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Trade deal: US government demands 'massive changes' to EU laws

Donald Trump's administration is threatening to scrap the customs agreement if the EU does not amend several energy-related laws. Meanwhile, Member States are discussing amendments to a law that would ban imports of Russian energy sources from 2028.

By Manuel Berkel

The relationship between China and Russia has not always been easy. But in recent decades, the two countries have grown together and form a geopolitical counterweight to the USA. All Russia China news from the Table.Media editorial team. History of the relationship between China and Russia Relations between China and Russia have been more or less friendly for centuries. However, the current relationship is based on the founding of the People's Republic, which was decisively influenced by Russia at an early stage. In 1919, the Chinese Communist Party founded the Communist International (Comintern) in Russia. 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. Financed by funds from the Comintern. During the Chinese Civil War, the ruling Kuomintang under Chiang Kai-shek fought against the Chinese Communist Party under Mao Zedong. The aim of the latter was to establish a communist and classless society in China. The Kuomintang fugitives founded the Republic of China on Taiwan on the island of Formosa. The Communist Party proclaimed the People's Republic of China on Oct. 1, 1949. Russia-China alliance After the founding of the People's Republic of China, Russia and China concluded an alliance. The idea was that the countries would help each other in the event of aggression by Japan or its ally, the USA. Both Russia and China were already interested in creating a political counterweight to America. However, this alliance was broken as early as 1957. Nikita Khrushchev advocated de-Stalinization and peaceful coexistence between the superpowers. China rejected this course and introduced its own version of Marxism-Leninism in the form of Maoism. Disputes over key issues such as its own nuclear armament, the border conflict with India and the Taiwan issue led to an open break between China and Russia in 1960. Rapprochement between Russia and China China and Russia did not come closer together again until the '70s. When China increasingly sought contact with the USA and was given a seat on the UN Security Council, Russia also signaled its willingness to negotiate again. When Mikhail Sergeyevich Gorbachev came to power in Russia in 1985, he conceded on key issues between Russia and China. This led to a rapprochement between the two countries. After the Tiananmen massacre in 1989, China was isolated in terms of foreign policy. With the exception of Russia. It was the only country still supplying weapons to the People's Republic. When the Soviet Union collapsed, the new Russia and China grew even closer together politically and economically. The People's Republic no longer saw Russia as a threat and Russia saw NATO as the enemy. Since then, the two countries have formed a political and economic counterweight to the Western democracies. Neighborhood Treaty between China and Russia 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 President and Party Leader Xi Jinping extended the Treaty of Neighborly Relations. The document sets out key economic and geopolitical goals. Contents of the Russian-Chinese friendship treaty: Trade relationship between Russia and China China has been Russia's most important trading partner since 2010. The trade volume between the two countries amounted to around USD 111 billion in 2019. While the share of deliveries from and to China is steadily increasing, the role of the EU in Russia is continuously declining. When Russia annexed Crimea in 2014, the EU imposed sanctions, but Putin agreed a 30-year gas supply contract with China worth USD 400 billion. However, the relationship is clouded. This is because the delivery conditions to China are significantly worse than those to Europe or Turkey. In addition, there is hardly any Chinese investment within Russia. The situation in Russia is too uncertain for investors. However, cheap production in China and the weak rouble make Chinese products particularly popular in Russia. Europe's influence on Russian-Chinese relations Although China is by far the most important nation state trading with Russia, the 27 countries of the European Union together account for 39% of Russia's foreign trade. The political processes in Europe are correspondingly important. However, the Green Deal could increase China's importance for Russia. This is because the EU is planning a climate levy on imports, which is dependent on their carbon footprint. Russia mainly imports goods from emission-intensive industries such as metallurgy, cement production and chemicals. The environmental levy is likely to result in additional costs of 2.8 to EUR 3.6 billion for Russian exporters. Russia is therefore considering proceedings against the EU before the World Trade Organization. Russia and the New Silk Road Russia has a central role to play in China's New Silk Road infrastructure project. The Economic Belt is part of the Belt and Road Initiative (BRI). It consists of six corridors that form the overland route of the New Silk Road. Russia is directly involved in two of them: To this end, Russia is also involved in financing the New Silk Road. The Belt and Road Initiative is expected to cost around USD 900 billion in total. China is financing the project with the help of state-owned commercial banks, the New Silk Road Fund, the specially founded 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. Space: Cooperation between Russia and China China has an ambitious space program. The People's Republic has already landed a probe on the far side of the moon and collected rock samples. The first parts for a station are now orbiting the Earth, which will be used to train Chinese space travelers for larger missions. Russia would like to withdraw from the ISS project at the same time. This should free up additional funds for its own space program and a joint project with China. The construction of the Chinese space station in Earth orbit is due to be completed in 2022. The People's Republic would then like to join forces with Russia to build a joint station on the moon. However, more detailed information on this is not yet available. However, China has also invited other international partners to take part in the project. Geopolitical situation between Russia, China and the USA In geopolitics, the world is divided into two zones. One is the western zone. This is where the USA and Europe are located as a community of values. The other zone consists of Russia and China. At meetings of high-ranking representatives of NATO or the G-7, there is always talk of containing these powers and keeping them in check. But China's economic rise is unstoppable. And unresolvable 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 has led to the feeling of living in a "besieged fortress". A correspondingly tough domestic policy is being implemented. At the same time, China is seeking new trading partners and routes and is pressing ahead with its territorial claims in the Indo-Pacific. News on the Russia-China relationship The relationship between China and Russia will determine geopolitics for a long time to come. The place of the USA in this new world order will be of great importance. The economic rise of India could also upset the balance once again. Meanwhile, Europe is still looking for its role. The Table.Media editorial team provides the latest news on Sino-Russian relations.