Latest post

Forced to choose the Ukrainian side, China’s trade favors the West

Washington, March 21 (Reuters)-US President Joe Biden’s warning about the “results” of China’s possible aid to Russia’s Ukrainian war effort has been to China’s President Xi Jinping for many years with the West. With Moscow, which may let you choose between a favorable trade relationship and a growing strategic partnership.

Beijing is at stake after Biden made a video call with Xi for nearly two hours on Friday, based solely on trade flows, and the White House confirmed that sanctions against China were an option.read more

Trade data reviewed by Reuters shows that China’s economic interests are still heavily biased towards western democracy, despite expanding trade relations with Southeast Asia and a less dependent economy over the last decade. increase.

Sign up now for unlimited free access to Reuters.com

Political cooperation with Russia makes little economic sense to China, as the United States and the European Union still consume more than one-third of China’s exports, analysts say.

“If China has to make a choice on pure economic issues-Russia vs. everyone else-that is, it’s easy because China is so integrated with all of these western economies,” said Senior. Chad Bown said he is closely tracking China’s trade at the Washington-based Peterson Institute for International Economics think tank.

China’s Ambassador to the United States Qin Gang emphasized the close relationship between China and Russia on Sunday.

When asked if Beijing would provide financial support to Moscow, Mr. Hata said, “China has regular trade, economic, financial and energy cooperation with Russia.” Laws including WTO (World Trade Organization) rules. “

Given that China is the world’s second-largest economy and the largest exporter, targeting Beijing with a wide range of economic sanctions imposed on Russia has serious consequences for the United States and the world. May bring. Over the last two decades, reliance on trade with other countries has decreased for economic well-being.

Reuters Graphics Reuters Graphics

As the Chinese people become wealthier, domestic consumption and services occupy a large share of the Chinese economy.

However, China is still dependent on trade, about 35% of GDP, 31% of the United States and 31% of Japan.

After the invasion of Ukraine last month, the wealthy G7 countries at the heart of the anti-Russian alliance still consume more than one-third of China’s exports. This is a relatively stable share, although it is down from almost half of China’s exports almost 20 years ago. Since 2014 when Russia annexed the Crimean region of Ukraine.

Reuters graphics

China’s export share to the Association of Southeast Asian Nations (ASEAN) countries, which China recently signed a new trade agreement, has doubled to about 15%, surpassing Japan. However, China’s January-February 2022 trade data shows that the European Union has grown the most at 24%.read more

Mobile phone oil

Russia’s overall trade with China has grown since the West first imposed sanctions on Moscow in response to the annexation of Crimea.read more

However, China’s exports to Russia have remained between 1% and 2% for the past 20 years.

Russian imports from China track imports from many other countries, with electronic devices and consumer goods such as mobile phones, computers, apparel, toys and footwear at the top of the list.

Reuters Graphics Reuters Graphics

China exported 10 times more mobile phones in the United States alone for $ 32.4 billion in 2020, based on data from the United Nations Comtrade.

Oil accounts for the majority of China’s imports from Russia. At $ 27 billion in 2020, crude and other oils will overwhelm all other imports from Russia, primarily in commodities such as copper, softwood, liquefied natural gas, coal, metals and ores. increase.

Reuters graphics

The U.S. has banned Russia’s energy imports, while Western sanctions do not specifically target Russia’s oil and gas exports, but U.S.-led sanctions on Russian banks banning dollar trading are Russian oil and gas freight. Is hampering China’s ability to fund its trade.

Sign up now for unlimited free access to Reuters.com

Report by David Lawder; edited by Will Dunham and Heather Timmons

Our Criteria: Thomson Reuters Trust Principles.

..

About the author

Funviralpark

Leave a Comment