russia’s imports and exports
The following graphic shows Russia’s main import and export partners.


As shown in the graphic above, the EU (European Union) is by far Russia’s main trading partner, while Russia is the EU’s third largest trading partner.15 Russia’s main imports are food with 13% and ground transports with 12% of total imports. 16
Concerning exports, Russia is highly dependent on exports of raw materials like crude oil, natural gas and petroleum products, which counts for 68% of total shipments. Russia’s main export partner is, as shown above, the EU, in which the
Netherlands count for 15%, Italy for 8.6%, and Germany for 8.1% of total exports to the EU.17

Cf. Huffington Post (06.2016): Russia’s top import and export partners.
Trading Economics (06.2016): Russia imports.
17Cf. Trading Economics (06.2016): Russia exports.




3.5 Russia’s leading companies
The following spreadsheet shows Russia’s five leading companies measured in total




$158.0 B

Oil and Gas


$129.0 B

Oil and Gas


$121.4 B

Oil and Gas


$58.1 B

Regional Banks


$28.6 B



As seen above, Gazprom is Russia’s largest company in total sales. It is headquartered in Moscow. Gazprom is specialized in geological exploration, production, transportation, storage, processing, and marketing of gas and other hydrocarbons.18 The second largest company in Russia is Rosneft. This company is engaged in exploration, development, production and sale of oil and gas, petroleum products and petrochemicals. Similar to Gazprom Rosneft is headquartered in Moscow. 19
LukOil is with $121.4 B of total sales the third largest company of the Russian
Federation. It is headquartered in Moscow and as well as Gazprom and Lukoil specialized in the exploration, production, refining, marketing and distribution of oil.20 18Cf.

Forbes (06.2016): Gazprom
Forbes (06.2016): Rosneft
20Cf. Forbes (06.2016): LukOil


In opposition to the first three largest companies in Russia, Sberbank is engaged within the bank sector. It is headquartered in Moscow and provides several banking services to retail clients, including various types of loans, deposits, bank insurance or brokerage. Sberbank is also engaged in international activities like direct settlement agreements, correspondent accounts or trade finance operations.21
The last company shown in the spreadsheet above is Sistema. Sistema operates as an investment holding company, specialized in investment activities and operates within the telecommunication sector.22


Forbes (06.2016): Sberbank.
Forbes (06.2016): Sistema.


3.6 Conclusion
According to Goldman Sachs, that Russia could overtake Germany, France, Italy and the UK in US dollar terms by 201523 is not a possible scenario anymore. As we concluded in this assignment Russia has suffered political as well as economic issues. But the Russian Federation is still one of the largest and most powerful economies in the world and is still one of the most important supplier of raw materials like crude oil, for instance.
Furthermore Russia is different from the other countries from the BRIC alliance, as individuals in Brazil, India or China are still likely to be poorer than the people in the
G6 economies, except for Russia, which is essentially catching up with the poorer of the G6 countries in terms of income per capita by 2050.24
So it is recommendable to strengthen the diplomatic relationship between the EU and the Russian Federation, as the EU is highly dependent on Russia, in terms of import and exports, and vice versa. The Russian Federation and the EU need to find an adequate solution to their disputes to ensure the ongoing political and economic cooperation as these two nations are too dependent on each other and too important for each other, both, in a political and an economic context, to keep their relationship and corporation to the present situation.


Goldman Sachs (2003): p. 4.
Goldman Sachs (2003): p. 5.


