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Russia has built a strong bond with China. All the American barriers didn’t help

Date: March 28, 2024 Time: 19:45:28

Russian nesting dolls in the Celestial Empire have learned to do, but it is difficult to find an alternative to Russian gas and wood – the demand for them is growing.

Photo: Viktor GUSEYNOV

THEY NEED OUR OIL

Russia and China are now not only brothers forever, but also the main trading partners. Last year, our countries set a new record in terms of trade: $190.3 billion worth of goods were shipped, almost a third more than in 2021. At the same time, the flow from Russia to China grew much more actively than in the opposite direction. We deliver 1.5 times more goods to China than we receive (see chart).

“The number one position in Russian exports is energy, mainly oil and gas,” Andrey Ostrovsky, head of the China Economic and Social Research Center at the Far Eastern Institute of the Russian Academy of Sciences, told Komsomolskaya Pravda. – Everything that did not go to the West went to China.

But it did not turn out that from China, again to the West? There is such a conspiracy theory that Europe, having gone too far with sanctions against Russia, is now forced to buy oil from Beijing that it used to buy from us. But already more expensive.

Professor Ostrovsky does not agree with this.

– Most likely, energy carriers will not go from China to the West, – the expert is sure. – Beijing itself lacks them. Over the past year, the Chinese economy used 206 million tons of oil with a need of about 700 million tons. And we supply them with about 85 million tons. They collect oil from everywhere, so they won’t give it away.

trade between the two countries.

Photo: Dmitry POLUKHIN

Saudi Arabia has traditionally been China’s main oil supplier, but in November last year, Russia overtook the Saudis. In total, the energy carriers (natural gas, oil and coal) account for three quarters of the total volume of Russian exports to China.

THE PLYWOOD IS ALWAYS IN THE PRICE

Besides fuel, our other products are also valued in China.

“Russian products are very popular in China, they are considered ecological,” says Surana Radnaeva, director of the Sinoruss consultancy. – And this year the supply of Russian seafood has increased considerably. They recovered the positions they lost during the coronavirus restrictions.

Another important Russian export item is wood and wood products. Immediately, stories about the predatory felling of our forests and the export of round wood (raw wood. – Ed.) to China are remembered, Komsomolskaya Pravda wrote about this more than once. Now the poaching is over. As of January 1, 2022, the ban on exporting raw timber from Russia came into effect.

– This affected the supply of roundwood not only to China, but also to Finland, – explained Ostrovsky. – For a long time there were disputes about whether to impose a ban or not, China and Finland lobbied so that the ban was not introduced, but still our legislators did it. The implementation of these regulations is controlled strictly enough so that there is no smuggling.

As a result, the supply of processed wood has increased significantly.

– These are, in particular, sawn timber, mainly plywood and veneer, – specified Radnaeva. – At the same time, the prices of Russian materials are growing.

Heavenly commercial activity in Russia.

Photo: Dmitry POLUKHIN

PAYASO BORDER CHECKPOINTS

The most important item of Chinese exports to Russia… no, it’s not cars or mobile phones with computers, although we buy quite a few too. In the first place – machinery and industrial equipment. Machine tools, automatic lines, electrical machines, electrical equipment, industrial electronics… The share of heavy engineering products in Chinese deliveries is more than 50%, and the PRC has become our main partner in this direction. , displacing Germany five years ago. .

Deliveries of chemical industry products – organic and inorganic chemicals, rare-earth metal compounds, radioactive elements or isotopes – also increased.

– Full statistics on deliveries abroad are now closed, – says Radnaeva. – But indirect evidence shows that the flow of goods from China is growing. Checkpoints at the border are clogged, prices for logistics services are rising.

Other indicators of business activity also increased (see graph). Don’t the Chinese fear sanctions?

– Yes, they wanted to sneeze on sanctions! – cut with Ostrovsky approval. – When the events occurred on Tiananmen Square in 1989 (student protests in Beijing were brutally suppressed. – Ed.), Sanctions were imposed against China, although not as harsh as now against Russia, but they are still in force. And nothing. Of course, they will not behave defiantly, but will find the opportunity to do what they see fit.

Chinese automotive industry.

Photo: Dmitry POLUKHIN

SCIENCE AT WORK SANCTIONS

One of those cunning tricks to do your own way and not fight with anyone is the supply of mobile phones to Russia. This is not done directly by a well-known world manufacturer, but through many small companies that you want, you can’t count. As a result, mobile phones come to Russia, the Chinese receive money, and if the United States wants to present something, then, as they say in the famous Hollywood action movie, “What is your evidence?”

China has not only adapted to the sanctions, but has also developed an algorithm for cooperation with other countries that are subject to restrictions: Iran, Venezuela, North Korea, Syria, Belarus.

– But no one has repealed the laws of the market, – says the expert. – If you need a product from China, you will receive it, however, with a risk premium.

However, the threat of sanctions is taking its toll on business life in the Middle Kingdom.

“Chinese companies now avoid Russia-related PR,” says Radnaeva. – If previously some, even not very significant, project received decent coverage in the press, now this is not the case, mainly at the initiative of the Chinese side. It can be understood: very often Chinese companies do business both in Russia and in the West, and getting on the US sanctions list simply for doing business with Russia is not the greatest pleasure. This must be treated with understanding.

But the reason for China’s invulnerability is not only the ability to skillfully maneuver. The fact is that the West is not too eager to catch Beijing over some violations of the sanctions rules. After all, the United States is China’s largest trading partner, the European Union is also strongly tied to the Chinese economy.

– The Chinese market is huge, it has 1 billion 412 million people, so all countries, all companies want to sell their products there, – says Ostrovsky.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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