Chinese President Xi Jinping and Russian President Vladimir Putin toast throughout the post-talk reception on the Moscow Kremlin on March 21, 2023.
Pawel Byrkin | afp | Getty Images
BEIJING — Chinese President Xi Jinping and Russian President Vladimir Putin have agreed to cooperate in a variety of economic and business areas, the 2 countries said on Wednesday.
Chinese state media reported that increasing using “local” currency was the highest of the list. The Kremlin was more assertive stating that the yuan and the ruble already account for two-thirds of payments under trade agreements between the 2 countries.
Other areas covered by the agreement include: the event of bilateral trade, cooperation in the sphere of energy and food security, and the event of railway infrastructure and other cross-border logistics infrastructure.
China is already Russia’s largest trading partner. Official statements from each parties revealed few details on numbers or implementation timeline, while noting a plan focused on the years leading as much as 2030.
The confirmation of Russian-Chinese economic cooperation comes as the USA and its allies imposed sanctions on Russia for its unprovoked invasion of Ukraine. Beijing has refused to call it an invasion while calling 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 – further consolidating his power. “The Russian side organized a grand welcome ceremony on the airport,” the Chinese read reads. “A military band played the national anthems of China and Russia.”
As was the case with the Russian reading of the economic agreement, it was more detailed than within the case of Beijing.
While the Chinese side only said it might “commit to significantly increase the amount of bilateral trade by 2030”, the Kremlin described the planned increase in trade as “multiple”.
Chinese imports from Russia rose nearly 49% in yuan terms to 763.75 billion yuan ($110.89 billion) last yr, based on Chinese customs data available via Wind Information. This is quicker than a rise of around 28% in 2021.
In one other detail that the Chinese side didn’t mention, the Russian statement says that “by way of investments, our countries have compiled a package of 80 vital and promising bilateral projects in various fields price about $165 billion.”
“We support using the Chinese yuan in transactions between the Russian Federation and its partners in Asia, Africa and Latin America,” the Kremlin said in a press release.
The US dollar stays by far the dominant currency in global transactions, although publicly available data indicates that using the yuan has increased to low single-digit percentages.
Beijing pushed for the internationalization of its currency in addition to self-sufficiency in energy and food supplies.
China and Russia are expanding a natural gas pipeline that supplies parts of China. While Beijing didn’t mention the main points, a press release from the Russian side this week spoke about it increasing gas supplies via the predominant gas pipeline “Strength of Siberia” by 50% last yr.
Official statements say that each countries individually agreed to cooperate within the media. The Russian side said it involved the joint production of television and other programs cooperation between the state media of each countries.
Uncertainty around Ukraine
Xi gave “significant attention” to China’s plans for peace talks in Ukraine in a one-on-one conversation with Putin, the Kremlin said.
Nevertheless, Putin said yes as much as “the West and Kiev” to point out “readiness” for a peaceful settlement, as read by the Russian side.
On Friday, the International Criminal Court issued an arrest warrant for Putin alleged war crimes.
“The world mustn’t be deceived by any tactical move by Russia, backed by China or every other country, to freeze the war on its terms with no viable path to restoring Ukraine’s sovereignty and territorial integrity,” said NSC’s Coordinator for Ukraine. Kirby said at a briefing earlier this week.
“If China desires to play a constructive role on this conflict here, it should pressure Russia to withdraw its troops from Ukraine and its sovereign territory,” Kirby said. next briefing. “They need to call on President Putin to stop bombing cities, hospitals and schools, to stop war crimes and atrocities, and to finish the war today. It could occur straight away.”
After meeting Putin in Moscow, Xi plans to consult with Ukrainian President Volodymyr Zelensky for the primary time because the invasion, The Wall Street Journal reported last week, citing people conversant in the matter.
China’s Foreign Ministry said only that the country was “remaining in contact with all parties.”