China’s total trade with Russia has reached levels not seen since the beginning of Vladimir Putin’s war in Ukraine, as per official data showing its increased support for its sanctions-hit ally. Trade between the two countries was worth $20.5bn (£16.5bn) last month, with Chinese imports from Russia worth $11.3bn.
No official breakdown of the numbers was provided, but China’s exports were shown in the data to have fallen for the first time since February, despite showing a growth streak over the last two months. Global inflation, the risk of recession, and geopolitical tensions have contributed to weakening demand for Chinese products.
In May, China’s exports fell 7.5% while imports were down 4.5%, adding to evidence that the economic rebound following the end of pandemic-related controls is slowing as global demand weakens due to higher interest rates. However, China’s trade with Russia proved a rare exception to the otherwise gloomy trend.
China is Russia’s top trading partner with trade between the two countries reaching a record $190bn last year, according to Chinese customs data. At a summit earlier this year, Xi Jinping, China’s President, and Vladimir Putin pledged to increase trade to $200bn this year as they emphasised their “no limits” partnership. Russia’s energy shipments to China were scheduled to increase by 40% in 2022, said Alexander Novak, the Deputy Prime Minister.
Chinese exports to most destinations fell in May, with double-digit decreases in exports to the US, Japan, Southeast Asia, France, and Italy.
Imports fell 4.5% to $218bn, which is better than the predicted decrease of 8%, leading to a trade surplus of $66bn. Purchases from most regions fell in China in May, with more than 20% decreases in imports from Taiwan and South Korea: a sign of a weak global demand for electronics.