4 The Republic of India
The following chapter provides general information on the Republic of India.
4.1 General information on the Republic of India
The Republic of India is a huge country situated in Asia. Its population is composed by 1 267 million of people and its official languages are English and Hindi. There are also 18 non-official languages. The main religion is the Hinduism (80.5%) followed by the Islam (13,4%). The capital is New Delhi. This country is a federal republic chaired by Pranad Mukherjee (since 25.07.2012). The currency is the indian rupee (1€ = 67.37 rupee).25
Portuguese and Spanish are the first European people to reach India and to establish trade bases in 1498 by force. Portuguese trade will stay thriving during all the 6th century. In 1600, East India Company (from the United-Kingdoms) and
Vereenigde Oost-Indische Company (from the Netherlands) are created. Then,
English edify there first factory in Surat in 1612. The United Kingdom begins then to create different trading post in India.
France comes to India only in during the second half of the 17th century. Colbert creates the French India company in 1664. Ten years after, the Bijapur’s sultan allows French to go to Pondichéry. Other trading post will be conquered only during the 18th century.
In 1765, East India Company acquires the responsibility of the taxes perception and the Finance administration in 3 provinces in the North-East. Its power increases.
Thanks to this, Great britain begins one of the principal territorial. India is proclaimed independent in 15th of august 1947.


Diplomatie (06.2016): Presentation de l’inde.


The main characteristic of India is its young population. These following charts give a good overview of this advantage. To illustrate, we willcompare with Germany.


This graph on the left represents the pyramid of age of India. The main majority of the population is under 19 years old and there are a lot of people between 20 and
40 years old.
The one on the right is the pyramid of age of Germany. The majority of the population is between 45 and 54 years old. There are more old people than the younger generation.


4.2 India’s connection with the European Union
The following chapter treats the economic and political relations between the EU and India.
The Delegation of the EU in New Delhi aims to broaden and deepen the political and economic cooperation between the EU and India. As the EU is India’s first partner in terms of trade and actual investment inflows and one of its main partners of economic and development cooperation, it is crucial for both to strengthen their political and economic relations by regular exchanges of visits between the EU and
The EU-India partnership is embedded in a strong institutional building. Since 2000 there has been annual Summits and ministerial meetings of both to discuss common concerns and interests, which represents a visible feature of an ongoing political and economic dialogue. Furthermore the relation between the EU and India are strengthened by









Moreover, both countries are aiming to make people and cultures meet, by sponsoring academic, cultural and media exchanges between the EU and India. 28


Europa (06.2016): political and economic relations.
Europa (06.2016): political and economic relations.
28Cf. Europa (06.2016): political and economic relations.


4.3 Financial situation of India
The following Chapter provides information about the financial situation of India in relation to the import and export.
Since the opening to global trade India's GDP has been growing roughly 4.1% each year.29 Even though India is experiencing a high economic growth the population inequality is still rising. Approximately 30% of the Indian population live below the poverty line and have almost no chance to improve their financial situation.30 Due to the increasing urbanization and migration out of the countryside, cities like Mumbai contain the largest amount of people living in slums. One of the largest slums in the
Asian world is Dharavi. According to statistics roughly 1 million people inhabit that area. Measures such as equal access in all social levels to education had been taken in order to combat poverty and reinforce economic growth.31


Like in China, India created special economic zones to attract foreign companies and investors. Due to their vastly amount of mineral resources such as chrome, steel and iron it was possible for foreign steel production companies to settle down.
Nowadays the steel production is one of the strongest industries of India.


Trading Economics (16.06.2015):India’s exports.
Zeitonline Zeitgeschehen(07.07.2014):Rund 30 Prozent der Inder fallen unter die


4.4 India’s imports and exports
The following chapter provides information on India’s export and import
According to recent statistics India has developed to the biggest refined product exporters in Asia. Around 20% of all exports is petroleum. It also exports: engineering goods about 19%, chemical and pharmaceutical products14%, jewellery 14%, agricultural products such as spices, cotton, tea and rice 10% as well as textiles and clothing 10%. India’s main export partners are: United Arab Emirates about 12.1%, the United States 12%, Singapore 4.5%, China 4.5%, Hong Kong 4% and Netherlands 3.5%. The graph below shows the export and import per month of the years 2014 and 2015 measured in million US dollars.32


