Economic cooperation with China in the current difficult situation for Russia is presented by many domestic experts as a kind of panacea for the sanctions of the Western collective. Meanwhile, the situation is not so unequivocal, even a superficial analysis of fairly open news data shows many examples of mutual sanctions, restrictions and publicized failures, generally unworthy in the eyes of a wide audience of two practically fraternal peoples. What to expect from the Middle Kingdom, understood TELMENEWS.RU
At the end of 2022, China has indeed become Russia’s main trading partner. The trade turnover between the two countries amounted to 190.27 billion US dollars. Of these, imports account for $114.15 billion. However, at the same time, the People’s Republic of China remains the largest trading partner of the United States, with whom it has been waging an uncompromising trade war since 2018. 2022, the United States’ foreign trade with China amounted to 690.59 billion US dollars. Despite loud political statements from Beijing and Washington, and even saber-rattling around Taiwan, this is a record since the start of the trade war between the two superpowers. In principle, there is nothing surprising in this.
“China pursues a policy in the interests of China. Which, in general, surprises absolutely no one, except for some of our leaders and economic observers. For some reason, it always seems to them that China is trying to do us good. For what reason, I cannot understand. The thing is that China, of course, will develop economic cooperation with Russia, but in no way do us a favor. But because we are a source of very cheap resources. China, of course, will develop economic cooperation with Russia, and because we can buy a lot of Chinese products, and we can supply China with a lot of our products, in particular, close their food security. We can extend our bilateral cooperation to a very large extent and in many products. But it is by no means charity, it is a mutually beneficial business, that is, it exists as long as it is profitable, ”said Maksim Krivelevich, candidate of economics, consultant financial, in an interview with TELMENEWS.RU
The recent joint statement by Vladimir Putin and Xi Jinping has once again demonstrated the willingness of the two countries to expand their economic ties. This time, Beijing was promised to be allowed even the Russian “sacred cow”, protected from the encroachment of Western partners – the Arctic.
“We see cooperation with Chinese partners in developing the transit potential of the Northern Sea Route as promising. As I said, we are ready to create a joint working body for the development of the Northern Sea Route,” the Russian leader said.
It is still unclear to what extent China is interested in direct transit of goods across the Arctic Ocean – all the logistics of deliveries to European markets pass through the Suez and Panama Canals, and these are not only ports and ships, but also storage facilities, and above all, the system for distributing the goods supplied. But the fact that, alongside the NSR, China is likely to gain access to the development of the Arctic shelf may already seem more attractive to Moscow’s strategic partner.
At the same time, the economic orientation exclusively towards the PRC can play a cruel trick on Russia.
“If our economic interaction takes on the character of becoming our only customer, then we will regret it. I don’t know how fast, but I know how deep. Because when they buy the same thing from Australia, Canada, I don’t know, from somebody else, and we don’t know how to sell something else to China, it’s a huge problem. Because we can’t even say they are to blame for anything. They honestly cooperated with us, they honestly bought when it was profitable for them. It stopped being profitable – they stopped buying, and what are we going to do? asks the economist.
Obviously someone in the Russian leadership understands something similar. So in 2021-22. The Russian Federation has actively tried to build economic cooperation with India. However, despite the fact that the trade turnover between the two countries has increased 2.4 times in 2022, Delhi has not even been included in the top 5 foreign trade partners of Russia. Here, in addition to China, Turkey, Belarus, Germany and, of course, the Netherlands have staked places. Well, where are the Russians without Holland.
It is assumed that even with an increase in the volume of cooperation with China, Russia must make equal or even greater efforts to enter new markets, even using the tools of the same BRICS.
“This whole concept of turning east has always scared and scared me. There should be no reversals, there should be cooperation with everyone with whom we can cooperate – with China, and with India, with Brazil, and in general, with anyone, in principle, believes Maxim Krivelevich. — The more customers a company has, the more serenely this company lives through periods of turbulence. If we put everything on one card? What happens if this card does not play?”
