China’s trade with Russia reached its highest level since the beginning of Russia’s conflict in Ukraine, according to official data released on the 7th of June.
The data reveals Beijing’s increased support for its ally, which sanctions have hit. In May, the total trade between China and Russia amounted to $20.5 billion, with Chinese imports from Russia accounting for $11.3 billion.
Although the figures did not provide a detailed breakdown, they did indicate a decline in China’s overall exports for the first time since February.
This decline breaks two months of growth following the post-Covid economic recovery. Several factors have contributed to this decline, including rising global inflation, the looming threat of recession in other countries, and geopolitical tensions with the United States.
China’s export sector has been adversely affected by weakening product demand. The ongoing global inflationary pressures have dampened consumer spending, reducing demand for Chinese goods.
Concerns over a potential recession in major economies have decreased imports from China. Moreover, the escalating geopolitical tensions between China and the United States have further strained trade relations, impacting the demand for Chinese exports.
China’s strengthening trade ties with Russia is seen as a strategic move to counterbalance the economic challenges it faces.
By increasing support for Russia, Beijing aims to bolster its trade network and minimize the impact of the sanctions imposed on Moscow.
The significant surge in trade between the two nations highlights China’s determination to maintain alliances and seek alternative markets amidst a complex global economic landscape.