ABSTRACT
After the first years of the new millennium, Russia experienced a steady expansion of trade with China, which made him its first trading partner by 2010. The “Russia’s pivot to the East” policy proclaimed after the introduction of Western sanctions against Russia in 2014, has further strengthened economic ties between the countries, although trade contracted because of steep depreciation of the ruble. Against this background, the pattern of bilateral trade is shifting, as restrictions imposed by the West provided Russia with opportunities to diversify away from hydrocarbons. Russia improved penetration of agricultural and industrial goods into the Chinese market, particularly foodstuff and consumer products, which were previously almost unfamiliar to Chinese customers. Russia’s worsened relationship with the West allowed China to become the largest supplier of technical and engineering products to the Russian market surpassing Germany. It is too early to see the observed changes as a long-term trend, as there are many challenges for deepening the relations and raising mutual interdependency.
The chapter examines the latest trends in the development of bilateral trade after the imposition of anti-Russian sanctions, assesses the prospects for Russia’s efforts to expand non-primary exports to the Chinese market. The chapter also evaluates China’s prospects for replacing the Western countries with supplies of equipment and technologies for Russia.