One can discern that the export had been higher than the import in the first quarter of the year 2014. In the year 2015 both the export and import decrease more or less equally sharply. One possible explanation for the fluctuation in the amount of exports and imports could be the drop of price in commodities which is favorable for India's economy and the increasing production of goods within the country due the settle down of foreign companies. While the trade products with the EU slightly decreased comparing the years 2013 – 2015 the trade with Asian countries increased.33 This


Trading Economics (16.06.2015):India’s exports.
Government of India, Ministry of Commerce and Industry(06.2015):Total trade.


can be explained by the current conflict the EU is facing with Russia due to the
Ukraine dispute. Due to globalization all economies are linked with each other which is favorable for global trade but a disadvantage when it comes to conflicts between single countries. This leads to periods of global recessions and global recovery because each economy depends on the development of the others.34


Trading Economics (06.2015):India’s exports.


4.5 India’s leading companies
The following spreadsheet shows India’s five leading companies measured in total



Indian Oil

$74.3 B

Oil and Gas

Reliance Industries

$71.7 B

Oil and Gas

Tata Motors

$42.3 B

Car Industry

State Bank of India

$40.8 B

Regional Banks

Bharat Petroleum

$40.6 B

Oil and Gas


As shown in the spreadsheet above India’s largest company in total Sales is Indian
Oil. It is headquartered in New Delhi and is specialized in refining, pipeline transportation and marketing of petroleum products.35
The second largest company in India is Reliance Industries. Reliance Industries is engaged in exploration and production of oil and gas, petroleum refining and marketing textiles, retail and special economic zones as well. It is headquartered in
The third largest company of India is Tata Motors which is engaged in the business of automobile products as well as financing of the vehicles sold by the company.
Similar to Reliance Industries, Tata Motors is headquartered in Mumbai.37


Forbes (06.2016): Indian Oil.
Forbes (06.2016): Reliance Industries.
37Cf. Forbes (06.2016): Tata Motors.


The fourth company shown in the spreadsheet is the State Bank of India which operates within the bank sector. It provides commercial banking servives which includes merchant banking, fund management, factoring, primary dealership, broking, etc. The State Bank of India is headquartered in Mumbai and operates in the four segments of Treasury, Corporate Banking/Wholesale Banking, Retail
Banking and other Banking Business.38
The last company shown in the spreadsheet is Bharat Petroleum which operates within the oil and gas industry. As the State Bank of India, Tata Motors and Reliance
Industries it is headquartered in Mumbai. Bharat Petroleum engages in refining of crude oil and marketing of petroleum products. Its segments include Downstream
Petroleum and Exploration and Production of Hydrocarbons.39


Forbes (06.2016): State Bank of India.
Forbes (06.2016): Bharat Petroleum.


4.6 Conclusion
Forecast about the evolution of the Indian population

According to the forecasts, we can observe that the Indian population will still increase during years to come. This is an important information for the European
Union concerning the trade with India.


5 People’s Republic of China
The following chapter provides general information on the People’s Republic of
5.1 General information on the People’s Republic of China
The Peoples Republic of China is located on the Asian continent and is recognizable due to its particular “rooster” shape. According to statistics, China's total area covers about 6.4% of the earth´s surface. On the Ranking “Countries of the world by area” it comes fourth behind the United States, Canada and Russia with a population of about 1.3 billion people accounting for 20% of the world´s population on earth. 40
Goldman Sachs assumed that by 2041 China could become the largest economy in the World Surpassing even the United States. Nevertheless it was also assumed that the economic growth of the developing countries such as China will eventually slow down once they get closer to the economical level of the strong economies.41
This assumption relies on investigations made by Goldman Sachs in relation to the economic size and growth, the income and demographics, global patterns and currency movements of China. Back in the 18th century at the time of the last
Dynasty China was already a powerful economy exporting luxurious goods such as tea, silk, porcelain and spices to Europe. At that time the Chinese empire had the total control over the population and the trading activities with the European countries. Many European trade delegations tried in vain to force China to open up their strict trade barriers. It was only after the introduction of the Opium drug in 1800 that made it possible for them to enter the country and destabilize it. 42 After the ending of the Dynasty era followed the Cultural Revolution under the leadership of
Mao. China's cultural heritage was destroyed and the country isolated from the rest of the World until Deng Xiaoping (1976-1997) Mao's successor transformed China's planned economy into a socialist one on the basis of three reformation stages giving the country the necessary impulse to develop into today's leading economic power.43 40Cf.

