"Russia-China Alliance Could Launch New World Order" Topic

And So It Begins…

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Amid the fanfare and fireworks of Russia's Victory Day celebrations in May, President Vladimir Putin held a prolific round of talks with his Chinese counterpart Xi Jinping, signing 32 deals aimed at further shoring up ties between two superpowers unimpressed with Western dominance in the international community.

Key among these agreements was the decision by Putin and Xi to link their countries' key integration projects: the Russian-led Eurasian Economic Union and China's Silk Road Economic Belt. "Essentially, we seek ultimately to reach a new level of partnership that will create a common economic space across the entire Eurasian continent," Putin said of the agreement after the talks.

So long as this deal proves capable of materializing beyond diplomatic rhetoric, it will have long-lasting consequences for international relations at large, analysts interviewed by The Moscow Times said. Furthermore, by agreeing to deal directly with the Eurasian Economic Union, China has moved to dispel speculation that Putin is interested only in restoring Russia's former Soviet glory, experts said. Finally, the deal reveals a lack of desire on behalf of both countries to create a Cold War-like atmosphere, wherein Moscow and Beijing would find themselves competing against one another for influence in Central Asia.

Both countries come into the deal with plenty to offer the other. China has an enormous construction industry and manpower to match. In view of a decrease in the number of large-scale projects at home, these resources could be used to help build up transportation links and infrastructure throughout Eurasia.

In turn, Russia brings to the table diplomatic experience and security expertise specific to Central Asia.

"The logic of the Russia-China relationship has changed. A strategic partnership between the two has become a reality. Other states will have to learn how to deal with this new reality," said Alexander Gabuyev, chairman of the Russia in the Asia-Pacific Program at the respected Carnegie Moscow Center think tank.

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The ill-fated alliance between Germany and Russia in WWII comes to mind.

Apparently, some don't seem to learn, when making deals with nations quickly rising in strength, that could easily turn out to be a very dangerous foe.

I shall watch this situation with interest.

So an economy already in trouble makes an alliance with an economy that may be headed the same way. Okay.

@kyoteblue

It was Tom Clancy in his book The Bear and the Dragon, though they were antagonists in that novel with the Russkies being the good guys.

China will buy any resources Russia will offer.
Russia will take any money China gives them.
That does not mean they have a lot of wider common interests.

They do have a common interest, to counter what they perceive as 'undue' American dominance in the world. The salient question is, do they see us as a greater evil to a sufficient degree which allows them to put their own differences aside and unite against us?

Since they hate each other, I expect such a thing to fail even faster than the EU.

-Kle.

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"Two events in May have confirmed strategic shifts by China and Russia. Both shifts simultaneously – and paradoxically – mark a strengthening of their ties, an uneven relationship and competition between them in Eurasia."

A Sino-Russia relationship will do very well… while it suits China. But with no other market to fall back on, where does that leave Russia once it is dependent on China? "Yes comrade, I know we agreed the price, but we have decided we don't want to pay that much any more. Oh, you don't like that? Well find someone in Europe willing to pay it…"

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"Ukraine is ranked as the world's sixth-largest arms exporter. The former Soviet republic inherited a substantial portion of Moscow's weapons expertise and military industry: About 30 percent of all Soviet defense industries are located inside Ukraine. As a result, over the past two decades, Ukraine has binged on arms sales, exporting advanced Soviet weapons surpluses. And Kiev's biggest customer has been China…

There are two reasons why China wants so many weapons from Ukraine.

First, the arms are cheap, often costing Beijing a fraction of what it would have to pay for similar systems from Russia, China's other main source of arms imports.

Second, and more important, China can get Soviet- or Russian-designed advanced weapons without Moscow complaining that Beijing is violating Russian intellectual property rights."

Interesting times ahead

I hope you aren't suggesting that Russia's interest in the Ukrain is anything other than the security of its people.
Nobbling your arms market competitor is just too base a reason.

Well it was noted that after the first Russian 'aid convoy' left Ukraine, a helicopter manufacturing plant near Lughansk was also missing half it's components…

(Actually, no, I was noting that China has been buying most of its hardware technology through Ukraine and will only snuggle up with Russia while the price suits. Once Russia is well and truly committed, with no viable alternative, then China could well decide that price is a little too high)

Security of its people? The people living in eastern Ukraine were almost all Ukrainian citizens, not Russian citizens, whatever their original ethnic origin.

I wonder what the situation would be if other nations decided they could take control based on a predominant ethic population? Hmm, a potential several million Chinese live and work in the resource rich Far East Federal District of Russia…

Geoff – just because Russia is doing it to the Ukrain doesn't mean China can do it too Russia – two wrongs don't make a right. Next you will be wanting responsible, accountable government… and of course world peace.

I doubt that either can afford to do all these "wonderful" cooperative things. Both economies are doing poorly at this time. Russia being the worst.

By nature, both countries seek to dominate their neighbors.

With this mentality firmly set in place, they are unwilling to make agreements that last beyond their immediate needs nor which will give their rival any leverage.

Well it looks like the Chinese economy has taken that predicted dump. The market has had a nearly 30% drop since it peaked on June 12. By early July, $2.8 USD trillion in value has been wiped out.

The Shenzhen market is down 40%, and the Shanghai over 31%.

Trading was suspended today, for over 1,400 companies on the Chinese exchanges. While that doesn't sound like a lot, that is apparently more than half the companies listed there.

There is no confirmation that the Chinese/Russian accords have had a direct impact on their falling stock prices.

Looks like things just got interesting, and oil is back down into the low $50 USDs.

I suspect it will go lower, shortly.

There was an 8% drop in oil prices due to the Chinese market.

Of course it is the Chinese interest to keep the Russian economy weak… it enables them to negotiate better deals that Russia then cannot back out of.

I suppose they could always try trading with Europe.

Well they can share in their misery.

I didn't even get done worrying about how the world is ending from the last thing, and now we're already on to the next one?