China at Brics summit

The fifth BRICS summit is underway in South Africa's coastal city of Durban - the first time for the meeting to be held on African soil.

The group - comprising the world's fastest emerging economies - agreed to cooperate more closely... Including through a new development bank, that could transform international lending and aid.

PKG

This is the changing face of the global economy: the BRICS.

Comprising Brazil, Russia, India, China and South Africa, they represent about 40 percent of the world's population, nearly a fifth of global gross domestic product, and 17 percent of world trade.

Themed "BRICS and Africa: Partnership for Development, Integration and Industrialization", the two-day summit brings together leaders from the five nations, as well as from various African countries...

To which China is an increasingly big benefactor - renewing a loan to Africa of 20 billion U.S. dollars, to support its development over the next three years.

On Tuesday, China's Finance Minister Lou Jiwei confirmed the BRICS nations have agreed to set up a development bank, to fund infrastructure in the five emerging economies.

Lou said the bank would complement existing development institutions, such as the World Bank and Asian Development Bank.

If built, it could become a less costly alternative for third world countries, seeking development loans...

But details as to its size and scope of operations aren't yet final... And BRICS finance ministers have yet to decide on initial investments from each country.

Tuesday also saw sober discussions among commerce ministers, on how trade can be sustained, in tough economic times:

SOUNDBITE (CHINESE) CHEN JIAN, Chinese Vice Commerce Minister:

"Ministers have expressed concerns over many uncertainties amid the slow global economic recovery. We have unanimously denounced trade protectionism under such circumstances and competitive currency devaluation. These policies will only worsen existing problems."

Chen also said the devaluation of some currencies through quantitative easing will add to the shock of global liquidity and hinder the global recovery...

And that China will take action to curb "irregular" capital inflows.

At the meeting, BRICS ministers also agreed to strengthen their partnership.

SOUNDBITE (CHINESE) CHEN JIAN, Chinese Vice Commerce Minister:

"The BRICS nations have agreed to tighten cooperation to rise to global economic challenges. We hope, under the frameworks of the WTO, G20 and other multilateral organizations, BRICS nations can strengthen communication and coordination."

The BRICS commerce ministers also approved a framework for future trade and investment...

As the world's biggest emerging economies attempt to counter mounting uncertainty, from Europe and America.

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On Wednesday, leaders of the five BRICS nations will attend a forum along with a number of African heads of state.