Russia’s colossal economic shift toward Asia in energy, finance, and infrastructure deepened at this year’s APEC summit in Beijing with 17 major bi-lateral business deals with China. The strategic alliance could crowd out other global players.
The deals signed by the world’s second and eighth largest economies reflect a ‘synergy’, as natural resource rich Russia has a lot to offer a country with one of the world’s fastest growing populations and economies, Martin Jacques, columnist and author of When China Rules the World, told RT.
“Russia is very rich in natural resources and China is very poor so there is a natural synergy in their economic relationship. Russia has something to offer China which China needs,” he said.
Both Russia and China are also uncomfortable with the current US-dominated world order, although not in quite the same way, says Jacques.
“Russia’s interests, needs, and status is not respected and I think that is essentially the problem. China acknowledges the importance of the international order, definitely wants to be part of it, but at the same time it doesn’t feel it has got the same stake in that system as for example the US,” he said.
The headline stealing accord was, of course, the deal between Russia’s Gazprom and China National Petroleum Corp. When completed the western pipeline will deliver up to 30 billion cubic meters of gas in addition to the 38 billion annually agreed in May.