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Putin arrives in China's 'Little Moscow' as allies aim to deepen trade - BBC News | Putin arrives in China's 'Little Moscow' as allies aim to deepen trade - BBC News |
(32 minutes later) | |
Frances Mao | Frances Mao |
Live reporter | Live reporter |
The main thing Putin wants is for China to reaffirm its support - particularly economic support - for Russia as it continues to deal with Western sanctions, say analysts. | |
He wants assurances that China will continue to send through manufacturing equipment and technology, things like machine tools, silicon chips, even cars. Imports from China have become critical for Russia's wartime economy. | |
Analysts say he may also push for progress on the stalled gas pipeline proposal from Russia to China - known as the Power of Siberia II pipeline. China already buys gas and oil from Russia. | |
"There is mutual dependence but Russian elites rely on the rents from oil and gas to a very great degree," says Natasha Kuhrt from Kings College London. "So Russia is very likely more dependent on China than vice versa. Russia has no real allies." | |
It's clear that China has become a key economic lifeline for Russia. The nations' two-way trade increased 26% last year and Russia is now China's sixth-largest trade partner. | |
But there are signs that China is looking to moderate this, particularly under pressure from Europe and the US. | |
Official Chinese customs data showed China's outbound shipments to Russia were down 10% in April and 13% in March from the previous year. | |
Chinese banks have also been rejecting transactions with Russian importers and are reportedly tightening their requirements due to the threat of the US sanctions. | |
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