China Russia Photo: VCG

 
Chinese and Russian trade have witnessed a remarkable growth of 51.9 percent from January to May, as indicated by data from China's General Administration of Customs on Wednesday. Both imports and exports have experienced double-digit growth, highlighting the strong partnership and high complementarity between the two countries.

The promotion of local currency settlement in bilateral trade has played a significant role in driving this growth, as companies from both sides seek de-dollarization to reduce costs and risks.

During the first five months, the value of China-Russia trade reached 646.1 billion yuan, representing a 51.9 percent increase. China's exports to Russia amounted to 296.17 billion yuan, marking an 89.7 percent year-on-year growth, while imports from Russia recorded 349.93 billion yuan, indicating a 29.9 percent growth.

This positive trend follows the upward trajectory of bilateral trade. In 2022, trade between the two countries reached a record high, with China remaining Russia's largest trading partner for 13 consecutive years. Furthermore, the two countries have continued to deepen their cooperation across various sectors.

The growth in trade is primarily driven by the increased supply of energy resources, accounting for approximately 75 percent of Russia's total exports to China. This has become the driving force behind economic and trade exchanges between the two nations.

In addition, Russia has increased its imports of agricultural products such as rapeseed oil, barley, and beef, while China has maintained its export advantages in mechanical and electrical products to Russia, highlighting the strong complementarity between the two countries.

Russia has increased its imports of agricultural products such as rapeseed oil, barley, and beef, while China has maintained its export advantages in mechanical and electrical products to Russia, highlighting the strong complementarity between the two countries. 

In February, the yuan surpassed the dollar in monthly trading volume for the first time, with the difference becoming even more pronounced in March, according to Bloomberg.

Driven by the substantial amount of bilateral trade, which is expected to exceed $200 billion this year ahead of the target, Russian officials have actively advocated for settlement in the Russian ruble and the yuan. This move is also motivated by the strategic need to reduce dependence on the US dollar in light of Washington's unilateral sanctions.