Chinese President Xi Jinping has decided not to attend the 17th BRICS Summit in Rio de Janeiro, Brazil, marking the first time he has missed the gathering of major emerging economies since taking power in 2012.

This absence comes at a critical moment for BRICS, which has expanded to include Egypt, the United Arab Emirates, Ethiopia, Indonesia, and Iran, in addition to its founding members Brazil, Russia, India, China, and South Africa.

Xi’s decision to send his trusted second-in-command, Premier Li Qiang, instead of attending himself, has sparked speculation about internal political dynamics within China and the cohesion of BRICS.

According to Chong Ja Ian, an associate professor at the National University of Singapore, BRICS is a crucial part of Beijing’s effort to ensure it isn’t hemmed in by US allies. However, with the Trump administration’s shake-up of relations even with key partners, Xi might not prioritize BRICS as much, focusing instead on steering China’s domestic economy.

Several factors might have contributed to Xi’s absence, including low expectations for major breakthroughs at this year’s summit and a heightened focus on domestic issues.

China is facing significant economic challenges due to trade frictions with the US, and its leaders are busy charting a course for the next five years ahead of a key political conclave expected this year.

Additionally, Xi’s recent diplomacy, including a visit to Brazil in November for the G20 summit and a state visit, might have reduced the need for his presence at the BRICS summit.

The absence of Xi and Russian President Vladimir Putin, who will attend via video link due to an International Criminal Court arrest warrant, leaves Indian Prime Minister Narendra Modi in the spotlight. Modi will visit Brazil for both the summit and a state visit.

The BRICS summit will likely focus on promoting the use of national currencies and reducing reliance on the US dollar, a move that could potentially challenge the dollar’s dominance in global trade.

BRICS has been working towards de-dollarization, with member countries like Russia and Iran, which are heavily sanctioned by the US, finding it particularly attractive.

Earlier this year, Brazil’s President Luiz Inácio Lula da Silva included “increasing payment options” to reduce “vulnerabilities and costs” among the goals of Brazil’s host term.

Russia has also pushed for the development of a unique cross-border payments system. However, the idea of a “BRICS currency” is unlikely to be on the negotiating table, given the strong opposition from the US president.

The BRICS summit will be closely watched for signs of how the group will navigate the complex global economic landscape, particularly in light of the upcoming deadline to negotiate US tariffs set to be imposed by President Trump. As countries convene in Rio, observers will track how strident their leaders are in promoting the use of national currencies, given China’s leading role in the group and the US’s significant global economic influence.