The ExpoElectronica conference in Russia is an annual event where tech companies showcase their products and make deals with decision-makers, including those in the security and military sectors. In the 2024 conference, Chinese companies outnumbered Russian companies, indicating China’s growing presence in the Russian economy. The increasing Chinese participation at the ExpoElectronica events in recent years reflects Beijing’s expanding influence in advanced technology that is increasingly difficult for Russian companies to access due to Western sanctions imposed after Russia’s invasion of Ukraine.
Several companies exhibiting at the ExpoElectronica have been sanctioned by the U.S. for aiding Russians in evading trade restrictions. These companies provide essential electronics, including semiconductors, that Russian firms heavily rely on. The relations between China and its Western rivals have become strained due to Beijing’s tacit backing of Russia’s actions in Ukraine. Despite Chinese President Xi Jinping framing China as a neutral nation, the growing trade relationship between China and Russia tells a different story. China is now Russia’s largest trade partner, with business between the two countries expanding to record levels, while Beijing has largely refused to back Western sanctions on Russia.
The U.S. is considering implementing new sanctions on Chinese banks facilitating trade with Russia, further complicating cross-border trade. This move has led to delays in payments between Russian and Chinese companies, with some facing payment delays as long as six months. The growing personal relationship between Russian President Vladimir Putin and Chinese President Xi Jinping has practical implications, with China becoming Russia’s largest source of dual-use goods. Despite potential disruptions caused by new sanctions, it is unlikely to alter the trajectory of the Russia-China relationship, as both countries see each other as partners in reshaping the global order.
The close alignment between Russia and China poses challenges for American policymakers seeking to drive a wedge between the two countries. Despite speculation that Beijing may leverage Moscow’s increasing reliance, Russian involvement in key Chinese issues has been limited. The ultimate goal of China in strengthening its relationship with Russia remains unclear, but the deepening ties between the two countries suggest a resilient partnership that is unlikely to be easily disrupted. The relationship between Russia and China, driven by the personal rapport between Putin and Xi, appears to be based on mutual interests and shared agendas, with both countries working towards reshaping the international order to their advantage.
