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Russia's Economy Feels Price Squeeze From China
30 Nov
Summary
- Russia faces 87% price surge for Chinese sanctioned goods.
- Chinese exports to Russia show steep price hikes, not volume.
- Russia's economy shows strain from sanctions and trade asymmetry.
The once-vaunted "no limits" friendship between Russia and China has revealed a stark economic imbalance, with Moscow bearing significant costs. A recent report found that Russia paid a median 87% more for Chinese exports of sanctioned products from 2021 to 2024, a sharp increase compared to a 9% rise for exports from other nations.
This surge is evident in critical items like ball bearings, where Chinese exports to Russia saw a 76% value jump alongside a 13% quantity drop, effectively doubling the unit price. Such industrial inputs are vital for Russia's defense sector, highlighting the impact of sanctions. Meanwhile, overall bilateral trade between Russia and China declined, with China now dominating Russia's imports, underscoring the lopsided economic dependence.
As China remains wary of Western repercussions, its investment in Russia is limited. This asymmetry means Russia needs more from the relationship than China is willing to offer, exacerbating the Kremlin's economic challenges. The nation's wartime economy is increasingly strained by production issues, labor shortages, and a lack of Western technology.