National Geographic(no date):China Facts.
Goldman Sachs;(2003),p.6.
42Cf. Noesselt,N.,(2012),S.30.
43Cf. Ibidem.


5.2 China’s connection with the European Union
This chapter deals with the trading relationship between China and the European
Union specially focusing on trade cooperation with Germany and France.
China is an important trading partner for the European Union particularly due to its increasing importance at political and economic level on global stage. Since its introduction to the WTO on 2001, China has been liberalizing important sectors of its economy facilitating its integration into the global economic order.44
Volkswagen a German car manufacturer and leader in the automotive sector entered the Chinese market in 1983. Back then as well as today, it was not easy for foreign companies to enter the market due to governmental requirements such as a joint venture between a foreign company and a local company. Volkswagen had to enter a joint venture with China's biggest car producer of that time, Shanghai
Automotive Industrial Cooperation (SAIC).45 Furthermore China is about to become one of the world's largest aviation markets and home to a growing number of Airbus manufacturing and support operations. Therefore, the French company Airbus decided to shift production sites outside of Europe. The A320 began operations during September 2008 in Tianjin as a joint venture between Airbus and a local manufacturer called China Aviation Industry Corporation (AVIC).46 Nevertheless the
European Union complains that for some European companies the entrance to the
Chinese market is still impossible. Many European companies for example from the energy sector claim to be systematically discriminated against the state granted
Chinese competition. Also companies from the IT-sector are facing problems to enter the market as they are required to possess a license before entering or to disclose private information about the company’s product whereas many Chinese manufacturers have almost no limitation when it comes to buy up companies in


European Commission (03.2014):Countries and regions, China.
Handelsblatt (04.2013):30 Jahre Tanz mit dem Drachen.
46Cf. Airbus (no date):Airbus in China.
47Cf. Handelsblatt (04.2010):EU fordert Marktöffnung in China.



5.3 China’s financial situation
The following Chapter discloses the financial situation of China providing an overview on the economic development in relation the exports and imports.
Many of today's consumer goods are produced in China and exported to the rest of the World. In 2009 China surpassed Germany as the world champion in exportation.
According to the news, China exported in 2014 goods worth USD 4 billion leaving also the United States behind. Nowadays, 10% of the world's trade is carried out by
China.48 Its main trading partners are the United States accounting for roughly
25,8% followed by Hong Kong with 20,9%, Japan with 15% and Germany amongst several other countries with a percentage of approximately 4,9.49


The graph above shows that the exports have been high in the year 2014 but are decreasing towards the year 2015. The slowing down of the economic growth might be due to several reasons such as the trend of shifting production from quantity to an increase in quality as well as the demographic development influenced by the one child policy which causes a slowdown in population growth. Several social and environmental issues led the government to introduce new reforms in order to improve sustainable economic development.50


Frankfurter Allgemeine(01.2014):China ist jetzt die größte Handelsnation der Welt.
Bundeszentrale für politische Bildung(03.2006):China in der Weltwirtschaft.
50Cf. Auswertiges Amt(05.2015):Wirtschaft China.


The following graphic shows China’s imports.


