Russia and China deepen ties as trade surpasses expectations and settlements favor rubles and yuan
In the wake of a recent telephone exchange between Russian President Vladimir Putin and Chinese President Xi Jinping, officials highlighted a notable milestone in bilateral commerce. Russia reported that its trade turnover with China surpassed the previously set target a full year ahead of schedule, reaching an impressive 227.7 billion dollars. This figure underscores the momentum of the partners’ economic collaboration and reflects the strong demand for goods and services traded between the two Eurasian powers. The remark was conveyed by a Russian official and later relayed by observers following the call between the leaders.
China holds the position of Russia’s top foreign trade partner, signifying a deeply integrated economic relationship. A senior Russian official noted that over the past year Russia rose to the fourth place among China’s trading partners, following the United States, Japan, and the Republic of Korea. This shift highlights the evolving dynamics of China’s foreign trade network and the growing role that Russia plays within it as a key supplier of energy, raw materials, and strategic goods.
Another important takeaway from the briefing was the predominance of rubles and yuan in cross-border settlements. Officials asserted that more than 90 percent of transactions between Russia and China are settled in these two currencies, illustrating a persistent drive toward financial de-dollarization in their bilateral exchanges and a diversification of payment systems to support broader economic cooperation.
Earlier, Putin and Xi engaged in a phone discussion during which Russia reaffirmed its commitment to the one China principle. The leaders touched on the importance of respecting national sovereignty and the enduring partnership between Moscow and Beijing as they navigate regional and global challenges together.
Beyond these bilateral assurances, the two nations reaffirmed their resolve to resist external interference in their domestic affairs. The conversation emphasized safeguarding sovereignty and sustaining strategic cooperation, reflecting a shared stance on safeguarding political independence and shaping a multipolar international order.
Meanwhile in Washington, officials signaled that a separate high-level exchange was being prepared between the United States and China, with expectations of potential overtures from President Biden toward President Xi. The broader implications of such dialogue could influence the trajectory of U.S.-China relations and, by extension, global markets that tightly monitor Sino-Russian ties and their implications for energy, trade routes, and geopolitical alignments.
In Canada and the United States, analysts view the Russia-China partnership through a pragmatic lens. They note that energy security, manufacturing capacity, and regional stability are deeply connected to how these two nations advance their trade agenda, manage currency risk, and coordinate on strategic issues. The dialogue between Moscow and Beijing serves as a bellwether for how large, resource-rich economies adapt to a shifting global landscape marked by evolving alliances, technology exchanges, and financial mechanisms that steer international commerce away from traditional norms.
Observers emphasize that sustained growth in bilateral trade hinges on diversified supply chains, transparent regulatory environments, and ongoing coordination on strategic projects. The emergence of ruble and yuan settlements is more than a currency trend; it signals a broader pattern of closer financial cooperation that could influence tariff structures, investment flows, and the balance of influence among major economic blocs. As both sides continue to push forward, market participants will be watching closely for updates on production milestones, investment commitments, and prospective energy collaborations that could shape the next phase of Russia-China cooperation. The dialogue between the two nations remains a focal point for analysts tracking the evolving architecture of global trade and geopolitics, with implications that extend well beyond their borders to the North American continent and beyond.