Russian President Vladimir Putin and Chinese President Xi Jinping held a significant meeting on Thursday, marking a pivotal moment in their ongoing efforts to challenge the supremacy of the US dollar. The high-level talks between the leaders of two major BRICS nations centered on advancing their shared goal of de-dollarization, deepening economic cooperation, and addressing global geopolitical issues, including the war in Ukraine.
Key Takeaways:
De-Dollarization Efforts: Putin and Xi are advancing their goal of reducing reliance on the US dollar, focusing on local currencies for bilateral trade.
Strategic Defense Partnership: The meeting highlighted deepening defence cooperation, with Russia increasingly dependent on China amidst western sanctions.
Economic and Technological Collaboration: Both countries are enhancing cooperation in high technology, space, nuclear energy, and renewable energy.
Global Trade Dynamics: The backdrop includes recent US tariffs on Chinese goods, reflecting ongoing US-China trade tensions.
Ukraine Conflict and Peace Efforts: Discussions included strategies for the Ukraine conflict, with China potentially playing a role in brokering peace.
Strengthening Economic Ties
Putin’s visit to China, his second in less than a year, underscores the deepening economic relationship between Russia and China. Despite the severe impact of western sanctions following Russia's invasion of Ukraine, the Russian economy has managed to stay afloat, largely due to increased business deals and trade with China.
During the meeting, both leaders discussed enhancing cooperation in various fields such as industry, high technology, space, peaceful nuclear energy, artificial intelligence, and renewable energy sources.
These discussions are part of a broader strategy to boost local currencies and reduce reliance on the US dollar. By strengthening their economic ties, Russia and China aim to create a more multi polar world, challenging the existing global order dominated by the United States and its allies.
Strategic Partnership and defence Cooperation
The meeting highlighted the strong "friendship" and strategic partnership between Moscow and Beijing. Putin and Xi signed a statement on deepening their strategic partnership, particularly in defence cooperation. The Russian delegation included key figures from the defence and economic sectors, indicating the importance of these discussions for both countries.
As Russia’s economy becomes increasingly dependent on trade with China, the meeting also focused on how to work around the escalating western sanctions. Putin praised Xi’s peace plan for Ukraine, which closely aligns with Kremlin's views and hinted at a potential role for China in brokering peace.
Addressing the Ukraine War
A significant portion of the talks was dedicated to the ongoing war in Ukraine. Putin portrayed Russia and China as united in their goal of creating a "multi polar world." He praised Xi's peace plan for Ukraine, which largely echoes the Kremlin’s talking points, and hinted at a possible role for Beijing in brokering an eventual peace with Kyiv.
While Russia and China have seen a significant increase in trade since the outbreak of the Ukraine war, there are signs that Beijing has pulled back slightly. This is partly due to the US threatening to target Chinese banks allegedly assisting Russia in circumventing sanctions. However, the overall trade relationship remains strong, with China becoming an increasingly important market for Russian oil exports.
Economic and Energy Cooperation
The discussions also highlighted the importance of energy cooperation between Russia and China. The Russian delegation included several senior figures from the energy sector, emphasizing the critical role of oil and gas exports in the bilateral relationship. However, negotiations over the Power of Siberia 2 pipeline, intended to replace lost gas exports to Europe with supplies to China, have been delayed amid disagreements between Moscow and Beijing.
Despite these challenges, both countries continue to deepen their economic ties, with expanded talks focusing on various areas of cooperation. These include plans to develop an island along the Amur River border and agreements on agricultural exports and media collaboration.
Broader Geopolitical Context
The backdrop of the meeting includes recent actions by US President Joe Biden, who announced tariffs on $18 billion worth of Chinese goods, including electric vehicles, solar cells, and semiconductors.
This move is part of the broader US strategy to counter China’s economic practices and protect domestic industries. Despite these tensions, China remains heavily dependent on its ability to sell goods in developed markets, even as it diversifies into emerging markets.
Conclusion
The meeting between Putin and Xi Jinping underscores the strengthening ties between Russia and China as they pursue a shared vision of a world less dependent on the US dollar. Their discussions covered critical areas of cooperation, from economic and defence partnerships to strategies for global stability and conflict resolution. As these two major players in the BRICS alliance continue to deepen their collaboration, the geopolitical landscape is poised for significant changes, challenging the traditional dominance of the United States and its allies.
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