New Developments in China - Russia Trade: Export Value Declined in July, Import Increased Steadily!

In July 2024, Chinas exports to Russia saw their first decline since the rebound in June. According to statistics from the General Administration of Customs, the export trade volume to Russia in July was $9.99 billion, a year-on-year decrease of 2.8%. This data marks the end of a brief recovery in Chinas exports to Russia, signaling a return to a downward trend. Previously, Junes export data showed a growth rate of 3.5%, but this positive trend did not continue into July.

Despite this, Julys export data still showed a month-on-month increase of 1.1% compared to June. This indicates that although the threat of U.S. sanctions on foreign banks trading with Russia has had some adverse effects on Chinas exports to Russia, the overall export volume has maintained relative stability. This phenomenon reflects the resilience and adaptability of Chinese enterprises in responding to international political and economic pressures.

Overall, in July 2024, the total trade volume between China and Russia reached $19.7 billion, a year-on-year increase of 1.5%. Among this, the import volume was $9.71 billion, a year-on-year increase of 5.4%. This shows that despite weak export performance, Chinas imports from Russia continue to grow steadily, further consolidating the economic and trade relations between the two countries.import and exportIn the first seven months of this year, the total import and export volume between China and Russia reached $136.67 billion, a year-on-year increase of 1.6%. Among this, exports amounted to $61.64 billion, a year-on-year decrease of 1.1%, while imports amounted to $75 billion, a year-on-year increase of 3.9%. This series of data indicates that despite the severe international environmental pressures on Chinas exports to Russia, the total bilateral trade volume still maintains positive growth, especially in imports, where the growth momentum is evident.

China-Russia trade relations have always been deeply influenced by the international political and economic environment. In recent years, as the West has imposed a series of sanctions on Russia, the economic cooperation between China and Russia has become closer. Particularly with the increasing uncertainty in European and American markets, Russias economic dependence on China has gradually deepened. This dependence is reflected not only in the supply of energy and raw materials but also in Chinas exports of machinery, electronic products, and consumer goods to Russia.

However, the decline in export volume in July also exposes the challenges faced by China-Russia trade. First, the threat of U.S. sanctions on foreign banks involved in trade with Russia has increased the risks for Chinese enterprises trading with Russia, which has somewhat suppressed export growth. Second, global economic uncertainty, energy price fluctuations, and supply chain adjustments have all had potential impacts on China-Russia trade relations.

Despite this, the trade prospects between China and Russia remain resilient. The two governments are gradually deepening cooperation in multiple fields, from energy to infrastructure construction to high-tech industries, with bilateral economic and trade relations moving towards greater diversification. At the same time, Chinese enterprises are actively adjusting their strategies, seeking to reduce dependence on single markets through diversified market layouts and product line expansions.

In the future, China-Russia trade relations will continue to evolve in a complex international environment. Although there may be some short-term fluctuations, in the long term, there is still significant potential for economic cooperation between the two countries. Chinas import growth from Russia, especially in the energy and raw materials sectors, highlights the importance of China-Russia economic and trade relations in the global supply chain restructuring. On the export side, Chinese enterprises may need to increase efforts in innovative products, service quality improvements, and emerging market expansions to cope with changes and challenges in the international market.

New Dynamics in China-Russia Trade: July Exports Decline While Imports Grow Steadily!