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Global impacts of Russia’s economic alliance with China

In this post:

  • Russian clients switched to Chinese industrial valves due to sanctions blocking European options after the Ukraine invasion.
  • Russia and China’s economic ties are strong, with a 26% increase in bilateral trade, totaling $240 billion last year.
  • Despite not providing lethal weapons, China has become crucial for Russia’s defense industry, supplying essential goods.

Russia’s growing economic ties with China are redefining the global economy, showcasing a strong partnership amidst geopolitical changes.

Let’s take an exhaustive look into this alliance to understand their interactions and strategic moves, and what they mean.

Russian Resilience in Wenzhou

A Chinese factory manager watched his Russian clients celebrate at a karaoke bar in Wenzhou. They partied hard, singing and dancing past midnight, elated by the deals they’d struck.

These Russians had switched to Chen’s industrial valves—cheaper than their usual European supplies—important for oil and mining sectors.

With European options blocked due to sanctions from Putin’s 2022 invasion of Ukraine, this pivot to Chinese products symbolizes a broader economic change.

Strategic Meet-ups and Soaring Trade

This week, the camaraderie between Putin and Xi Jinping is set to be on full display in Beijing. This isn’t just a regular meeting; it’s their 43rd, emphasizing the depth of their relationship.

The duo faces Western sanctions, yet their economic bond remains strong, with bilateral trade soaring to $240 billion—a 26% increase from the previous year.

China has become a pivotal player, sending goods like cars and smartphones to Russia and importing vast amounts of Russian energy.

Despite assurances from China about not supplying lethal weapons, it has become an essential conduit for goods vital to Russia’s defense sector.

This development has caught the attention of the US, with officials like Antony Blinkin and Janet Yellen cautioning China against aiding Russia’s military endeavors.

The economic ties are strategic moves by China to reposition global power dynamics in its favor, challenging the US-led order.

Technological Ties and Global Alignments

In 2023, a massive chunk of Russia’s tech imports, especially dual-use high-tech goods, came from China, accounting for 60% of its total tech imports.

This includes $3.9 billion in telecom equipment and substantial purchases of microprocessors and lab equipment.

Interestingly, most of this technology originates from the West, yet it reaches Russia through Chinese intermediaries, exploiting loopholes in Western compliance norms.

The collaboration extends beyond economics into geopolitical strategies. Putin’s upcoming visit to China, his second in less than a year, signals their common enmity against the West.

The leaders are leveraging their countries’ positions to counterbalance American influence, especially as the US faces criticism for its actions in Gaza and its broader foreign policies.

Their coordination is evident as they navigate through international pressures and align with other nations like Iran and North Korea, which also oppose American policies.

This alliance is bolstered by economic, military, and technological cooperation, aiming to create an alternative axis of power.

So yeah, as Putin steps into China, fresh from securing another term that extends his rule till 2030, the discussions will likely focus on strengthening their joint sovereignty, territorial integrity, and security.

The talks are expected to cover advancements in high-tech industries, space exploration, nuclear energy, and renewable resources, reflecting their commitment to deepening ties in innovative fields.

DisclaimerThe information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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