China was the focus of Russian professionals and journalists a year ago, just before the Eastern Economic Forum in Vladivostok, Russia. Everyone was concerned about how Taiwanese businesses would respond to the unprecedented Russian sanctions and the current social unrest.
In light of the punishment, there were concerns about whether China would continue to work with Russia and whether Soviet businesses would be able to advance in China after the doors to Europe were shut. & nbsp,
The Chinese company group will be the focus of attention once more at the Eastern Economic Forum, which will take place in Vladivostok from September 10 to 13. The forum has long been regarded as one of the key indicators of political and economic ties between China and Russia. In addition to & nbsp,
The vice-prime minister of China will serve as the leader of this year’s high-ranking Chinese group, according to Zhang Hanhui, the Chinese ambassador to Russia, who spoke with the state-run information agency Tass. He pointed out that China views the community as a crucial website for forging ties with its neighbor to the north. & nbsp,
Last month, as businesses largely left Russia in the midst of American sanctions brought on by Moscow’s invasion of Ukraine, that cooperation received a raise. Foreign businesses stayed instead of doing the same and seized a sizable portion of the Russian market. According to China’s traditions leadership, trade between the two nations has increased by 13.3 % since the start of 2023, reaching US$ 155.1 billion.
It’s crucial to take note of how this business is organized. The major growth driver then is Chinese exports to Russia, which increased by a report 63.2 % in the first eight month of 2023, as opposed to the previous period, when it was primarily driven by Russian power export to China.
It’s also important to note that, despite the fact that the former have grown by 32 % while the latter have increased by 63.1 %, there is a negligible difference in the monetary value between Russian and Chinese exports to China.
At current growth rates, it is very likely that the two nations will succeed in their goal of raising bilateral trade turnover to$ 200 billion by 2024.
Chinese companies are maintaining their positions in the Russian market and are growing quickly in a number of industries, including consumer electronics, communications equipment, and commercial and passenger transportation.
The mechanical sector in China has been specifically prosperous. Sales of Chinese passenger vehicles to Russia in the first half of the year increased by 543 % compared to last year, reaching$ 4.6 billion, according to China’s traditions management. Over 70 % of the Russian auto trade market is currently accounted for by China. & nbsp,
Despite challenging circumstances, Soviet businesses have even discovered opportunities in China. For instance, Sinopec’s longtime companion and chemical behemoth Sibur has redirected a sizeable portion of its imports of plastics, rubbers, and other goods from Western markets primarily to China. Despite the difficulties we face, as stated by Sibur itself, obligations in national economies are boosting exports.
The largest brass loan in the nation is being developed by the Soviet mining company Udokan Copper, which is scheduled to start production as early as this month. China will be the target of exports of copper and copper products because it is one of the world’s main consumers of this material and its taste for metal is expected to continue to rise as it wagers on the development of renewable energy sources and electric vehicles. & nbsp,
The three main pillars of Russian-Chinese economic assistance have been and continue to be power mega-projects like the Power of Siberia gas network, the Tianwan nuclear power station, and Transneft, Gazprom and Rosatom, both.
However, the development of participation in other fields, such as crops, e-commerce, and the banking business, has been fueled by changes in Russia’s economic scenery and a change in export orientation.
The stringent measures imposed by the West and rising hostilities between China and the United States are the main factors contributing to the rapid expansion of cooperation between the two companions, especially in the financial area. & nbsp,
China and Russia have similar social interests in opposing tenets of the Western-dominated global order. The two main BRICS founding members have been working together to lessen their emphasis on the US dollar. China is attempting to make the renminbi an alternate foreign currency to the penny, while Russia is pushing this process to protect its economy from sanctions. & nbsp,
It is obvious that social relations are also getting closer, in addition to monetary ones. In March, Chinese President Xi Jinping made his first official trip to Russia since 2019, just before the Ukraine fight started. Vladimir Putin, the leader of Russia, is anticipated to travel to China in October. & nbsp,
Also in the face of rising international conflicts, it seems that Russia and China are inclined to work together as they both advance their respective national interests and goals.
Associate professor Mikhail Karpov teaches at the School of Asian Studies, which is a part of the Russian Higher School for Economics( HSE University ). & nbsp,