There is a lot to be said for China and Russia trading with each other, and the two countries are certainly upping their game. China imports 56.6% of Russia’s raw materials and energy, while Russia supplies China with gas and grain. Read on to find out how trade between China and Russia is growing. You’ll be amazed at the potential for growth! We’ve compiled a list of the best things that you can import from Russia and what they’re selling to China.
Russia’s up
Assuming that the situation remains the same, the European Union is reportedly planning to impose sanctions on Russia and cut its purchases of Russian crude oil and coal before the end of 2022. A similar ban was placed on imports of Russian coal earlier this year. The oil embargo is the centerpiece of the sixth set of EU sanctions on Russia, including the relocation of Hungary’s embassy from Lviv to Kyiv.
China and Russia have been growing closer in recent years and have established themselves as important trading partners. Both countries have recently imposed sanctions on each other for annexing Crimea, but this did not seem to deter Chinese imports of Russian products. In 2018, the two countries’ total trade volume increased 35 percent, to $146.9 billion. And Russia is now China’s second-largest oil supplier after Saudi Arabia. In fact, Russian oil accounts for about 15.5% of China’s imports.
Oil and gas production in both countries increased by over five percent in 2000. In 2000, oil sector expenditures increased by 56.6%, while Russian oil exports increased by 13.8 percent. The growth in energy consumption has been linked to the growth of private car ownership, the growing number of people using cars, and a large build-up in underground storage. Natural gas production is still heavily restricted in Russia, however, and there are concerns that a potential shortage in supply could hamper its growth.
Despite the recent financial crisis, Russia is beginning to show signs of recovery. Its GDP increased modestly in 1997 but contracted by 4.9 percent in 1998. According to the Russian Economic Trends, an index compiled by the CRS using Goskomstat data, Russia has shown signs of recovery. Similarly, the European Bank for Reconstruction and Development’s Strategy for Russia, released in December 1998, Russia is expected to grow by another 4.9 percent by the end of 1999.
The situation is far from over. The situation will only worsen if Russia fails to make payment on its sovereign Eurobonds. According to a source familiar with the payment process, the money had been transferred to its creditors. Two of its bondholders confirmed that the payments had been made. Furthermore, a senior U.S. official said that Moscow made the payment without using frozen U.S. reserves.
Russia’s gas
Chinese imports of Russian energy are expected to jump three-fold by 2021, from 15.5% of total consumption to almost 56%. China already has strained supply chains, and it would be difficult for the country to risk alienating its current supply partners. Moreover, China and Russia are already competing for the same markets, so the move to buy more Russian energy could create more tensions.
Russian oil is the largest supplier of oil in the world, accounting for a quarter of European Union oil imports and nearly 15 percent of total imports of Chinese oil. Gas from Russia accounts for 40 percent of European Union needs, with Germany and Italy heavily dependent on Russian exports. China currently relies on a single pipeline to import gas from Russia, but a second pipeline is under construction in attractive concessions. Nonetheless, the surge in prices will dampen both investment and consumption in both countries.
China and Russia: The two countries are proving themselves to be important partners in the international economy. China imports a record amount of Russian goods each month, and despite Western pressures, it defies sanctions to protect its interests. While Russia is under international sanctions for alleged crimes against its citizens, the import of raw materials and energy from Russia has grown by 56.6% in April alone, and is on track to surpass $57 billion in 2019.
China and Russia: a growing partnership between two major economic powers – the world’s largest economy – are pursuing ambitious trade aims. Both countries’ trade has increased by more than 50% in the past three years, and last year, the two nations’ exports surpassed their imports by $10 billion. This trend is likely to continue for the next few years.
Despite sanctions, both countries can still trade with each other in their own currencies. Russia’s imports are still largely in dollars, but China has been working to increase trade in its own currency. Its biggest source of foreign exchange is Russia, and China could theoretically ease Russia’s economic pain. However, there are certain risks associated with such a deal. If markets remain unsteady, this strategy may backfire. There is the risk of mounting inflation, and a Covid-19 outbreak could complicate the timing.
Russia’s grain
China and Russia have been expanding their trade relations in recent months, and last month saw a record import of Russian products. Although the two countries are facing growing sanctions from the West, China has remained steadfast in its support for its Russian neighbor. In March, China announced it would allow Russian crude oil to be imported to China. Chinese crude oil imports accounted for 15% of China’s total imports, and Russia’s ESPO blend accounted for one fifth of supply at private refineries in Shandong province.
In the early 1990s, Russia began a program of reform to boost its economy. This reform involves combining primary production with processing and distribution. It also relies on de facto soft credit for agriculture. Although Russia lacks the infrastructure to increase productivity, it is a potential grain exporter. An ambitious reform program would boost Russia’s comparative advantage, meaning that the cost of goods would fall uniformly.
Under current sanctions, China and Russia will find it harder to maintain economic engagement, but it could do so by allowing Russia access to its yuan reserves. Russia has $90 billion in yuan reserves, which represent 14% of its foreign exchange reserves. Alternatively, Beijing could allow Russia’s central bank to sell yuan assets, exposing China to sanctions.
China and Russia have become increasingly close trading partners. The trade between Russia and China jumped 35.9% last year, and trade is expected to reach $146 billion in 2021. The bulk of Russian exports to China are raw materials and energy. Furthermore, China’s imports from Russia exceeded its exports last year, making Russia an important source of oil and gas. While this trade relationship has many benefits, both countries still face challenges.
The oil sector in Russia was booming in 2000. GDP rose by 6.0 percent to 323.2 mmt in 2000, while oil production increased by 56.3 percent in 2000. At average exchange rates, oil expenditures were converted into dollars. Russia brought online 20 new small fields in 2000, but access to international markets remains limited. A lack of foreign investment has also made Russian oil production even more expensive than in 2000.
Trade between China and Russia
Beijing must be thrilled with the prospect of a booming trade between China and Russia. Not only can China use some of Russia’s energy supplies, but it could also use some of its agricultural products and raw materials. By giving Russia a trade outlet, the United States is thwarted and Beijing could turn Russia into a tributary state. That would be a good thing for both countries.
As the renegotiation of their currency rates is taking place, China and Russia have also started to trade in Yuan. In the first half of 2021, Yuan settlements accounted for 28% of China’s exports to Russia, up from 2% in 2013. As the two countries seek to reduce their reliance on the dollar, they have begun to develop their own cross-border payment systems.
In recent years, China and Russia have cultivated closer ties. Russia serves as a major source of oil and is a major trading partner. Last year, China’s total trade with Russia rose by 35.9%, with oil and gas accounting for 56.6% of total imports. Despite the trade surplus, the two countries’ economic relationship continues to grow.
The West is pushing China to distance itself from Russia, and this may help both nations in the long run. Despite the sanctions imposed on Russia for its invasion of Ukraine, China and Russia are making a big push towards economic relations. And they’re not afraid to take advantage of each other’s market. The Chinese government is in favor of normal trade and is committed to increasing the value of its imports.
Despite sanctions against Russia, China is still importing a significant amount of oil and natural gas. China imports roughly 11 million barrels of oil and natural gas each day. Moreover, the two nations have comparable relative proportions. And if Russia is forced to cut back on oil and gas sales to Europe, China could theoretically absorb any of these lost sales.
