The United States has made it clear that action will be taken against China for ‘reconstitution of Russia’s defence industrial base’ terming the help ‘deeply problematic’. The statement was made by the State Department just hours after Russian President Vladimir Putin and Chinese President Xi Jinping in a joint press conference in Beijing stated that they wanted to improve cooperation and strengthen their relationship during Putin’s first foreign visit just days into his fifth term to the highest office in Russia. A sentiment echoed by President Xi as well who stated “China is ready to work with Russia to stay each other’s good neighbour, good friend and good partner.”
The U.S. warning comes as the Russian military-industrial complex continues to increase weapons production despite Western sanctions which were expected to debilitate Russia’s economy. Over 16,500 sanctions have been imposed on Russia since the beginning of the war by America, Britain and the European Union, along with partner nations such as Australia, Canada and Japan according to Western Media.
Russian foreign reserves worth $ 350 billion (nearly half of total Russian foreign reserves) have been frozen, and 70% assets of Russia’s banks abroad have also been frozen due to the sanctions. By removing Russia from the SWIFT system the West intended to exclude the nation from the international market. Wealth and accounts linked to those said to be close to the Kremlin have also been seized. The export of technology and high-tech components, such as chips, to Russia has also been banned according to the same report.
The United States, United Kingdom and the European Union have even banned energy imports from Russia and the G7 has set a price cap on Russian energy. But according to a U.S.-based think tank, Russia has been able to sell crude oil above the capped price. India and China are two of the biggest purchasers of Russian oil.
However, according to the U.S. govt, over 70% of machine tools and 90% of micro-electronics entering Russia come through China. These microelectronics are critical components of many of the smart munitions and cruise missiles. Russia also imports critical military components through Georgia, Kazakhstan and Belarus.
Russia and China’s bilateral trade has increased dramatically since the war began. The bilateral trade which stood at $147 billion in 2021, a year before the war grew to $240 billion in 2023. With over half of Russia’s oil exports last year ending up in China. China has filled the vacuum created by Western companies leaving Russia due to sanctions. China now provides Russia with cars, clothing, smartphones, etc.
It is clear that the sanctions imposed by the West on Russia have only slowed Russia’s economic growth as President Putin himself earlier this year stated “We have growth and they have decline.” The U.S. is waging an economic war from Trump’s scrutiny of Chinese firms listed in American stock markets to Biden’s Chips Act to now tariffs on Electronic Vehicles. Now the question is will the Americans impose sanctions against China for helping Russia wage war against Ukraine?
Dhruv Yadav
