Chinese cars have become popular in Russia in recent years. Brands like Chery and Haval are now able to fill the gap left by the withdrawal of Western manufacturers. This is made possible by Russia's yuan reserves. Ultimately, however, Russia could end up becoming an extension of China's automotive sector.
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The closure of Russian airspace is wreaking havoc on air traffic. Longer travel times are to be expected on China routes. Costs are rising for cargo airlines, which could also affect supply chains and prices. Meanwhile, Asian airlines will be able to continue taking the shorter routes – to Europe's disadvantage.
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In addition to the exclusion from the international payment system Swift, tech sanctions could also have a severe impact on Russia's economy. However, China could offset punitive measures with its own exports. But Beijing has to hold back; after all, the Communist Party does not want to break completely with the West. This price would probably be too high.
By Ning Wang
China presents itself as an ally of Russia, but not a particularly loyal one. On Sunday, Foreign Minister Wang Yi already expressed criticism of the actions in Ukraine. At the same time, he rejected any sanctions. So China is keeping a low profile for the time being and is continuing to cause scratching heads.
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China's position in the Russia-Ukraine conflict raises many questions. In an interview conducted by Michael Radunski, Janka Oertel explains the underlying considerations behind Beijing's policy. With a view to Taiwan, the China expert warns that the status quo policy can no longer be maintained.
By Michael Radunski
Russian President Vladimir Putin fell into China's trap. Putin overestimates himself - and his alliance with Beijing. Because Xi Jinping won't jeopardize the prosperity he has achieved in his own country for the sake of his war policy. On the contrary, he is luring Russia into economic dependence by hinting at an alliance without wanting to actually interfere. That would leave Russia the loser.
By Redaktion Table
Ukraine is the largest supplier of rare earth elements and other raw materials for the European high-tech sector. The EU originally wanted to become less dependent on China when it came to procuring industrial minerals - and has relied primarily on Ukraine for this purpose. China has also sought access to rare earth and noble gas deposits. Putin's war of aggression has now thwarted the plans on both sides. Will the valuable deposits now fall into Russia's hands?
By Frank Sieren
The relationship between China and Russia has not always been easy. But over the past decades, the two countries have grown together and form a geopolitical counterweight to the United States. Get all the news on Russia from the Table.Media editorial team.
There have been sometimes more, sometimes less friendly relations between China and Russia for centuries. The current relationship, however, is based on the founding of the People's Republic, which was influenced early and decisively by Russia. For in 1919, the Communist Party in Russia founded the Communist International (Comintern). An association of communist parties. Together with Professors Li Dazhao and Chen Duxiu from China, Russian delegates formed party cells in Shanghai, Beijing and other parts of the country. Funded by money from the Comintern. During the Chinese Civil War, the ruling Kuomintang under Chiang Kai-shek fought the Chinese Communist Party under Mao Zedong. The latter aimed to establish a communist and classless society in China. The fled Kuomintang established the Republic of China on Taiwan on Formosa Island. The Communist Party proclaimed the People's Republic of China on October 1, 1949.
After the establishment of the People's Republic of China, China and Russia formed an alliance. The idea was that the countries would help each other in case of aggression by Japan or its ally, the USA. Both Russia and China were already concerned at that time with creating a political counterweight to America. As early as 1957, however, this alliance broke down. Nikita Khrushchev advocated de-Stalinization and peaceful coexistence between the great powers. China rejected this course and introduced its own version of Marxism-Leninism, Maoism. Disputes over central issues such as China's own nuclear armament, the border conflict with India and the Taiwan question led to an open rupture between China and Russia in 1960.
China and Russia did not come closer again until the 1970s. As China increasingly sought contact with the United States and was given a seat on the UN Security Council, Russia also signaled a willingness to negotiate again. When Mikhail Sergeyevich Gorbachev came to power in Russia in 1985, he gave in on crucial points of contention between Russia and China. This led to a rapprochement between the two countries. After Tian'anmen massacre in 1989, China was isolated in foreign policy. With the exception of Russia. It was the only country that still supplied weapons to the People's Republic. When the Soviet Union collapsed, the emerging Russia and China grew even closer politically and economically. The People's Republic no longer considered Russia a threat and Russia rather saw NATO as the enemy. Accordingly, the two countries have since formed the political and economic counterweight to the Western democracies.
