Russia-China trade reaches historic heights

Russia-China trade reaches historic heights

Russia-China trade turnover hit an all-time high in 2024, reaching $245 billion, according to Reuters [1]. This surge in trade was driven by China's decision to maintain economic ties with Russia despite the latter's invasion of Ukraine in February 2022. China's support, including the purchase of Russian oil and a wide range of goods, propelled bilateral trade to unprecedented levels.

However, trade turnover between the two nations has since declined by 8.1% from January to July 2025, as reported by Chinese customs data [1]. This downturn, which reflects a natural correction from record highs, is causing concern in Moscow ahead of a summit between President Vladimir Putin and President Xi Jinping in Tianjin, China [1].

The decline in trade is attributed to several factors, including a slump in vehicle imports to Russia and a decrease in oil exports to China [1]. Despite this, both countries are exploring ways to boost trade, with agriculture and energy projects being potential areas of expansion [1].

Russian officials acknowledge their reliance on China for both economic and military support. Without Chinese technology, Russia would have struggled to maintain its military capabilities, according to a source close to the Russian government [1]. However, Russia's biggest trading partners, including China and India, are seen as primarily acting in their own interests, with no genuine allies [1].

The upcoming summit in Tianjin is expected to focus on furthering economic cooperation and reducing mutual trade barriers, as stated by Putin in a written interview with Xinhua news agency [2]. This visit comes amidst ongoing geopolitical tensions, including Russia's war against Ukraine and trade disputes with the United States.

References:
[1] Reuters. "Russia-China trade turnover down 8% from January to July." August 28, 2025. https://www.reuters.com/world/china/russia-eyes-china-trade-revival-putin-prepares-xi-summit-sources-say-2025-08-28/
[2] Indian Express. "Putin to visit China to discuss trade barriers." August 30, 2025. https://indianexpress.com/article/world/putin-russia-china-discriminatory-sanctions-global-trade-10220118/