- Chinese President Xi Jinping and Russian President Vladimir Putin have agreed to cooperate on a number of economic and business areas.
- Prominent on the list was the increasing use of “local” currency, Chinese state media said.
- The confirmation of Russian-Chinese economic cooperation comes as the US and its allies sanctioned Russia for its unprovoked invasion of Ukraine.
Chinese President Xi Jinping and Russian President Vladimir Putin toast at a reception following their talks at Moscow’s Kremlin March 21, 2023.
Pavel Byrkin | AFP | Getty Images
BEIJING — Chinese President Xi Jinping and Russian President Vladimir Putin have agreed to cooperate on a range of economic and business areas, both countries announced on Wednesday.
Prominent on the list was the increasing use of “local” currency, Chinese state media said. The Kremlin more clearly noted that the yuan and ruble already account for two-thirds of payments for trade deals between the two countries.
Other areas covered by the agreement included: expanding bilateral trade, cooperation on energy and food security, and developing rail and other cross-border logistics infrastructure.
China is already Russia’s largest trading partner. Official statements from both sides revealed few details on the numbers or timetable for implementation, while the plan focused on the years up to 2030.
The confirmation of Russian-Chinese economic cooperation comes as the US and its allies sanctioned Russia for its unprovoked invasion of Ukraine. Beijing refuses to speak of an invasion, but calls for peace talks.
Xi traveled to Moscow this week for his first state visit since winning an unprecedented third term as president earlier this month – and further consolidating his power. “The Russian side held a grand welcome ceremony at the airport,” China’s ad said. “The military band played the national anthems of China and Russia.”
As was the case, Russia’s announcement of the economic deal went into more detail than Beijing’s.
While the Chinese side only said they would “commit to significantly increasing bilateral trade volumes by 2030,” the Kremlin described planned trade growth as “several times over.”
China’s imports from Russia grew nearly 49% in yuan terms last year to 763.75 billion yuan ($110.89 billion), according to Chinese customs data accessible via Wind Information. That’s faster than the roughly 28% increase seen in 2021.
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In another detail that the Chinese side did not mention, the Russian statement said: “When it comes to investments, our countries have a package of 80 important and promising bilateral projects in various fields worth about $165 billion compiled.”
“We support the use of the Chinese yuan in transactions between the Russian Federation and its partners in Asia, Africa and Latin America,” the Kremlin said in a statement.
The US dollar remains by far the dominant currency for global transactions, although publicly available figures suggest that the use of the yuan has risen into the low single digits.
Beijing has promoted the internationalization of its currency as well as energy and food self-sufficiency.
China and Russia are expanding a natural gas pipeline that supplies parts of China. While Beijing gave no details, a statement from the Russian side said this week that it had increased gas supplies through the main Power of Siberia pipeline by 50% over the past year.
The two countries separately agreed to cooperate in the field of media, official statements said. The Russian side said this includes joint production of TV programs and other collaborations between the two countries’ state media.
Xi has paid “considerable attention” to Chinese plans for peace talks in Ukraine in a one-on-one meeting with Putin, the Kremlin said.
However, Putin said it was up to “the West and Kiev” to show “readiness” for a peaceful settlement to be reached, the Russian side said.
The International Criminal Court issued an arrest warrant for Putin on Friday for alleged war crimes.
“The world should not be fooled by a tactical move by Russia, with the support of China or any other country, to freeze the war on its terms without a viable way of restoring Ukraine’s sovereignty and territorial integrity,” said John Kirby, NPC Strategic Communications Coordinator at a briefing earlier this week.
“If China wants to play a constructive role here in this conflict, then it should urge Russia to withdraw its troops from Ukraine and Ukrainian sovereign territory,” Kirby said in a subsequent briefing. “They should urge President Putin to stop bombing cities, hospitals and schools, end war crimes and atrocities, and end the war today. It could happen immediately.”
After his meeting with Putin in Moscow, Xi wants to speak to Ukrainian President Volodymyr Zelenskyy for the first time since the invasion, the Wall Street Journal reported last week, citing people familiar with the matter.
China’s foreign ministry said the country “remains in touch with all parties.”