China and Russia wrapped up an incredible year of teamwork, reaching the pinnacle of collaboration at their annual year-end meeting. Their steadfast commitment to strengthening ties across various fronts aligns perfectly with the recent milestone they achieved: bilateral trade surged beyond $200 billion in the first 11 months of the year, a goal originally set for 2024 by leaders Xi Jinping and Vladimir Putin back in 2019.
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Even in the midst of geopolitical twists and turns, their economic partnership not only endured but thrived. Despite the controversies surrounding Russia’s 2022 invasion of Ukraine, trade hit an impressive $190 billion in 2022, highlighting the resilience and bright future of their cooperation.
China-Russia Trade Hits Record $218.2 Billion
In their recent meeting, President Xi underscored the importance of building on political trust and expanding collaboration in economy, trade, energy, and connectivity. China, as the globe’s second-largest economy, played a crucial role as a lifeline for Russia when sanctions came into play following the invasion. Despite accusations of supporting Russia’s war efforts, Beijing stuck to its guns, maintaining a stance of neutrality and a call for peace.
For Chinese leaders, Moscow acts as a strategic counterbalance against a confrontational West. While Western sanctions persisted, China not only stood by Russia but also strengthened its economic ties, emerging as a vital supplier of consumer goods and significantly boosting energy purchases from its northern neighbor. In this intricate dance of diplomacy, China’s role as both ally and economic partner continues to play a pivotal part on the global stage.
Chinese customs data unveiled earlier this month marked a historic milestone, revealing that China-Russia trade skyrocketed to an unprecedented nearly $218.2 billion in the first 11 months of 2023. While this figure is impressive, accounting for just 4% of China’s colossal $5.41 trillion global trade during the same period, it symbolizes a robust partnership that is shaping the international economic landscape.
Trade Milestone:
- $218.2 Billion Trade (Jan-Nov 2023)
- Represents 4% of China’s $5.41 Trillion Global Trade
A Year of Significant Meetings and Ground-breaking Moves
The collaborative spirit between the two nations extended beyond the economic realm during Prime Minister Mishustin’s two-day visit, which featured a high-stakes, year-end meeting co-chaired with Chinese Premier Li Qiang on Tuesday, December 26, 2023. The agreements forged encompassed a wide spectrum, from fortifying trade and transportation to advancing ecommerce and customs procedures. Additionally, the duo pledged to intensify collaboration in developing Arctic shipping routes, aircraft manufacturing, space exploration, and satellite navigation, as disclosed by China’s Foreign Ministry.
In a separate arena, the Chinese and Russian militaries engaged in regular consultations, sealing their commitment to “improve the level of strategic coordination” and contribute to peace and security in the region and globally. This information was disclosed by China’s Ministry of Defense.
Diverse Collaboration Areas:
- Trade and Transportation Political Trust
- Economy
- Trade
- Energy
- Connectivity
- Ecommerce and Customs Procedures
- Arctic Shipping Routes, Aircraft Manufacturing, Space Exploration, Satellite Navigation
Mishustin, in these dynamic engagements, celebrated the “centuries-old friendship between the Russian and Chinese peoples,” affirming that relations between the neighbors had soared to “the highest level ever.”
The past year witnessed two significant face-to-face meetings between Xi and Putin, both leaders having limited overseas travel in the preceding two years. Xi, in a groundbreaking move, chose Moscow for his first overseas visit shortly after commencing his third term as China’s President. In return, Putin made a rare journey to Beijing in October, where he was honored as the guest of honor at a forum commemorating Xi’s Belt and Road infrastructure initiative.
In a year-end live broadcast, Putin showered praise on the China-Russia relationship, deeming the level of cooperation “unprecedented” and foreseeing a remarkable 30% surge in trade compared to the previous year. According to a Kremlin transcript, Putin emphasized the deep involvement of the Russian and Chinese governments in achieving shared goals, underscoring the swift, steady, and confident progress of their collaborative efforts. The success story of Russia and China teaming up unfolds like proof of their shared goals and dedication, paving the way for a future filled with mutual success and global impact.
Diplomacy Soars to Unprecedented Heights
In more down-to-earth terms, as per the Russian government’s press service, Prime Minister Mishustin passed on his condolences to Xi for the recent earthquake that hit northwestern China, taking the lives of at least 131 people. Fast forward to 2023, Mishustin pointed out the grit and impressive growth in trade and economic teamwork between Russia and China, hitting a whole new level.
“The trade back-and-forth racked up to almost 18 trillion rubles or 1.5 trillion Chinese yuan.” Mishustin confirmed the accomplishment, saying, “You’ve mentioned that already. We nailed the task you and President Putin set for us.” This achievement reached its peak with Mishustin emphasizing the switch to using national currencies in their dealings, with over 90% of transactions now happening in rubles and yuan.
The triumph extended into the investment sector, where Mishustin noted the success of 80 joint projects totaling almost 20 trillion rubles, or about 1.6 trillion yuan. Premier Li echoed this sentiment, stating that China-Russia relations have continued to operate at a high level, marked by increased political mutual trust, deepening people-to-people friendship, more robust practical cooperation, and enhanced international coordination.
As these two strategic allies approach 75 years of diplomatic ties in the coming year, they further solidified their collaboration by signing cooperation documents in customs, inspection and quarantine, market supervision, and various other fields. The narrative of their achievements paints a vivid picture of a resilient and flourishing partnership that has not only weathered challenges but has ascended to new heights, defining the trajectory of China-Russia relations in the global landscape.
