Russia-China trade may break new record in 2019

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A new record in the history of economic and trade relations between Beijing and Moscow would have been set with the volume of its trade reaching US $110 billion in 2019.

From January to November, trade between the two countries was 3.1% higher than in the same period of 2018.

In the first ten months of this year, Chinese imports of agricultural products from Russia increased by 12.4% in the period, while auto exports to the Slavic country grew by 66.4%, explained the Chinese Ministry of Commerce spokesman, Gao Feng, at a press conference.

Feng also commented that China’s direct investment in Russia increased 10.7% between January and October.

Steady growth

The volume of Russia-China trade has grown steadily in recent years. In 2017, it increased by 20.8% to $ 84.07 billion, while in 2018 it surpassed $100 billion for the first time.

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Both countries, which currently face US pressure in the form of sanctions against Russia and a trade war with China, have recently set an ambitious goal of doubling the volume of mutual trade to $200 billion by 2024.

According to the French portal Les Échos, the lower use of the US dollar in the Russian economy produced good results and favored the ruble.

With rising tensions between Russia and the United States in 2014, Moscow is increasingly reducing its dependence on the dollar, both to circumvent US sanctions and to strengthen its economic power.

As published by the French portal Les Échos, such a policy has been presented by the increasing use of national currencies in trade between Russia and countries like Iran, China and Turkey, all with strained relations with Washington.

In addition, Russian currency reserves in the BRICS countries increased, thus favoring trade between these countries, which amounted to the equivalent of US $125 billion in 2018, which was also confirmed by the president of the BRICS. VTB bank, Andrei Kostin.

According to the media, the Russian ruble had fallen 17% against the dollar in 2018. However, with the dollarization the Russian currency has risen 7.6% since then.

Such a result could indicate greater independence of the ruble against the US currency.

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