China and Russia are working together in new and exciting ways to reshape the global economy. Instead of challenging the existing world order, these two neighbors are building on it, creating new institutions and partnerships that could benefit many countries, especially those in the Global South.
Strengthening Trade and Supply Chains
The two nations are enhancing their trade by simplifying customs procedures and improving transportation links. The opening of the Heihe-Blagoveshchensk road bridge has made it easier for goods to move between the Chinese mainland’s northeast and Russia’s Far East, boosting regional trade.
China exports products like mobile phones, computers, and industrial machinery to Russia, supporting Russia’s efforts to develop its own manufacturing sector. In return, China imports energy resources like oil, natural gas, and coal from Russia, ensuring stable long-term energy supplies.
Building a Financial Bridge
After facing challenges with international payment systems, China and Russia have started using their own currencies for trade. Now, over 95 percent of their transactions are settled in the renminbi and the ruble. They’ve also linked their financial messaging systems, making transactions smoother and less dependent on Western systems.
Joint Infrastructure Projects
The two countries are collaborating on major infrastructure projects that not only connect them but also have the potential to benefit other regions. For example, the China-Europe Railway Express relies heavily on Russia’s railways to connect East Asia with Europe. They are also working on the China-Kyrgyzstan-Uzbekistan railway, which will enhance connectivity in Central Asia.
Additionally, Russia has invited China to co-develop the Northern Sea Route, an Arctic shipping lane that could significantly reduce travel times between Asia and Europe.
Inspiring Other Nations
China and Russia’s partnership showcases how countries can work together to create new opportunities without disrupting the existing global system. Their collaboration might inspire other emerging economies to rethink their roles in the world economy and to contribute to a more inclusive global governance system.
By focusing on mutual benefits and shared development, China and Russia are setting an example of how countries can build a better future together.
