BEIJING – China-Russia trade is not enough to undo the impact of US and European sanctions on Moscow, according to the White House.
A few hours after Russia invaded Ukraine on Thursday, the US, UK and European Union announced new sanctions aimed at separating Moscow from the global economy. The sweeping measures did not impede the purchase of Russian oil and gas – a key driver of the local economy.
In Beijing, China’s Foreign Ministry said on Thursday that international trade with Russia and Ukraine would remain “normal” and declined to call the attack “an attack.” Meanwhile, the tax agency authorized the purchase of wheat from Russia.
China-Russia’s share of the world economy is much smaller than the Group of Seven countries – including the U.S. and Germany. That means China “will not be able to cover up” the impact of the sanctions, “American journalist Jen Psaki told reporters in Washington on Thursday.
China holds 17.3% of global GDP by 2020, compared to Russia’s 1.7% and G-7’s 45.8%, according to World Bank data.
China is a major trading partner of Russia and Ukraine. Both countries are part of the Belt and Road Initiative – a regional infrastructure development program that is widely recognized as Beijing’s attempt to increase global influence.
Trade between China and Russia reached a record high of $ 146.9 billion by 2021, an increase of 35.8 percent year-on-year, according to China’s real estate agency. China’s imports from Russia have surpassed foreign exchange demand of more than $ 10 billion.
From the current levels of exports and exports, trade will need to grow by 37 percent to reach the Moscow and Beijing target of $ 200 billion by 2024.