Global Outlook: what economic support can China lend Russia?

In EIU’s latest global outlook video Agathe Demarais and Nick Marro discuss whether China will want to, and be able to, provide Russia with economic and financial support in the coming years.

Despite warming relations prior to the start of war in Ukraine, EIU expects China to adopt a cautious approach when it comes to providing Russia with economic and financial support. This is primarily due to Western sanctions. Even though the Chinese government has criticised these measures, Chinese companies will still want to abide by them.

“Access to US and European markets – and, more significantly, access to the US dollar – is still incredibly important for Chinese companies, more so than any opportunities in expanding their market footprint in Russia.”

NICK MARRO, GLOBAL TRADE LEAD, EIU.

Yet this does not mean that China’s support to Russia will remain minimal. EIU expects co-operation to deepen in the energy sphere, notably, as China will seek to gain advantage of Russia’s vast commodities resources. 

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