**China Fails to Replace Western Goods for Russia**
China has become Russia’s largest supplier of goods, but Chinese imports are not fully replacing the equipment and raw materials lost due to sanctions.
**Trade Halted by Payment Issues**
The trade between the two countries is being hindered by payment difficulties. The West is intensifying sanctions against Russia in response to its full-scale invasion of Ukraine.
**Some Sectors Benefit from Chinese Imports**
Chinese imports have partially compensated for Russian losses in some key sectors. Medical and optical equipment imports rose by $1.3 billion annually compared to 2021, covering only 60% of pre-sanction European shipments. Plastics and polymers imports increased by $1.6 billion, replacing just 40% of EU supply.
**Other Sectors Still Lacking**
However, Chinese exports fell short in several categories. Aircraft shipments from Europe dropped by $3.1 billion annually, while Chinese exports amounted to only $201 million, just 7% of the shortfall. For pharmaceutical production, China supplied $108 million annually, far below the EU’s pre-war level of $9.3 billion.
**Trade Growth Stagnates**
Despite an initial surge in trade, growth has stagnated. Mutual trade turnover grew by just 1.9% in 2024, reaching $244.8 billion. Chinese exports to Russia in yuan grew by only 5%, compared to 53% the previous year, while imports from Russia rose by 1%.
**Crude Oil Exports Set Record High**
Russian crude oil exports to China hit a record high in 2024, growing by 1% compared to 2023. However, broader trade figures highlight the limitations of Russia’s pivot to China in offsetting the impact of Western sanctions.
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