Three Years Into the Ukraine War: China’s Lifeline to Russia Endures

Putin met with Xi in Beijing on February 4, 2022. During the meeting, they issued a joint statement declaring a ‘no-limits’ friendship. Three weeks later, Russia invaded Ukraine.

The ‘no-limits’ friendship has driven mutual trade over the three years since the invasion, surpassing the previous seven years. This highlights how China has thrown Russia a lifeline—one that comes with strings attached.

Energy: The Only Thing China Wants from Russia

In the minds of Chinese planners in 2022, to comply with the 'unlimited friendship' with Russia, there was only one priority on their shopping list: energy.

Since the invasion, China's energy imports from Russia have doubled, and energy, in the form of mineral fuels, now makes up three-quarters of its total imports from the country. To achieve this, downgrading Saudi Arabia to the second spot as China’s top crude supplier was not a concern. China's expenditures on Russian energy during the course of the war have exceeded a quarter of a trillion dollars ($274 billion for the period 2022-2024). In three years of war, China’s imports of mineral fuels from Russia have surpassed the total imports from the previous nine years.

China Stayed Clear of Sanctions on Russia, Reaped Benefits Through Exports Instead

Exports to Russia jumped 71% to $116 billion, up from $68 billion in 2021. In just two years (2023-2024), China exported more to Russia than during the entire first five-year term of Xi Jinping.

China’s Vehicle Exports to Russia: From $22B in 10 Years to $54B in Just 3!

Over the decade leading up to the invasion, China exported $22 billion worth of vehicles—both passenger and commercial—to Russia. In just the past three years, that figure has surged to $54 billion.

Passenger Car Exports Surge from Almost Zero to $15 Billion Since the Invasion of Ukraine

While China cites its role in the green transition as its main argument in its tariff dispute with the EU, it overlooks the fact that 99% of the cars exported to neighboring Russia are combustion-engine vehicles.

Bulldozer Exports to Russia Skyrocketed

China exported more bulldozers to Russia during the invasion period than in the previous ten years.

China’s Imports from Ukraine Plunge 56%, Surge 65% from Russia

China offset the drop in cereal imports from Ukraine by ramping up cereal imports from Russia fivefold

Xi Jinping has never met President Zelensky

Wouldn’t be surprising if China claims it wants to help rebuild Ukraine—through the relentless and mandatory promotion of Xi’s Belt and Road Initiative

30 Years of WTO: A Legacy of Trade Order Now Derailed by Uncertainty

The World Trade Organization was formally established on January 1, 1995. With the EU, China, and the U.S. making up a third of global trade, escalating tariffs and countermeasures are turning trade rules into a tangled spaghetti bowl. As disputes pile up, the WTO’s ability to mediate is looking more uncertain than ever, raising questions about its future relevance in global commerce

Norway Stockpiles Processing Units from China in Record $700M Import Surge

An unusual shift. China’s exports of processing units to Norway surpassed those to Germany.

Two Chinese State-Owned Automotive Companies in Talks Over Shareholding Restructuring

The two state-owned companies are Dongfeng and Changan.

If a merger is indeed the outcome, it would simply follow China's usual playbook. The country has a history of consolidating state-owned enterprises to create national champions.

Foxconn's Smartphone Exports from Henan Plunge

Kyrgyzstan: The Burden of BRI's Loans

China and Kyrgyzstan have recently agreed to extend their Belt and Road Initiative (BRI) cooperation until 2026. However, mounting concerns over the sustainability of Kyrgyzstan's debt to China are rising. The country currently owes around $1.7 billion to the Export-Import Bank of China, a significant burden stemming from loans used to finance large infrastructure projects under the BRI.

Kyrgyzstan's top resource is gold. We wonder if it plays a role in servicing this debt.

In 2024, China's imports from Kyrgyzstan skyrocketed from nearly nothing to $3 billion, with a staggering 94% of this import value attributed to gold.

China Auto Sales Flat in 2024 Despite 18% Boost from Trade-In Program Subsidies

In the auto sector, more than 6.8 million vehicles were traded in for new ones, driving sales by 920 billion yuan

The dollar and euro together account for nearly 80% of global foreign exchange reserves

Chips & Chips

In 2024, China imported 135 billion standalone chips and exported 83 billion. The exported chips (FOB) were priced at half the value of the imported chips (CIF) and were nearly 20% heavier.

China Dominates Cobalt Mining in DR Congo, Controlling Three-Quarters of Projects

Thirty-one out of the 41 mining sites with foreign stakes are owned by Chinese companies, including CATL.

Chinese Shoppers' Duty-Free Picks Mirror Global Trends

Data 2024

Beauty/lipsticks (33%), Tobacco (12%), Jewellery (11%), Watches (8%), Handbags (7%), Perfume (4%), Spirits (4%), Clothing 2%

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