A New Trade Regime: Russia-China Cooperation

The ongoing conflict between Ukraine and Russia has set in motion a significant shift in the global trade landscape, with Russia and China forging a stronger economic alliance. This burgeoning trade relationship between Russia and China has not only altered global political dynamics but also impacted trade relations between China and other countries.

- Kuntala Sarkar

In recent years, there has been a notable decline in China’s trade relations with several countries, a trend that has only intensified following the Ukraine-Russia war. Major economies such as Taiwan, South Korea, New Zealand, and the US have experienced a shrink in their trade ties with China. For instance, the US-China trade has witnessed a decline of approximately 12.3%, and Taiwan’s trade with China has decreased by more than 25%. However, amidst these changes, China has taken measures to bolster Russia’s economy, while Western countries, including the US and major European nations, have imposed unprecedented sanctions on Russia, leading to the departure of many Western manufacturers from the country.