Russian President Vladimir Putin’s two-day visit to Beijing, aimed at improving trade ties between the two countries, came at a time of increased economic pressure from the United States (US) against China. On the second day of his visit, Putin visited Harbin, the capital of Heilongjiang province in northeast China, which borders Russia. Speaking at an industrial forum there, Putin focused on trade and emphasized the “inseparable” partnership between the two countries as a guarantor of energy security. The Russian leader also laid flowers at a memorial to Soviet soldiers who died during the liberation of northeast China from Japan in the 1940s.
Prior to the visit, it was said that Putin would brief Chinese President Xi Jinping on the “Ukraine Crisis”. The Chinese President stated that Beijing and Moscow agree on the need for a political solution to the Russian-Ukrainian war, but did not elaborate. China’s peace proposals announced in 2023 were criticized by both Kiev and its Western allies.[1]
Relations between China and Russia have become a very important issue in the context of international relations. Especially in the recent period, it has become remarkable to evaluate these relations through arms trade and economic cooperation. Some scholars argue that China does not directly supply arms to Russia, but assists in the procurement of critical components. In this context, it is argued that China supports Russia’s defense industry and helps Russia develop its military technologies. This is particularly relevant for the export of dual-use products used to support Russia’s defense industry.[2]
China has been increasing its trade cooperation with Russia. Increases in trade volume are associated with Russia’s turn to China as an alternative supplier after the Western sanctions. The export of a significant portion of Russia’s oil and gas to China constitutes an important dimension of this trade relationship. However, it is argued that this relationship is unbalanced and that Russia is more dependent on China. China’s demand for energy resources from Russia may cause Russia to become economically vulnerable.
This dependence can be observed in the increase in trade between China and Russia. After Western countries imposed sanctions on Russia, Beijing has become Moscow’s most important supplier of automobiles, clothing, raw materials and many other products. According to official Chinese figures,[3] trade between China and Russia has increased by more than 64% since 2021, reaching $240 billion (£191 billion) in 2023. The figures show that Russia’s imports from China amounted to $111 billion, while its exports to China amounted to $129 billion. In May 2024, Xi and Putin met in Beijing and underlined that the two countries now use their own currencies for 90% of trade, rather than the US dollar.
Putin also said that he would be pleased to see Chinese automakers in Russia after the US quadrupled its tariffs on Chinese electric vehicles to 100%. Exports of Chinese cars and parts to Russia reached 23 billion dollars in 2023, up from 6 billion dollars the previous year. Putin spoke of “large-scale joint projects” between the two countries, including plans to jointly build airplanes and helicopters.
“Russian natural gas fuels a large number of Chinese households and Chinese-made cars run on Russian roads,” Chinese Foreign Minister Wang Yi said in March 2024. So how much oil and gas does China buy from Russia? Almost half of Russia’s annual revenues come from oil and gas. Russian sales to the US, UK and EU countries have fallen since the invasion due to sanctions. A significant part of this deficit has been made up by increased sales to Asia, especially China and India. In 2023, Russia overtook Saudi Arabia to become China’s largest crude oil supplier. Beijing imported 107 million tons of crude oil from Moscow. This was a 24% increase compared to 2022.
The G7 group of developed economies, along with the EU and Australia, also tried to limit Russia’s gains by imposing a worldwide cap on the price of oil transported by sea. However, China continued to buy Russian crude oil above the ceiling price. India, which has maintained a decades-long relationship with Russia, has also been a major buyer of Russia’s discounted oil since the invasion. According to India’s state-controlled lender Bank of Baroda, Russia’s share of India’s total oil imports reached a record high of 44% in June 2023. China also imported eight million tons of liquefied petroleum gas (LPG) from Russia in 2023, a 77% increase compared to 2021.
Speaking at a trade fair in Harbin on the second day of his visit to China, Putin said that energy ties will continue to grow and that Russia is ready to supply China with clean energy. Moscow hopes to make progress towards finalizing a new pipeline deal, dubbed “Power of Siberia 2”, which would export natural gas from Russia’s Siberian region to China’s northeast. China already receives gas from Russia through the original “Power of Siberia 1” pipeline, which has been in operation since 2019.[4]
Relations between China and Russia are an issue that needs to be analyzed in depth in the context of international relations. Especially recently, both the economic cooperation and political dimensions of these relations have gained importance in terms of global dynamics. Putin’s recent visit to Beijing came at a time when the US warned China against supporting Russia’s military industrial base. This visit aims to improve trade ties between the two countries. As Putin emphasized during his visit to China, increasing trade and strengthening the partnership on energy security is an important step. The increase in trade between China and Russia is mainly attributed to Russia turning to China as an alternative supplier in the face of sanctions from Western countries. This increase in trade is seen in a wide range of sectors, from energy resources to the automotive sector.
In conclusion, the increase in China’s oil and gas imports from Russia can be regarded as a sign of a deepening cooperation in the energy field. Especially projects such as the finalization of a new pipeline agreement called “Power of Siberia 2” are an important indicator of this cooperation. However, there are concerns that relations between China and Russia are unbalanced and that Russia is becoming more dependent on China. How these relations will shape up in the future is an issue that needs to be carefully monitored in terms of global politics and security.
[1] “Putin arrives in China’s ‘Little Moscow’ as allies aim to deepen trade”, BBC, https://www.bbc.com/news/live/world-asia-69001137, (Date of Access: 24.05.2024).
[2] “How is China supporting Russia after it was sanctioned for Ukraine war?”, BBC, https://www.bbc.com/news/60571253, (Date of Access: 24.05.2024).
[3] Ibid
[4] Ibid.
