Behind Xi and Putin's effusive rhetoric, issues remain for China-Russia ties

Beijing must protect its own interests as it provides a lifeline for Russian economy

- Joyce ZK Lim, Jonathan Eyal

China has pledged to deepen bilateral ties with Russia, in a show of solidarity with its oldest diplomatic partner, just shortly after President Xi Jinping returned from a charm offensive in Europe.

Welcoming Mr Vladimir Putin on a state visit on May 16, just days after he was re-inaugurated as Russia's President, Mr Xi spent hours with the man he has called his "best friend" - from a ceremonial welcome in the morning to a gala celebration in the evening, and to hours of talks in between.

They lauded the strength of China-Russia relations, which Mr Xi described as a "lasting friendship" and which Mr Putin labelled as having reached "unprecedented heights".

And in a lengthy joint statement, they pledged to deepen their "comprehensive strategic partnership of coordination", while finding common cause against what they described as the United States' policies of containment towards their countries.

But this effusive rhetoric belies issues that remain for the bilateral relationship, analysts say.

Even as China has provided a crucial lifeline for a Russian economy squeezed by Western sanctions, Beijing has its own needs and interests to protect not least in the face of heightened scrutiny from the US and European Union of its dealings with Moscow.

TRADE AND FINANCE IN THE CROSSHAIRS

In a joint press briefing on May 16, Mr Xi and Mr Putin lauded bilateral economic ties, which have surged in the face of American and European sanctions on Russia following the Ukraine war.

Trade between China and Russia exceeded US$240 billion (S$322.9 billion) in 2023, close to 2.7 times that of a decade ago, noted Mr Xi.

Mr Putin was keen to emphasise the strategic aspect of this trade relationship: Most of it is not priced in US dollars, thereby boosting both China's and Russia's stated objective of moving away from the overwhelming dominance of the American currency in international trade.