In 2001, China and Russia concluded the Russian-Chinese Friendship Treaty. It was limited to twenty years. In the summer of 2021, Russian President Vladimir Putin and Chinese leader Xi Jinping renewed the treaty. The paper sets out key economic and geopolitical goals.
Cooperation: strengthening economic, environmental, military, educational and scientific cooperation. Borders: Recognition of territorial integrity; Russia supports the One China policy. Security policy: terrorism, separatism and religious fanaticism are to be fought jointly by the two countries. Weapons of mass destruction are to be reduced. Foreign policy: Neither Russia nor China is allowed to join an alliance that is aligned to the detriment of the other. In the event of conflicts, the two countries shall consult with each other. Property: The countries recognize each other's property. A clause directed primarily at trademark piracy in China.
China has been the most important trading partner for Russia since 2010. The volume of trade between the two countries amounted to about 111 billion dollars in 2019. While the share of shipments to and from China is steadily increasing, the EU's role in Russia is steadily decreasing. When Russia annexed Crimea in 2014, sanctions were imposed by the EU, but Putin agreed a $400 billion, 30-year gas supply deal with China. But the relationship has soured. The terms of supply to China are significantly worse than those to Europe or Turkey. In addition, there is hardly any Chinese investment within Russia. For investors, the situation in Russia is too uncertain. However, cheap production in China and the weak ruble make Chinese products particularly popular in Russia.
Although China is by far the most important nation-state trading with Russia, the 27 countries of the European Union together account for 39 percent of Russian foreign trade. Accordingly, the political processes in Europe are important. The Green Deal, however, could increase China's importance to Russia. This is because the EU is planning a climate levy on imports that depends on their carbon footprint. Goods from emission-intensive industries such as metallurgy, cement production and chemicals are imported from Russia in particular. With the environmental levy, Russian exporters are likely to face additional costs of 2.8 to 3.6 billion euros. Russia is therefore considering legal action against the EU before the World Trade Organization.
Russia has a central role to play in China's New Silk Road infrastructure project. In the so-called Belt and Road Initiative (BRI), there is the Economic Belt. It also consists of six corridors that form the overland route of the New Silk Road. Russia is directly involved in two of them: China - Kazakhstan - Russia - Ukraine/Belarus - Poland - Slovakia - Germany. China - Mongolia - Russia To this end, Russia is also participating in the financing of the New Silk Road. The Belt and Road Initiative is expected to cost about $900 billion in total. China is financing the project with the help of state-owned commercial banks, the New Silk Road Fund, the specially established Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). In addition to China, India, Brazil and South Africa, Russia is also involved in the New Development Bank.
China maintains an ambitious aerospace program. The People's Republic has already landed a probe on the far side of the moon and collected rock samples. In the meantime, the first parts for a station are orbiting in Earth orbit, which is to be used to train Chinese space travelers for larger missions. Russia would like to withdraw from the ISS project in parallel. This should free up additional funds for its own space program and a joint project with China. Construction of the Chinese space station in Earth orbit is to be completed in 2022. After that, the People's Republic would like to join forces with Russia to build a joint station on the moon. However, there is no more detailed information on this yet. However, China has invited other international partners to join the project.
In geopolitics, the world is divided into two zones. One is the western one. This is where the U.S. and Europe locate themselves as a community of values. The other zone consists of Russia and China. At meetings of high-ranking representatives of NATO or the G7, there is always talk of containing these powers and keeping them in check. But China's economic rise is unstoppable. And irreconcilable differences with the West over democracy and human rights have brought China and Russia closer together. Political experts from Russia refer to the current decade as the "Roaring Twenties," alluding to a new arms race and increasing instability. In Russia, this leads to the feeling of living in a "besieged fortress. Accordingly, domestic policy is being cracked down on. At the same time, China is seeking new trading partners and routes and is pressing ahead with its territorial claims in the Indo-Pacific.
The relationship between China and Russia will determine geopolitics for a long time to come. Of great importance will be what place the U.S. will take in this new world order. India's economic rise could also upset the balance once again. Meanwhile, Europe is still searching for its role. The latest news on Sino-Russian relations is provided by the Table.Media editorial team.
