Putin meets Xi: Why Russia and China need each other | International Business News

Russian President Vladimir Putin arrived in China on Tuesday evening for a two-day visit involving talks with Chinese President Xi Jinpingas Moscow and Beijing move closer to war, sanctions and the collapse of the global order.

Putin’s visit is the second face-to-face meeting he has had with Xi in less than a year and coincides with the 25th anniversary of the 2001 Treaty of Good Neighbor and Friendly Cooperation, an agreement that established relations between Russia and China after decades of rivalry and mutual suspicion.

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The visit comes just days after US President Donald Trump left Beijing following his two-day visit to the Chinese capital to meet with Xi.

Both Moscow and Beijing are at odds with Washington, with analysts saying the uncertainty of Trump’s foreign policy has brought Russia and China closer together.

Their broader agreement also comes against the backdrop of what happened in Ukraine, the escalation of tensions around Iran, and the disruption of shipments through the Strait of Hormuz – a problem that has disrupted global energy markets and renewed Beijing’s concerns over oil and gas security.

With one of the world’s most important rivers under threat, China has turned to Russia as a reliable source of energy on land.

Analysts say Xi’s decision to host Trump and Putin during the week was no coincidence, reflecting Beijing’s efforts to establish itself as a credible actor in a world system that is increasingly divided and unstable.

How has China’s relationship with Russia changed over the decades?

China and Russia have long been at loggerheads in each other’s history. Bonded together through communist ideology and shared opposition to Western capitalism, the Soviet Union and Maoist China later clashed, with disputes over their 4,300km (2,670-mile) border bringing the two countries closer to Cold War tensions.

However, the border has changed from a border of insecurity to one of cooperation and trade.

Neither Xi nor Putin likes to travel abroad. Putin is the head of the International Criminal Court (ICC) to be arrested over the war in Ukraine, while Xi does not leave China except for government visits. But both leaders have invested heavily in maintaining their relationship.

The two have repeatedly referred to each other as “friends”, and their relationship has grown, especially since Russia invaded Ukraine in 2022, which pushed Moscow further away from other countries and forced the Kremlin to focus on the southeast for trade amid Western sanctions.

“Russia and China are boldly looking to the future,” Putin said in a statement to Russian media.

He said the two countries are “expanding political, economic, security cooperation, expanding cultural exchanges, and strengthening people-to-people ties”.

“On the contrary, we are doing everything in cooperation to expand bilateral cooperation and advance international development for the betterment of both countries,” added Putin.

Why Russia needs China

China has become a source of wealth for Russia as the country’s economy has changed dramatically during the war, with two-way trade between the two countries doubling between 2020 and 2024, reaching $237bn a year.

But the relationship is not mutually exclusive. Although China is Russia’s largest trade partner, Russia accounts for only a quarter of China’s total international trade. China’s economy is bigger, and Beijing has more leverage in negotiations between the two sides.

Since the invasion of Ukraine, Moscow has become increasingly dependent on Chinese technology and manufacturing. A recent Bloomberg report found that Russia is taking advantage of more than 90 percent of the goods it receives from China, including military equipment and dual-use materials needed for drones and other defense industries.

China has also emerged as an important buyer of Russian oil and other energy products at a time when European markets have been largely closed to Moscow in response to the Russia-Ukraine war. With Western sanctions restricting Russia’s options, the Kremlin has several options for dealing with China.

Analysts say the imbalance means Beijing is often able to negotiate from a position of strength, securing access to Russian oil and gas at lower prices while expanding its influence over Moscow’s economy.

Why China still needs Russia

Although this relationship is not equal, it is not one-sided. Russia offers a valuable asset in a troubled world: gaining access to more power beyond the insecure sea trade routes.

The war around Iran and the disruption of the Strait of Hormuz have heightened Beijing’s concerns about energy security, as China has become increasingly dependent on imported oil and gas through rival routes.

This has also fueled interest in the Power of Siberia 2 pipeline, a long-delayed project that is expected to feature prominently in this week’s talks.

If completed, the pipeline will transport 50 billion cubic meters of Russian gas annually to China via Mongolia, greatly expanding energy flows between the two countries.

But it is not just an economic relationship. China also values ​​Russia as a political partner. Both countries are permanent members of the United Nations Security Council and often cooperate technically against US-led policies.

While experts say China has been careful not to tie itself to Moscow through a strong military alliance, the two countries have steadily strengthened their ties through regular military exercises, including the “Joint Sea” naval exercises that began in 2012.

Last year, China and Russia launched a new naval exercise at sea Sea of ​​Japan near the Russian port of Vladivostok, is an exercise that focuses on naval rescue, anti-submarine warfare, air defense, missile defense and maritime warfare operations. Experts say that these exercises help to show the connection between Beijing and Moscow without a defense cooperation agreement.

Experts say that the strength of the partnership lies in its flexibility. Although Western governments often show that this relationship is fragile and driven mainly by confrontation with the West, experts say, it can be long-lasting because it is based on economic interests and policies that are shared instead of ideas alone.