Despite Western sanctions against Russia, trade with China is rising to a record high. This also has consequences for the Ukraine war.
Since the beginning of the Ukraine war, the West has been trying to bring Russia's economy to its knees with sanctions – so far in vain. In its latest action report, the European Union speaks of “massive and unprecedented sanctions” that affect more than 2,000 individuals and organizations; It was only in December that the EU launched a twelfth package of punitive measures, and other countries, including the USA, Japan and Taiwan, have also imposed sanctions on Russia. However, the economy between Moscow and Vladivostok has not come to a standstill. This is also because another country is trading more diligently with Russia than ever before: China.
Last year, trade in goods and services between Russia and the People's Republic climbed to a record high of more than 240 billion US dollars (around 219 billion euros), an increase of 26.3 percent compared to the previous year. This emerges from Chinese customs data published on Friday and evaluated by the AFP news agency. The numbers are not only good news for Russia, trade with Vladimir Putin's empire is also a ray of hope in an otherwise gloomy economic situation for China. Globally, Chinese exports fell by 4.6 percent last year and imports even fell by 5.5 percent.
China and Russia exceed trade target of $200 billion
However, the latest figures do not come as a surprise. So had China's state and party leader Xi Jinping and Russia President Putin agreed to increase trade between the two countries to $200 billion annually. In December, at a meeting with Russian Prime Minister Mikhail Mishustin in Beijing, Xi was happy to announce that this goal had been achieved “earlier than planned,” namely in the first eleven months of the year. This shows “the strong resilience and far-reaching prospects for mutually beneficial cooperation between the two countries,” said Xi Jinping, who spoke of a “strategic decision” by his country.
China mainly exports cars to Russia, filling the gap left by the withdrawal of Western manufacturers such as BMW and Mercedes. According to data from GlobalData Automotive, the share of Chinese car manufacturers in the Russian market has increased from eight percent in 2021 to now 55 percent. In addition, manufacturers from China apparently export so-called dual-use goods to Russia, i.e. goods that can be used for both civil and military purposes, such as drones, armored vehicles or protective equipment. The USA and the EU therefore accuse China of circumventing their sanctions against Russia. However, there is no evidence that China also supplies weapons or ammunition to Russia. China, in turn, benefits from cheap natural gas supplies from Russia.
China and Russia are moving closer together
Beijing is changing Ukraine war neutral and has not yet condemned Russia's war of aggression. This year the two countries are likely to move even closer together. China's Foreign Minister Wang Yi announced on Wednesday in a telephone conversation with his Russian counterpart Sergei Lavrov that he wanted to “advance the development of bilateral practical cooperation.” On the occasion of the establishment of diplomatic relations 75 years ago, Wang said, the two countries wanted to celebrate a “Chinese-Russian Cultural Year.” Wang did not comment on the civilian casualties of the recent Russian military strikes in Ukraine.
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