Wednesday, March 22, 2023

In numbers… Trade and economic relations between Russia and China

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Chinese President Xi Jinping will arrive in Russia next week for a visit that will last for several days, and it is expected that the economic aspect will take a large part of this visit.

According to the Kremlin, the Chinese president’s visit will take place from March 20 to 22, and comes at the invitation of Russian President Vladimir Putin.

China is a strategic partner in all political, economic and commercial aspects of Russia, and the largest buyer of Russian energy resources, while Russia imports a wide range of goods from China, including cars, and the following is an overview of the trade and economic relations between the two countries:

Trade exchange rose to a historic record level

Trade volume between Russia and China in 2022 increased by 29.3% year on year and reached $190.27 billion, which is a historical record.

Trade shows steady growth between the two countries, which indicates the strength of relations between Moscow and Beijing, and Russia represents 3% of China’s total foreign trade volume.

Last year, exports from China to Russia rose by 12.8% to $76.12 billion, while exports from Russia to China rose by 43.4% to $114.15 billion.

The data shows that the balance of trade is weighted in favor of Russia, which mainly exports energy resources to China, and supplies of oil and gas through pipelines, liquefied natural gas and coal represent about 70% of the total volume of supplies to China.

China also imports metal products, wood, agricultural products and seafood from Russia, while China exports electronics, cars, clothes, shoes and consumer goods to Russia.

With regard to the year 2023, the data indicated that trade exchange grew in January and February of this year at a remarkable pace, and according to the data, Chinese exports to Russia jumped by 19.8% in the two months to $15 billion, while exports from Russia to China grew by 31.3% to 18.65%. Billion dollar.

Russia and China will set a new target for trade

Russian President Vladimir Putin and Chinese President Xi Jinping set a goal to increase bilateral trade between the two countries to $200 billion by 2024.

And the results of trade for the year 2022 indicate that the goal set by the presidents of the two countries will be achieved before 2024, so experts expect that a new goal for trade exchange will be set during Xi’s visit to Russia next week.

Energy relations between Moscow and Beijing are mutually beneficial

The Russian Ambassador to China, Igor Morgulov, stated that the trade and economic relations between Russia and China in the energy sector are of a strategic nature and are mutually beneficial.

The diplomat said, earlier: “Our cooperation in the energy sector does not depend on current geopolitical factors, it has its own history and future.” He noted that the projects jointly implemented by the companies of the two countries will contribute greatly to the growth of bilateral trade, and will also contribute to ensuring the energy security of Russia and China.

Russian crude oil and fuel oil exports to China jumped to record levels last January, after the world’s largest energy importer reopened its economy and abandoned the “zero Covid” policy.

According to the data company “Kpler”, the total flows of crude oil and fuel oil during last January reached their highest levels and exceeded the record recorded in April 2020, and Russia’s total exports of crude oil and fuel oil to China reached 1.66 million barrels per day last January.

Russia and China agree… Gas “Power of Siberia” in rubles and yuan

Last year, the Russian company “Gazprom” and the Chinese company “CNPC” (CNPC) agreed to convert payments for gas supplied through the “Power of Siberia” into rubles and yuan, which is an important indication of the two countries’ intention to move away from the dollar.

The “Power of Siberia” is a gas pipeline aimed at pumping natural gas from fields in the Russian Far East to China, and supplies through it to China began on December 2, 2019.

In early February 2022, “Gazprom” signed a second long-term contract with the Chinese company “CNPC” (CNPC) for the supply of blue fuel via a new route “Power of Siberia-2” (a project planned for its launch) through Mongolia that will allow to increase natural gas exports to China by another 50 billion cubic meters annually.

Chinese investments in Russia

China attaches great importance to investing in the Russian Far East region due to its geographical proximity to China. According to media reports, the volume of Chinese investments in the Russian Far East exceeded the level of $13 billion in 2022. China participates in many projects in the Far East region of Russia

 

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