China-Russia trade hits record high in 2023 amid decline in US commerce

Official data from Beijing revealed that trade between China and Russia reached a historic high in 2023, exceeding $240 billion, AFP reported.

This surge in bilateral trade surpassed the goal of $200 billion set by the two nations during their meetings last year. The figures marked a remarkable 26.3 per cent year-on-year increase, emphasising the strengthening economic ties between China and Russia, particularly in the aftermath of Moscow's invasion of Ukraine in 2022.

In contrast, trade between the United States and China experienced a decline for the first time since 2019, with commerce valued at $664 billion in 2023, down 11.6 per cent from the previous year.

Add WION as a Preferred Source

China's neutral stance on the Ukraine war, where it has refrained from criticising Moscow's invasion, has drawn criticism from Western countries. Despite geopolitical tensions, China-Russia trade has flourished, reaching new heights in 2023.

"The complexity, severity, and uncertainty of the external environment are on the rise, and we need to overcome the difficulties and make more efforts to further promote the growth of foreign trade," AFP quoted Wang Lingjun, vice minister of the General Administration of Customs as saying.

The data also revealed a decline in China's exports and imports, with exports falling by 4.6 per cent and imports down by 5.5 per cent over the year.

This marks the first retreat in exports since 2016. Meanwhile, on the domestic economic front, China faced deflation for the third consecutive month in December. The consumer price index (CPI) fell by 0.3 per cent year-on-year, indicating a persistent decline in prices since September.

The prolonged period of deflation poses challenges for the broader economy as consumers tend to delay purchases, potentially leading to reduced production, hiring freezes, and layoffs. In contrast, inflation in the United States stood at 3.4 per cent in December.

The economic landscape in China is further underscored by gloomy figures, with producer prices sinking by 2.7 per cent, marking the 15th consecutive month of declines.

The producer price index (PPI), a key indicator reflecting the cost of goods leaving factories, provides insights into the economic health of the nation.

The PPI's 3 per cent fall in November highlights the ongoing challenges faced by Chinese industries.

(With inputs from AFP)