Xi Lauds Trade Boom With Russia, Vows To ‘Amplify’ Cooperation

(Bloomberg) -- Chinese President Xi Jinping vowed to “amplify” ties with Moscow during a meeting with Russian Prime Minister Mikhail Mishustin, as the two sides continue to deepen relations.

The Chinese leader said the “robust resilience” of their cooperation was demonstrated by bilateral trade hitting its annual goal of $200 billion last month, according to the state-run China Central Television.

“Maintaining and developing China-Russian relations well is a strategic choice made by both sides on the basis of the fundamental interests of the two peoples,” Xi said during the Wednesday meeting in Beijing.  

China’s continued embrace of Russia after President Vladimir Putin’s invasion of Ukraine has been a point of contention with the US and European nations. Western governments have pressured Xi to resist supporting Moscow’s war effort.

That campaign has done little to deter diplomatic exchanges. Mishustin is this week making his second visit to China of 2023, while Xi has sat down with Putin both in Moscow and Beijing this year.

Trade between the two nations has soared since the West imposed sanctions on Russia over its war. Chinese car exporters, for example, are taking advantage of foreign firms leaving the market to sell vehicles, while China is buying more energy and commodities from its northern neighbor.

The two countries have almost totally stopped using the dollar to pay for such transactions, Mishustin said Tuesday in Beijing. More than 90% of trade is happening in the yuan or the ruble, according to state media outlet Tass.

The yuan is gaining ground as the preferred currency for goods trade settlement among China’s partners. The share of yuan-based trade settlement jumped from 15% at the end of 2021 to 27% as of September 2023, according to estimates by Bloomberg Economics, with Russia likely the single-largest contributor.

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Xi also told Mishustin that China’s economy is resilient, has strong potential, and its long-term positive fundamentals remain unchanged. Mishustin said Russia is satisfied with the growth in ties and willing to expand cooperation, CCTV reported.

Both nations agreed to expand agricultural cooperation and jointly safeguard the energy security when Mishustin met with Chinese Premier Li Qiang on Tuesday.  

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