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Xi and Putin Bind China and Russia’s Economies Further, Despite War in Ukraine
In recent years, China and Russia have become closer economic partners, despite the ongoing conflict in Ukraine. The relationship between the two countries has been strengthened by their mutual interest in economic growth and continued dominance in global affairs. By focusing on building stronger trade ties, Russia and China hope to challenge the dominance of the US and other Western powers on the global stage.
Over the last decade, China and Russia have strengthened their economic ties, particularly in the energy sector. Energy deals between the two countries have increased significantly, with Russia supplying China with oil and gas and China investing heavily in Russia’s energy infrastructure. The two countries have also increased trade in other sectors, such as technology and agriculture.
One of the most significant investments made by China in Russia was the construction of the Power of Siberia gas pipeline. The pipeline, which stretches 3,000 miles from Siberia to eastern China, is a major achievement for the two countries. The pipeline provides China with a new source of energy and reduces its dependence on other countries, particularly those in the Middle East. For Russia, the pipeline provides a new market for its energy exports and helps to reduce its dependence on the European Union.
Another significant investment made by China in Russia was the acquisition of a large stake in the Russian energy company Rosneft. The deal, worth $9.1 billion, gave China access to Russia’s vast oil reserves and helped to create a stronger economic partnership between the two countries.
While the economic ties between China and Russia have continued to grow, the conflict in Ukraine has had a significant impact on the relationship between the two countries. Russia’s annexation of Crimea in 2014 and its subsequent involvement in the conflict in eastern Ukraine led to international sanctions being imposed on the country. These sanctions had a significant impact on Russia’s economy, making it more reliant on China for trade and investment.
China has taken advantage of Russia’s reliance on its economy to strengthen its trade ties with the country. In 2019, China became Russia’s largest trading partner, with bilateral trade reaching $110 billion. China’s investment in Russia has also continued to grow, with Chinese companies investing heavily in Russia’s infrastructure, such as the construction of new roads and railways.
While the relationship between China and Russia has been strengthened by their mutual interest in economic growth, there are also significant challenges that the two countries need to overcome. One of the biggest challenges is the fact that Russia is heavily reliant on energy exports, particularly to Europe. China, on the other hand, is heavily reliant on exports to the US and other Western countries.
As a result, the two countries’ economies are intertwined, but not necessarily complementary. China’s economic growth relies on its ability to export goods to Western countries, while Russia’s economy relies on its ability to export energy to Europe. If tensions between China and the Western powers were to increase, it could have a significant impact on Russia’s economy, which is heavily reliant on exports to Europe.
Despite these challenges, the economic relationship between China and Russia is likely to continue to grow. Both countries have a mutual interest in reducing their dependence on Western countries and challenging the dominance of the US and other Western powers on the global stage. By working together, China and Russia hope to create a new balance of power in the world and secure their positions as major players in the global economy.
In conclusion, the economic ties between China and Russia have continued to grow despite the conflict in Ukraine. China has taken advantage of Russia’s reliance on its economy to strengthen its trade ties with the country. The two countries have focused on building stronger trade ties, particularly in the energy sector. Despite the challenges that the two countries face in creating an intertwined yet complementary relationship, the continued economic relationship between China and Russia will be vital in shaping the future of global affairs.