China-Russia trade relations

Written by The Frontier Post

China has proposed to Russia to reconsider the route of trucks across the border due to tremendous traffic jams at the Zabaikalsk-Manchuria checkpoint on Chinese Russian common border particularly after introduction of corona related restrictions by the Chinese government during recent months. According to authorities of the Autonomous Region, the long queues of freight carriers and trucks at the Russian-Chinese border cause delay in transportation of goods and bring losses of about 40 million rubles per day. The traders and Drivers Complaint about the lengthy process of border crossing by the cargo trucks which includes frequent hook and unhook of tractor-trailers besides various border crossings by the travelers. According to Chinese government officials, such a transportation system is an extremely safe measure of prevention and control of epidemic at checkpoints, and also ensures the smooth flow of trade goods in the border region of Russia and China. According to reports, a Russian tractor has to cross the border four times to take out one trailer of cargo from the Chinese side, which not only takes time but also wastes significant resources of the checkpoint. Although, both governments are engaged in discussions to lift the relevant restrictions, but yet have not succeeded to resolve the issue so far.

The two major powers of the world reenergized their bilateral ties after decades long rivalry between China and the former Soviet Union in 1991, when the Soviet Union was replaced by the Russian Federation. Both countries gave a boost to their bilateral cooperation through the Sino-Russian treaty of friendship in July 2001. According to experts, Trump’s instigated US’s trade war pushed two neighbors to further solidify their trade and economic relations through mutual cooperation. According to reports, during recent years the bilateral trade between two countries witnessed 20 percent increase annually. The volume of bilateral trade between Russia and China during 2020 stood at $ 107. 77 billion. Although, the share of Russia-China bilateral trade is not higher than Chinese trade with several other nations, however both nations have great potential to enhance their bilateral trade in agriculture, defense and security, e-commerce, and energy sectors. Recently, the two countries concluded an agreement on road transportation of their trading material including dangerous goods such as liquified petroleum gas, natural gas, chemicals, and other energy products during the coming years. Presently, Russia and China are considering using their own currencies in bilateral trade to end dependency on the American dollar.

In fact, the United States trade protectionism and corrosive policies have sensitized the world’s nations to search new markets and build new trade partnerships with other countries to protect their financial interests. Both Russia and China remained prime victims of America’s legacy of trade sanctions and ban on market’s access to foreign technological giants and business entities during recent years. The United States and European Union have resolved their trade differences during a recent meeting of President Biden with the head of the European Commission in Rome. The two allies decided to form a club of steel and aluminum producing countries to single out Russia and China in this field. Currently, the contours of two major trade and defense blocs are getting more visible in the present-day geopolitical landscapes of the world. Although both Russia and China have not yet embraced any formal accord, their opposing forces are pushing them in that direction.

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