Unequal China-Russia partnership strives for balance against the West

Russian reliance on fossil fuels may act as a brake on Moscow hopes that growing trade with China can be a shield against Western sanctions

But there are advantages for both sides in strengthening economic cooperation beyond oil and gas deals

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China and Russia signed oil and gas deals worth an estimated US$117.5 billion as part of their pledge for closer economic cooperation. Photo: Bloomberg

Published: 9:00pm, 21 Feb 2022

Russia’s structural dependence on fossil fuels may hold back the trade partnership Beijing and Moscow are pushing as a hedge against US dominance, diplomatic observers say.

Their assessment follows a pledge by the Russian and Chinese leaders to look for new sources of growth in their comprehensive strategic partnership to counter increasing hostility from the West.

Russia, which has some of the world’s most extensive natural resources, is hoping its ties with the world’s second-largest economy can make up the shortfall in its European markets in the face of any sanctions that would follow an attack on Ukraine.

Beijing is also seeking to manage its deepening rift with Washington and its allies – which have been stepping up efforts to cut their technological and economic ties with China – by boosting innovation and pushing Chinese companies up the global value chain.

But plans to boost China-Russia trade in a bid to resist pressure from the West are hampered by the economic imbalance between the two countries, observers said.

Wan Qingsong, an associate professor at the Centre for Russian Studies at the Shanghai-based East China Normal University, looked into Russia’s role in global supply and value chains for a recent study published in the Journal of Eurasian Economy.