China and Russia: colleagues or competitors?

After the collapse of the USSR, the common goal of Beijing and Moscow was the restructuring of the world order, originating in the West. This forced them to cooperate in many areas, from energy to institutional development.

Strong demand for Chinese investment in Central Asia, the Russian Far East and the Arctic is attracting energy companies and providing institutional support in remote regions. However, Moscow is wary of the growing number of Chinese migrants, while Beijing is trying to alleviate concerns by highlighting the benefits of Chinese investment in every possible way.

By gaining a foothold in Russia through the eastern leg of the Belt and Road Initiative, China is laying the groundwork for future geopolitical games. From a strategic point of view, China's influence on economic development in the Russian Far East, Central Asia, and the Arctic coincides with President Xi Jinping's foreign policy strategy.

The Russian Far East is a strategically important area. This region abounds in natural resources. Russia has always kept a close eye on its sparsely populated eastern region and until recently refused to let Chinese business into the region. However, the collapse of relations with the West over Ukraine left Russia with little choice. She had to turn to Beijing for help in financing and economic development, which allowed China to strengthen its strategic position in an effort to diversify energy sources.

Economic development quickly began in the Russian Far East. Now 45% of foreign investment in the capital of the region Khabarovsk is realized at the expense of Chinese capital. Vladivostok, thanks to Chinese money, has turned into a tourist center, although a few years ago both Far Eastern cities lagged far behind other Russian cities.

Similarly, China has shown interest in Central Asia as a potential region for expanding Eurasian trade flows and has secured energy, transport and infrastructure development projects under the Belt and Road Initiative. China believes that cooperation with it in the Arctic will help develop the rich and yet untouched natural resources of the region.

However, in implementing these projects, Beijing must adhere to the territorial integrity of Russia, as the Kremlin is tired of China having access to areas that could threaten Russian sovereignty.

Chinese arms exports, conventional and nuclear energy development and critical infrastructure

Arms export

Strengthening China's geopolitical position through investment in infrastructure in the Middle East, Africa and Europe could jeopardize Russia's traditional role as a major supplier of energy and weapons. Russia's economy and influence is heavily dependent on its energy and arms exports.

Russia is developing new weapons systems, but at the same time, China is poised to become the dominant arms exporter after decades of copying Russian technology and integrating those technologies into the defense industry. China has been gaining ground in countries with disappointing human rights records and has recently successfully sold weapons to several African countries (Algeria, South Africa, Kenya, Ivory Coast), continuing large sales to regional buyers Pakistan and Afghanistan.

Development of conventional and nuclear energy

The Kremlin has made clear its goal of becoming the dominant energy power in the Middle East and has recently signed a number of business deals in the region. But China is close to making energy deals in the Middle East, especially in Iran and Iraq. China recently acquired an 80.1% stake in the South Pars fields, which means it could become an exporter of natural gas to compete with Russia's Gazprom and Novatek.

And this is direct competition, since Russia views its energy exports not only as a means of acquiring the necessary petrodollars, but also as a geopolitical tool. China is pursuing the same goals through its One Belt, One Road project and, more recently, through its expansion into the nuclear energy export market. China is willing to wait, and its patience is paying off as the UK recently approved the Hinkley Point C power plant, of which Chinese infrastructure is an important part. Britain's behavior, which has horrified the US, could accelerate China's advance towards the rest of the world. Beijing plans to build 30 nuclear power plants under the One Belt, One Road project by 2030. Beijing and Moscow are cooperating in the development of nuclear technology, however, Russia is irritated by China's ambitions.

Acquisition of Critical Infrastructure

China is buying up other critical infrastructure in Eastern and Southern Europe and Greenland, further expanding its path to the West. With deals worth at least $255 billion across the European continent, China has reached 360 companies. It now partially or wholly owns four airports, six seaports, wind farms in nine countries, and thirteen professional football teams. Recently, China entered into an agreement on joint mining of uranium and rare earth metals between the governments of Greenland and China, which gave China almost exclusive control in this area.

External cooperation

Over the previous decades, China's influence has grown so much that it can now resist traditional hegemons such as Russia. However, for the time being, it is more profitable for China to maintain partnership relations. Moscow is wary of the plethora of Chinese projects as well as the rise of Chinese migrants in its territories, but is coping with its insecurities as it recognizes the need to bring in Chinese capital and manufacturing expertise to exploit untapped resources and build the necessary infrastructure to counter deteriorating relations. with the West.

Thus, both countries have found common ground on a number of issues, from mutual diplomatic support of the UN Security Council to military and economic cooperation. Maritime exercises in the Japan, South China and Baltic Seas reflect solidarity in areas of tension with Washington. Of course, these steps should show the unity of the two countries, the nature of which is not so optimistic, if you look a little deeper. For many years, China has sought to prove that it is necessary to have partnership relations with it as a source of capital, infrastructure and weapons. Now, having grown stronger, he will expand his influence, going beyond the ambitious One Belt, One Road project.

For now, China does not need problems in relations with Russia, since Beijing's immediate need for imported raw materials and the desire to focus on the implementation of the One Belt, One Road imply cooperation with Russia. Beijing has tried to ease Moscow's uncertainty about a Chinese invasion by promising economic benefits and respect for Moscow's security interests, while focusing on economic and industrial development. So far, this arrangement has worked for both sides and has even led Chinese troops to participate in the massive Vostok 2018 military exercise, a Russian military exercise usually held to prepare for a confrontation with China. It is unlikely that Russia suddenly began to consider its adversary an ally, but cooperation will continue.

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