China imports mainly electro-mechanical products to an extent of 43 percent of its total imports and commodities such as crude oil, iron ore, cooper, aluminum and soybeans. Its main import partners are The European Union, South Africa, Brazil, the South Asian economic community “ASEAN” and other Asian countries such as
Japan, South Korea and Taiwan.51 In the first quarter of the year 2015 the imports decreased. Reasons for the reduction might be the increase of domestic production.
The governmental aim it is to transform the current investment and export oriented economy into a domestic one.52


Trading Economics(06.2015): Import China.


5.4 China’s leading companies
The following spreadsheet shows China’s leading companies.



Petro China

$333.4 B

Oil and Gas operations


$166.8 B

Major Banks

China Construction Bank

$130.5 B

Regional Banks

Agricultural Bank of China

$129.2 B

Regional Banks

Bank of China

$120.3 B

Major Banks


The table above shows the five strongest companies in terms of sales. Even though the banking sector dominates, Petro China a company from the oil and gas industry is by far the strongest. It was founded in 1999 and headquartered in Beijing and deals with the exploration, development, production and sale of crude oil and natural gas.53 53

Cf. Forbes(05.2015):Petro China.


5.5 Conclusion
Concluding, the assumptions of Goldman Sachs in relation to China's development to become the world's strongest economy in 2041 were almost correct. China did develop to the world's strongest economy but much earlier than expected. Recent developments also showed that the assumption of the slowing down of China's economic development where right. Consumers worldwide will soon notice the change in quality of imported products from China. The change of an export oriented economy towards an innovative one, might also have an impact towards foreign investors and companies. Since the government is putting emphasis on solving social, economic and environmental issues changes have been made in terms of the workers’ wages and rights as well as the increasing focus on product quality by companies. This means that there will be no longer cheap labor and so investors and foreign companies seeking cheap production will have to look out for another country. But for Germany or France this might be the perfect moment for investment as both countries have a close cooperation with China and are known for manufacturing high quality products. Their concern about the trade regulations and the protection of their intellectual rights on their products might be abolished particularly since China is reforming and keen to keep the trade partnerships between China and the two European countries stable.


6 Summary and conclusion
BRIC is not only a cooperation between the countries Brazil, Russia, India and
China but a political entity. In July 2015 Russia will be the host of the seventh meeting where issues such as Investment, Financial and Health Cooperation will be discussed. The BRIC alliance has become one of the most important multilateral cooperation for its members. Due to the strength of the US dollar, the devaluation of currencies and capital fights, China and Russia share the same desire of strengthen the cooperation between the BRIC countries.54 Coorperation is one of the main aims to be pursued in this alliance as a measure to prevent the geopolitical isolation of its members. They pursue the implementation of mutual political trust, cultural as well as economical exchanges and fortify diplomatic ties among the BRIC members. Brazil possesses several natural resources and large amounts of cultivable land but lacks in internal savings to build up the infrastructure for production sites as well as job creation. Russia on the other hand has a higher level of wealth distribution, whereas India and China are important suppliers of high qualified workforce, due to their young population. Therefore the BRIC nations are able to compensate each other’s lacks and strengthen and support each other’s potentials. That makes the BRIC nations an essential partner for the EU in terms of trade as well as a strong competitor.


Cfr (06.2016): A Chinese perspective on the BRICS in 2015.


List of references
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ULR: (accessed on: 15/05/2015,
Author unknown: Gazprom, on: Forbes the world’s biggest public companies,
05.2015, ULR: (accessed on:
11/06/2015, 9:35am)
Author unknown: State bank of India, on: Forbes the world’s biggest public companies, 05.2015, ULR:
(accessed on: 08/06/2015, 14:00pm)
Author unknown: Rosneft, on: Forbes the world’s biggest public companies,
05.2015, ULR: (accessed on:
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(accessed on: 16/05/2015, 20:34pm)
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(accessed on: 03/06/2015, 15:44pm)
Author unknown: Russia, on: Worldatlas, no date, URL: (accessed on:
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Tabelle 1: Source:

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