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HEIHE: On China’s snowy border with Russia, a dealership that sells trucks has seen its sales double in the past year thanks to Russian customers. China’s exports to its neighbour are so strong Chinese construction workers built warehouses and 20-story office towers at the border this summer.
The border town Heihe is a microcosm of China’s ever closer economic relationship with Russia. China is profiting from Russia’s invasion of Ukraine, which has led Russia to switch from the West to China for purchases of a variety of products including cars. Russia, in turn, has sold oil and natural gas to China at deep discounts. Trade between Russia and China surpassed $200 billion in the first 11 months of this year, a level the countries had not expected to reach until 2024.
Russia’s war in Ukraine has also gotten an image boost from China. State media disseminates a steady diet of Russian propaganda in China and around the world.
Xi Jinping, China’s top leader, and Russian President Vladimir Putin have made numerous public demonstrations of the nations’ close ties. China’s exports to Russia soared 69% in the first 11 months of this year compared with the same period in 2021, before the invasion of Ukraine. “Maintaining and developing China-Russian relations well is a strategic choice made by both sides on the basis of the fundamental interests of the two peoples,” Xi said as he met Wednesday with Russian PM Mikhail Mishustin.
The biggest winners for China from the surge in trade with Russia have been its vehicle manufacturers. The sales helped China overtake Japan this year as the world’s largest car exporter. German manufacturers such as Mercedes-Benz and BMW used to be strong sellers in Russia, but they have pulled out in response to sanctions on the country.
The US has warned China against sending armaments to Russia, and has not yet uncovered evidence that it is doing so. But some civilian equipment China is selling to Russia, including drones and trucks, also has military uses. Beijing’s embrace of Russia has also provided a modest but timely boon to China’s construction industry. The economy has struggled to heal from scars left by three years of “zero Covid” policy.
The border town Heihe is a microcosm of China’s ever closer economic relationship with Russia. China is profiting from Russia’s invasion of Ukraine, which has led Russia to switch from the West to China for purchases of a variety of products including cars. Russia, in turn, has sold oil and natural gas to China at deep discounts. Trade between Russia and China surpassed $200 billion in the first 11 months of this year, a level the countries had not expected to reach until 2024.
Russia’s war in Ukraine has also gotten an image boost from China. State media disseminates a steady diet of Russian propaganda in China and around the world.
Xi Jinping, China’s top leader, and Russian President Vladimir Putin have made numerous public demonstrations of the nations’ close ties. China’s exports to Russia soared 69% in the first 11 months of this year compared with the same period in 2021, before the invasion of Ukraine. “Maintaining and developing China-Russian relations well is a strategic choice made by both sides on the basis of the fundamental interests of the two peoples,” Xi said as he met Wednesday with Russian PM Mikhail Mishustin.
The biggest winners for China from the surge in trade with Russia have been its vehicle manufacturers. The sales helped China overtake Japan this year as the world’s largest car exporter. German manufacturers such as Mercedes-Benz and BMW used to be strong sellers in Russia, but they have pulled out in response to sanctions on the country.
The US has warned China against sending armaments to Russia, and has not yet uncovered evidence that it is doing so. But some civilian equipment China is selling to Russia, including drones and trucks, also has military uses. Beijing’s embrace of Russia has also provided a modest but timely boon to China’s construction industry. The economy has struggled to heal from scars left by three years of “zero Covid” policy.
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