China says relations with Russia at 'best level in history' - CNN
Recent partnerships between Beijing and Moscow belie the rivalry that defines their relationship, political strategists warn. The deepening of military ties between these two former rivals is real, and a stronger Why Russia and China Are Strengthening Security Ties. The China-Russia relationship, of course, has been helped along by a And the architect of that move, master political strategist Henry.
It appears that Russia turns to the Chinese when it needs cash. In the mutual trade turnover increased 7.
China and Russia: new BFFs thanks to an insecure US | This Week In Asia | South China Morning Post
The aggravation of relations between Russia and Western countries has contributed to the expansion of economic ties with China. Russia has a negative trade balance with China: The share of China in foreign trade of Russia grew from Since China is the largest trading partner of Russia. The main categories of imports to Russia from China are machinery and equipment At the Russian-Chinese summit held in Shanghai, Vladimir Putin and XI Jinping stressed that "Russia and China stand for the transformation of BRICS into a mechanism of cooperation and coordination on a wide range of global financial, economic and international political problems, including the establishment of a closer economic partnership, the early establishment of the BRICS development Bank and the formation of a; for the expansion of joint efforts of representation and voting rights of States with emerging markets and developing countries in the system of global economic governance, for the formation of an open world economy; for the deepening of cooperation in the field of foreign policy, including in the settlement of regional conflicts".
The purpose of this agreement is to facilitate financial transactions in the regions. Central banks, with whom China has signed currency swaps, can issue loans to their banks in yuan. Currency swaps will make the ruble and the yuan more stable, which in turn will have a positive impact on the stability of the global financial system.
Also, the expansion of currency trading should facilitate investment processes. By investing in an economy that is now facing certain problems due to the fall of the ruble and oil prices, China is carrying out soft expansion and supports one of its main partners. China and Russia have long advocated reducing the role of the dollar in international trade.
The goal is to create conditions for the development of bilateral trade and mutual investment, do not have to buy currency in the market. A logical step, given the closure of foreign capital markets, the growth of mutual trade and long-term contracts for the supply of Russian energy to China.
The move away from the dollar seems justified in terms of reducing exchange rate risks. The rate of de-dollarization chosen by the countries is due to the rapid growth of the RMB's share in international payments and settlements Oct.
In China initiated the creation of the economic zone - the "New silk road". This project is designed primarily to strengthen economic ties and cooperation, attract investors from Asia and other parts of the world to actively participate in the creation of the "silk road economic belt of the XXI century".
An important role in the financing of these projects should be played by the creation of the AIIB, to which Russia is a party. In recent years, China and Russia have stepped up cooperation in the construction of cross-border infrastructure. New Eurasian transport routes are being built: In northeast China and the Russian far East, both countries are actively promoting the construction of bridges, ports and other projects.
The countries should take advantage of a unique opportunity, and by combining the development programs of the two States, to achieve joint development and prosperity. It is the creation of the EAEU that will serve as an important platform for multilateral cooperation in the region, as all participants are good neighbors and partners of Russia, as well as traditional partners of China.
Russia is interested in creating a free trade zone of the EAEU and China, as well as the use of the national currency in this region. China's fast-growing economy places increasing pressure on itself to secure energy imports, while Russia's economy is largely driven by the demand for the export of natural resources. China became a petroleum importer for the first time inhad become the world's second-largest oil consuming country as ofand the world's largest overall energy consumer as of The group also forecast that natural gas consumption would rise History[ edit ] The official relationship between the People's Republic of China and the Russian Federation has been upgraded three times since the establishment of diplomatic relations in The project stalled in Octoberwhen Yukos chief executive Mikhail Khodorkovsky was arrested on charges including tax evasion and fraud, and the Russian government launched an immediate investigation into the company.
Khodorkovsky had been a vocal opponent of President Putin. Khodorkovsky's arrest, China Foreign Ministry spokeswoman Zhang Qiyue publicly announced that the Kremlin investigation would not impact the proposed China-Russia oil pipeline project.A wary embrace: What the China-Russia relationship means for the world
The Kremlin had begun auctioning off the troubled company's operating assets a month prior in August. This financing was reportedly secured by long-term oil delivery contracts between Rosneft and the CNPC. The Foreign Ministry could not confirm whether there were any "loans" involved, ministry spokesman Kong Quan said. In the same month, CNPC agreed to a set of principles establishing future joint ventures with Rosneft.
Two years prior, Gazprom acknowledged in an annual shareholder report a plan for supplying natural gas to China. Two routes, roughly equal in capacity, would be constructed, with a total volume of 68 billion cubic meters of gas per annum.
An Altai pipeline would link West Siberian fields with the Xinjiang Uyghur Autonomous Region in western China, while the eastern pipeline would run from Yakutia into northeastern China. Since then, however, its rate of growth and more sustainable energy profile compared to oil inevitably led to a surge in Chinese natural gas imports.
In Septemberthe Russian Federation Industry and Energy Ministry approved a development plan for an integrated gas production, transportation, and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries.
Russian policymakers, however, have expressed reserve about increased Chinese influence in the energy sector. Growing Chinese investment is speculated to be about more than energy security for China. These forces are still marginal in both countries, however, and play no significant role. The most common of these myths suggest China is expanding demographically into Eastern Russia, the two countries are at odds in Central Asia, and Beijing is trying to intimidate Moscow with its disproportionate economic might.
None of these is true. US policy for the region has the potential to breed the same sort of chaos as it did in Libya and Iraq. Of course, Russia finds the growing economic imbalance with China unpleasant and knows that it must work quickly to spur its own economic growth. But even if that gap continues to widen, it does not automatically increase the threat from China. It all depends on the nature of bilateral relations between Russia and China, and for now, those relations are deepening.
This trend will continue, thanks in large part to the extremely hostile approach the US has taken towards both countries. The US has long been accustomed to profiting from its global economic dominance, but its influence is declining, even as the relative influence of other centres of power, including Russia and China, is growing. In an effort to maintain its position in the world, the US continues to behave like a hegemon and becomes increasingly embittered by the resistance it encounters.
Sino-Russian relations since 1991
The current period — in which the US must learn painful lessons in the school of multipolarity — will be particularly dangerous. Russia and China are the main instructors in this school, a role that strengthens the bonds between them. These ties, however, are unlikely to lead to a formal alliance that includes mutual defence obligations.
There are three historical precedents for such alliances, and all three failed.
Obviously, Russia and China are just too large and too powerful to become shackled by such far-reaching mutual commitments. In response to Western anti-Russian sanctions, Russia granted Chinese investors access to its energy sector, concluded deals for the sale of its most modern weapons, and established closer military cooperation with China.
As a result, China might begin importing more soy from Russia and investing in soybean production in the Russian Far East. Many more examples exist. Thus, Russia and China would have continued improving cooperation even in the absence of outside pressure, but the US sanctions and tariffs are actually serving to accelerate and deepen their rapprochement.