Russian Prime Minister Mikhail Mishustin began his visit to China on Tuesday and will continue on Wednesday, during which he attended a high-level business forum between the two countries in Shanghai, announcing his country’s efforts to transfer the trade with China to higher horizons, beyond the traditional fields, as he described it.
Two experts in the fields of economics and international relations see this visit as another step towards the creation of an unprecedented alliance which, if continued, is capable of changing the shape of the economy and the rules of the game in the world.
From what Mishustin said during the visit and the Shanghai Forum:
• Bilateral trade is expected to reach $200 billion this year.
• We will increase trade in energy, agriculture, finance and industrial cooperation.
• Energy cooperation remains an unconditional priority for Russia, and supplies of natural gas and coal continue to increase.
• Russia and China need to be more proactive in facilitating mutual access to agricultural markets and working together to improve food security.
• Last year, trade in agricultural products increased by 42 percent, amounting to approximately $7 billion.
growth indicators
Trade between China and Russia rose 38.7 percent in the first quarter of this year, according to the General Administration of China Customs. Energy cooperation remains a major stabilizing factor for bilateral relations. China has become a profitable front for Russia, especially in the export of oil and gas, after Russian exports to Europe declined following sanctions imposed on Moscow due to the war in Ukraine. China’s exports to Russia amounted to $24.07 billion, up 47.1 percent from a year earlier. Russia’s imports to China reached $29.77 billion, up 32.6%. China imports oil, natural gas, coal, copper, copper ore, timber, fuel and seafood from Russia. Russia imports smartphones, industrial equipment, toys, shoes, vehicles, air conditioners, computers, mechanical and electrical products, cars and auto parts from China.
Exchange in local currencies
According to a report published by the Russian Central Bank, there is trade between the two countries using local currencies.
In detail, the bank’s data indicates that the share of the Chinese yuan exchanged against the Russian ruble in the Russian foreign exchange market has reached a new high, increasing by 39% in March, and during the same period, the share of the US dollar against the ruble fell to 34%, the lowest level for several years.
“Mighty Force” Opportunity
In an exclusive interview with Sky News Arabia, economist Majid Javid and international relations expert Jassim Matar outline what they expect from the future of the global economy in light of the new relationship between China and Russia :
Russia’s energy sector has been hardest hit by Western sanctions on Moscow, which sought to offset the Western market, and found China a starving market for its gas and oil raw materials. Besides the energy sector, trade between the two countries in automobiles and electronics was active, and Chinese automakers invaded the local market in Moscow. Chinese mobile phone companies have also emerged strongly in Moscow, and have become a good alternative to the iPhone, which occupies an important position in the Russian market. If the volume of trade between the two sides continues in this way for several years, they can create a powerful economic force that will surpass any existing economic alliance. Both parties have the appropriate capabilities to do so. Both countries, if they harness the capabilities of the other, can create an economic force that strikes at the competing political power that controls trade and the global economy.
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