Vladimir Putin hails China-Russia ties as trade beats US$200 billion target, defies Western sanctions
- Russian President Vladimir Putin had high praise for the escalation of bilateral relations with China in an annual news conference
- Trade surpassed a previous target of US$200 billion after biting sanctions levied in the wake of Ukraine invasion
Russian President Vladimir Putin hailed his country’s deepening cooperation with China on Thursday and raised expectations of further bilateral trade and investment in the future, in defiance of grave concerns from Washington and Brussels over their continued strengthening of ties.
“This is a very decent level,” the Russian president said, according to an English transcript posted online.
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Putin, whose country has faced far-reaching Western sanctions since its invasion of Ukraine in February 2022, said Russia and China are steadily progressing economic ties “across the board”, particularly in infrastructure construction and hi-tech industries.
Tensions with the United States and its allies over the Ukraine war have pushed the two countries closer. China has replaced Europe as Russia’s biggest energy buyer, while Russia’s reliance on Chinese products has also increased.
In the first 11 months of the year, bilateral trade rose 26.7 per cent compared to the year prior. Cumulative trade value hit US$218.2 billion on the back of Beijing’s increased appetite for energy, China customs data showed.
But Russia’s purchasing power has been on the decline since the second half of the year as the war weighs on its economy and the rouble continues to depreciate, according to Chinese exporters and freight forwarders.
As the two countries cement their relationship, China risks further raising the ire of the US and Europe – both of which are more important trade partners.
We Europeans do not understand why China sides with Russia
China’s relationship with the European Union has also deteriorated due to China’s perceived support of Russia.
“What could the EU and China do to move [their relationship] forward? I think the overall answer is not much,” said Pascal Lamy, former director general of the World Trade Organization.
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“We Europeans do not understand why China sides with Russia,” the French political consultant and businessman said in a speech at the headquarters of Beijing-based think tank Centre for China and Globalisation on Wednesday.
Putin, meanwhile, described China-Russia relations as a major factor in global stability.
“Yes, we are engaged in military, economic and humanitarian cooperation, but we are not creating any blocs,” he said.
“Our friendship is not directed against third countries – it is aimed at benefiting ourselves, but not at harming anyone.”
After alleging the West is trying to “use its friendships against third countries” in his answer to a question about relations with China, he concluded with stern words.
“We are closely monitoring their actions and will be sure to respond together, effectively and promptly. No one should have any doubt about this.”
