How China is helping Russia

  1. Buying Russian energy: Total trade between China and Russia hit a new record high in 2022, up 30% to $190 billion, according to Chinese customs figures. In particular, the energy trade has risen markedly since the onset of the war. China bought $50.6 billion worth of crude oil from Russia from March to December, up 45% from the same period the previous year. Coal imports surged 54% to $10 billion. Natural gas purchases, including pipeline gas and LNG, skyrocketed 155% to $9.6 billion.
  2. Replacing Western suppliers: Russia has also been spending billions on buying machinery, electronics, base metals, vehicles, ships and aircraft from China, as detailed in a US Congressional Research Service report from last May. Chinese car brands, including Havel, Chery, and Geely, have seen their market share surge from 10% to 38% in a year following the exit of Western brands, according to most recent data from Russian research firm Autostat. In consumer electronics, Chinese brands accounted for about 40% of the smartphone market at the end of 2021. A year later, they’ve virtually taken over the industry with 95% market share, according to market research firm Counterpoint.
  3. Providing an alternative to the US dollar: After some Russian banks were cut off from SWIFT — the international messaging system that enables bank transactions — Moscow has been dropping the dollar for the Chinese yuan. Russian companies have been using more yuan to facilitate the increased trade with China. The yuan’s share of the Russian foreign currency market jumped to 48% by November 2022 from less than 1% in January, according to Russian media, citing the head of the Moscow Exchange.

Jeff

4 Likes

This is a cold war again. This is an arms race. This is an economic battle.

We will see purges in Russia. We do see the beginnings of purges in China as well. Tens of millions of their citizens will be killed by Putin and Xi.

Yes we have to win in Ukraine and hands down in every area of this competition.

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You probably should add India into the camp helping Russia too.

Andy

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So, what do we do about it? If the US imposes sanctions on China, we turn our supply chain back to 2020, when China was shut down.

Steve

1 Like

Is China really helping Russia? Or is China helping herself?

Chinese margins may be fatter than usual trading with Russia. Russian oil has less of a margin than usual. China is a drag on the Russian economy.

As is India.

I am reasonable.

1 Like