China and Russia: A Strong Alliance Amidst Western Pressure
In a display of unity, China and Russia have emphasized their commitment to strengthening trade and security ties, despite facing challenges from the West. Premier Li Qiang, during a meeting with Russian Prime Minister Mikhail Mishustin in Hangzhou, highlighted the deep-rooted trust between the two nations, referring to them as 'good neighbours and good partners'.
The focus of their discussions centered on economic and technological cooperation, with China expressing a desire to align development strategies more closely with Russia. This comes as Russia grapples with Western sanctions imposed due to its military actions in Ukraine, while China navigates tensions with the United States over trade and technology.
The two leaders' last regular meeting in August 2024 showcased the 'new vigour' and 'vitality' in their partnership. The Kremlin's emphasis on the importance of Mishustin's visit, without confirming a message from President Vladimir Putin to President Xi Jinping, further underscores the strength of their relationship.
Since signing a 'no limits' partnership in February 2022, Russia has sought China's support to mitigate the impact of sanctions. This has led to record bilateral trade, increased use of the yuan in settlements, and enhanced energy cooperation. The Power of Siberia 2 pipeline, which aims to deliver additional gas to China through Mongolia, has made significant progress, despite pricing concerns.
However, US sanctions have impacted China's oil purchases from Russia, causing a decline in trade. Chinese state oil majors have suspended Russian oil buys, and China's exports to Russia in September experienced a significant drop of 21% year-on-year. Despite this, China's imports from Russia grew by 3.8% in September, indicating a complex yet resilient trade relationship.
The recent commission meeting in Ningbo, chaired by Russian and Chinese officials, highlighted the growth in copper and nickel exports and improved access to farm goods, further showcasing the potential for increased cooperation between the two countries.
