In 2023, trade between Russia and China may reach record levels. This was announced on Tuesday, May 23, during his speech at the Russian-Chinese business forum in Shanghai, said Russian Prime Minister Mikhail Mishustin. As the head of the Cabinet noted, Moscow is currently trying to expand mutually beneficial cooperation with states with fast-growing economies, including China.

"For two years in a row, the volume of mutual trade has increased by about a third. In 2022, a new record was set - about $190 billion. I am sure that this year we will fulfill the task set by the heads of our states, Vladimir Vladimirovich Putin and Xi Jinping - to bring mutual trade to $200 billion," Mishustin stressed.

According to him, in the first quarter of 2023 alone, the volume of Russian-Chinese trade increased by almost a quarter and amounted to about $52 billion. Moreover, in the period from January to March, Russia managed to rise from tenth to seventh place in the list of China's main trading partners, the head of the Russian government added.

Against the backdrop of anti-Russian sanctions, Moscow has significantly deepened cooperation with Beijing in the energy sector. In particular, as Russian Deputy Prime Minister Alexander Novak noted, the authorities are now discussing agreements with Chinese partners on joint participation in the supply of the missing technological equipment for the energy industry.

"A wide range of issues on cooperation - and not only on the supply of energy resources, which are growing in large volumes and in 2022 have grown significantly, and in 2023 by another 40% growth," TASS quoted Novak as saying.

According to Andrei Kochetkov, a leading analyst at Otkritie Investments, Russia has already become the main supplier of oil to China, ahead of Saudi Arabia. In addition to raw materials, Beijing buys large volumes of Russian agricultural products, primarily food, the expert recalled.

"China is only 65-70% self-sufficient in food, so it is interested in the supply of such goods from our country. I do not exclude that in the future Russian manufacturers may occupy a significant market share in the food segment of this Asian republic, "the RT interlocutor emphasized.

Along with products in China, the demand for Russian wood and various metals is growing rapidly, Vladimir Chernov, an analyst at Freedom Finance Global, said in a conversation with RT. In turn, Russia is now buying industrial and specialized equipment, electronics, household appliances, shoes and toys from China. In addition, engineering products, in particular cars and components for them, are actively coming from Beijing, the speaker said.

So, in April, among the new cars purchased in the Russian Federation, 44% of the models belonged to Chinese brands, although a year earlier the figure was about 13%. Such data appear in the analytical reports of the agency "AUTOSTAT".

"China has increased exports of goods whose producers have left the country against the backdrop of Western sanctions. So, some models of the Volkswagen concern are imported into the Russian Federation through a parallel import scheme, since there is a joint venture with this brand in China and it is much easier for dealers to make deliveries, "Chernov said.

Protection against interference

As the volume of mutual supplies increases, Russia and China seek to minimize settlements in American and European currencies and are increasingly conducting transactions in rubles and yuan. Such a policy makes it possible to protect trade relations from anti-Russian sanctions, Mikhail Mishustin emphasized.


"If in 2021 only about a quarter of settlements between our countries were carried out in national currencies, then last year it was already almost two-thirds. We will continue to increase the independence of bilateral financial cooperation and thereby strengthen our economic sovereignty," the Prime Minister added.

  • Legion-Media
  • © CFOTO/Sipa USA

Trading in national currencies avoids any control by Western countries, which reduces the risks of secondary sanctions, including for Chinese suppliers, Andrei Kochetkov believes. In addition, transactions in the energy sector in yuan or rubles help circumvent the price ceiling for Russian oil, which is calculated in dollars, the expert noted.

According to Gleb Chernov, the steady growth of trade with China will allow Russia to more easily and quickly survive the period of decline in the national economy, since the reorientation of export and import flows will help replace most of the lost volumes of Russia's previous trade turnover with the EU countries. In turn, the strengthening of trade relations with Beijing opens up new platforms for Russian goods and services, said Pavel Sigal, First Vice-President of the All-Russian Public Organization of Small and Medium-Sized Businesses Opora Rossii.

"There has been a reversal of the economy to the East. China is one of the main consumers of Russian energy resources. And we know that new projects in this regard are already being planned, as well as expanding cooperation in terms of consumer goods. The Chinese market is very large for Russian entrepreneurs, which gives businesses the opportunity to gain a foothold and export their products, "the RT interlocutor concluded.