Beijing's exports to Moscow tumble amid US sanction threats
In March, Chinese exports to Russia fell by 16 percent compared to the previous year. The decline is attributed to the increasing threats of US sanctions on Beijing in retaliation for its military support of Russia.
Bloomberg reported this significant drop, the first since mid-2022. A source close to the Kremlin suggests that the decline might only be temporary. During a planned visit to Beijing in May, Russian leader Vladimir Putin may seek discussions on boosting Chinese exports.
Trade between China and Russia is shrinking
As quoted by CNN, US officials close to President Joe Biden indicate that China's support has enabled Russia to significantly expand its military production capabilities, marking the most ambitious growth since Soviet times. This enhancement is believed to strengthen Russia's position in the conflict with Ukraine.
This military support includes machine tools, drone engine production, anti-ship missile technology, microelectronics, and nitrocellulose for weapon fuel production. Remarkably, in 2023, 90 percent of microelectronics imported from China were utilized by Russia to create missiles, tanks, and aircraft.
Meanwhile, strains may emerge in the Sino-Russian relationship. In April, Chinese banks notably started to block Russian payments for electronic assembly components, known as "kits." These kits comprise processors, device casings, screens, etc., which are crucial for manufacturing missiles, among other things. In March, it was unveiled that Chinese banks were blocking payments for transactions with Russia made in yuan.
