China's Official Stance and Diplomatic Strategy
The statement from Liu Pengyu, the spokesperson for the Chinese Embassy in Washington, is part of a consistent and firm diplomatic position. China views its economic relationship with Russia as a matter of national sovereignty and rejects what it calls "unilateral sanctions" and "long-arm jurisdiction" from the United States.
- Rejection of Coercion: China's foreign ministry has made it clear that "coercion and pressuring will not achieve anything." Beijing frames its energy and trade choices not as support for Russia's war effort but as a nation defending its right to self-determination and energy security.
- "Comprehensive Strategic Partnership": The relationship between the two countries is defined as a "comprehensive strategic partnership of coordination." Both nations share a vision of a "multipolar world order" that counters what they see as US hegemony. This political alignment is the foundation for their continued economic cooperation.
US Sanctions and Bipartisan Pressure
The US has significantly escalated its pressure on China and other countries to stop supporting Russia, with new legislative efforts and direct threats.
- Proposed Sanctioning Russia Act of 2025: A new bipartisan bill, sponsored by Senators Richard Blumenthal and Lindsey Graham, is gaining support in the U.S. Senate. The bill proposes imposing a staggering 500% tariff on products imported from any country that continues to trade with Russia, particularly in oil, gas, petroleum products, or uranium, and doesn't actively support Ukraine. This bill has significant backing and could potentially override a presidential veto.
- Trump's Tariff Threats: In addition to the Senate bill, President Donald Trump has issued public warnings of up to 100% tariffs on countries like China and India that continue to buy Russian oil, unless a peace deal is reached in the conflict. He has accused countries of profiting from the war and vowed to "substantially" raise tariffs.
Detailed Overview of China-Russia Trade
While bilateral trade has faced headwinds, a deeper look at the data reveals that China remains crucial to sustaining Russia's economy.
- Trade Volume: According to China's General Administration of Customs, the overall trade turnover between China and Russia declined by 8.1% in the first seven months of 2025, reaching approximately $125.8 billion. This decline is attributed to a weakening global economy and logistical bottlenecks due to sanctions.
- Critical Imports: Despite the overall drop, certain key sectors have seen a sharp increase, highlighting Russia's reliance on China:
- Dual-Use Goods: China has remained Moscow's key supplier for "high-priority" dual-use items—goods with both civilian and military applications. Exports of components for drones, radar reflectors, and ballistic fibers used in body armor have surged. For instance, Chinese exports of drone engines to Russia rose to $105 million in the first half of 2025, a four-fold increase from the previous year.
- Automotive Parts: Exports of Chinese cars to Russia plunged by 59%, but exports of car parts surged. This indicates a shift towards local assembly in Russia to bypass higher tariffs on fully built vehicles.
- Energy and Finance:
- Oil Imports: China continues to be one of Russia's largest energy customers, buying discounted crude oil. In April 2025 alone, oil shipments from Russia to China surged by 20%, reaching 1.3 million barrels per day.
- CIPS and De-dollarization: The use of national currencies, particularly the yuan, is growing rapidly in bilateral trade. Russia and China are increasingly using China's Cross-Border Interbank Payment System (CIPS) as an alternative to the Western-dominated SWIFT system. In 2024, the daily transaction volume of CIPS was approximately $90.95 billion, and its use in Russia-China trade is expanding as both countries seek to reduce their dependence on the U.S. dollar.
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