The volume of trade between China and Russia reached $218.2 billion during the period from January to November, which means that the two countries achieved the goal they set a year ahead of schedule, according to Chinese customs data issued Thursday. Beijing was also able to achieve a sudden increase in its exports to the world during the past month.
According to data from the General Administration of Customs of China, the value of trade between the two countries in the first 11 months exceeded the total value of trade for the entire year of 2022, ensuring that 2023 will witness a new record high in trade between them.
China and Russia agreed in 2019 to increase their trade from $107 billion in 2018 to $200 billion by 2024.
It is clear that China (the second largest economy in the world) is a major economic artery for Russia, which is subject to Western sanctions in light of its ongoing war with Ukraine.
The value of bilateral trade rose in November alone to its highest level since February 2022 when the war with Ukraine began.
According to Chinese customs data, shipping operations from China to Russia increased by 24%, equivalent to $10.3 billion, in November compared to last year, doubling the growth rate of 17% in October.
China’s ambassador to Russia said last month that since Russia has become a major buyer of Chinese cars, China hopes that Russia will provide support for Chinese auto companies’ policies to produce, sell and operate in Russia.
Imports from Russia rose 6% to $11.2 billion last month after growing 9% in October.
Increase Chinese exports
During the past month, China’s exports in general recorded an unexpected increase of 0.5% on an annual basis, after 6 months of decline, while imports declined again, according to official figures published on Thursday that reflect a limited economic recovery.
Exports are a fundamental driver of growth in China, and their performance is directly reflected in jobs for millions of companies operating in this sector.
Except for a slight increase in March and April, China’s exports have declined monthly since October 2022.
This increase was unexpected, as analysts polled by Bloomberg expected a new decline following the 6.4% decline recorded last October.
Fears of economic recession in Europe and high inflation rates have weakened global demand for Chinese products. Also, geopolitical tensions with the United States and the desire of Western countries to reduce their dependence on China or diversify their supply chains contributed to the decline in Chinese exports.
Total Chinese exports last month amounted to $291 billion, according to customs. But exports fell year-on-year by 13.8% to the United States and 11% to the European Union. In contrast, exports to Russia recorded an increase of 50.2%.
On the other hand, China’s imports contracted by 0.6% last month after a 3% increase in October, reflecting a decline in domestic demand. Chinese imports declined over a period of 11 months before recording an increase in October.
