4 ways China is quietly making life harder for Russia
S E E D E D C O N T E N T
(Photo credit: NY Times)
China is quietly distancing itself from Russia's sanction-hit economy.
The two states proclaimed last month that their friendship had "no limits." That was before Russia launched its war in Ukraine.
Beijing also gave its full backing Wednesday to comments made earlier this week by China's ambassador to Ukraine. "China will never attack Ukraine. We will help, especially economically," Fan Xianrong was quoted as saying in a press release from the Lviv regional government.
Letting the ruble drop
China's currency, the yuan, doesn't trade completely freely, moving instead within bands set by officials at the People's Bank of China (PBOC). Last week, they doubled the size of the ruble trading range, allowing the Russian currency to fall faster.
The ruble has already lost more than 20% of its value against both the dollar and euro since the start of the war in Ukraine. By allowing the Russian currency to fall against the yuan, Beijing isn't doing Moscow any favors.
Russians will have to pay more in rubles for Chinese imports such as smartphones and cars. Chinese phone brands like Xiaomi and Huawei are hugely popular in Russia, and were vying with Apple (AAPL) and Samsung (SSNLF) for market leadership before the war.
If China allowed Moscow to convert its yuan reserves into US dollars or euros, "that would clearly help Russia's current impasse," García-Herrero noted. However, "the reputational risk of potentially breaching Western sanctions would be a huge step for the PBOC to take and therefore makes it highly unlikely," she said.
"The long-term gains of moving closer to Russia might not match the impact of Western investors suddenly losing interest in China," she added.
Withholding aircraft parts
Sanctions imposed by the United States and the European Union mean that the world's two major aircraft makers, Boeing (BA) and Airbus (EADSF), are no longer able to supply spare parts or provide maintenance support for Russian airlines. The same is true of jet engine makers.
That means Russian airlines could run out of parts within a matter of weeks, or fly planes without having equipment replaced as frequently as recommended to operate safely.an that the world's two major aircraft makers,
Earlier this month, a top Russian official said that China has refused to send aircraft parts to Russia as Moscow looks for alternative supplies. "As far as I know ... China refused," Kudinov was quoted as saying.
Freezing infrastructure investment
The World Bank has halted all its programs in Russia and Belarus following the invasion of Ukraine. It hadn't approved any new loans or investments to Russia since 2014, and none to Belarus since 2020. More surprisingly, perhaps, is the decision by the Beijing-based Asian Infrastructure Investment Bank to do the same. In a statement earlier this month, it said it was suspending all its activities related to Russia and Belarus "as the war in Ukraine unfolds." The move was "in the best interests" of the bank, it added.
The AIIB's decision to suspend activities in Russia means $1.1 billion of approved or proposed lending aimed at improving the country's road and rail networks is now on hold.
Tags
Who is online
91 visitors
China is quietly distancing itself from Russia's sanction-hit economy. The two states proclaimed last month that their friendship had "no limits."
That was before Russia launched its war in Ukraine.
It was before Russia showed the world who the JV really are...
Letting the ruble drop
China's currency, the yuan, doesn't trade completely freely, moving instead within bands set by officials at the People's Bank of China (PBOC). Last week, they doubled the size of the ruble trading range, allowing the Russian currency to fall faster.
By allowing the Russian currency to fall against the yuan, Beijing isn't doing Moscow any favors.
Russians will have to pay more in rubles for Chinese imports such as smartphones and cars. Chinese phone brands like Xiaomi and Huawei are hugely popular in Russia, and were vying with Apple (AAPL) and Samsung (SSNLF) for market leadership before the war.
"The long-term gains of moving closer to Russia might not match the impact of Western investors suddenly losing interest in China," she added.
looking at deals for the Samsung A23 for about $149.00 for an unlocked phone
which is now 23,000 to 17,000 ruples in Russia.
Recently I heard that a Ruble was worth about a Penny (U.S. currency). Just checked-- its now become worth even less now!
Freezing infrastructure investment
. . . more surprisingly, perhaps, is the decision by the Beijing-based Asian Infrastructure Investment Bank to do the same. In a statement earlier this month, it said it was suspending all its activities related to Russia and Belarus "as the war in Ukraine unfolds." The move was "in the best interests" of the bank, it added.
The AIIB's decision to suspend activities in Russia means $1.1 billion of approved or proposed lending aimed at improving the country's road and rail networks is now on hold.
I wonder if Xi and Putin are having any conversations about Vladivostok lately.
My guess is that they have other more important things on their minds lately!
(For further information, pick up any newspaper and take a quick glance at the headlines
)
I have been saying all along that China has been doing whatever it can to exclude itself from involvement in this war. Notwithstanding having been PUSHED into deepening its ties with Russia by America (i.e. America's demonization of Chine, its sanctions on China, its efforts to contain China by means of organizing groups of nations to encircle and isolate China, its banning Chinese businesses from operating in the USA and banning Americans from investing in certain Chinese corporations, its nuclearization of the seas surrounding China, its threating China from taking any step towards contravening its sanctions or doing anything whatsoever to assist Russia, its causing the closing of the Chinese consulate in Houston without proving its complicity in spying, and even after breaking into it contrary to International protocol unable to come up with one iota of such evidence, its interference in the domestic affairs of China, its contravening its promise to China about the One Nation Policy, etc etc etc) America now wonders why China will not walk lockstep with it on the Ukraine issue, but instead abstains along with the nations that represent about 2/3rds of humankind on Earth.
Why? Well, one reason might be because China's relationship with Ukraine is of major importance, just as having a friendly relationship with a major nation that shares its border and is more closely identified with its politics, is respectful of China and prefers the benefits of friendship and cooperstion rather than confrontation. On the other hand, China relies on Ukraine for much of its wheat, and also Ukraine is a valuable link to Europe for the Belt and Road Initiative which is of major importance to China. As well, it was recently pointed out in an article posted by a member on NT that China is bound by agreement to defend Ukraine in the even a nuclear aspect is involved against Ukraine.
The only involvement China has entered into was to provide humanitarian aid to assist the Ukranians, being careful to comply with its neutrality and not to do so much as to be an indication of favouritism (but having to weather criticism for it anyway). I think they can do more, and I believe will probably do a lot more when this is all over.
Notwithstanding all of that, there are many, including members on this site, who continue to insist that China has taken sides with and supports Russia in this conflict. Why? Because China calls it a "crisis" instead of an "invasion". Nobody remembers that this "crisis" actually started EIGHT YEARS AGO. So do as General Bullmoose tells you to do or else face the ire of the world's policeman.
I like your new avatar!
(Although often now-a-days when I starting looking through the comments section on NT I start feeling like I'm in a Buddhist Monastery. Why?)
So do I, especially since I have a shrine to Bodhisattva GuanYin in my living room, and on special Buddhist days incense is lit in my home.