President Putin’s China Visit: Game Changer in Global Politics and Economy II

Dr.Syed Mehboob

Economic and Political Analyst

http//: www.thenewslark.com

Putin’s intention in visiting Beijing and Harbin was to emphasize the strategic partnership with China and to demonstrate that Russia is not only not internationally isolated but also is developing relations with partners that oppose the West’s dominant position in the world. Developing cooperation with China is crucial for Russia for economic, military, and political reasons because both countries are seeking to shape a new multipolar world order. Putin took a number of ministers, including the former and current defence minister, governors and heads of major state-owned corporations mainly from the energy, raw materials and banking sectors. This indicates long term, strategic and expanding cooperation between the two countries in many areas of the economy, including energy, automotive, and agriculture. The visit also inaugurated the Chinese year in Russia and the Russian year in China, becoming part of the celebrations of the 75^th anniversary of the establishment of diplomatic relations. Both countries regard them as an example of peaceful cooperation.

From Xi’s perspective, the choice of China as the first destination for a visit after the inauguration of Putin’s presidency was significant in terms of image, it confirmed China’s primacy in bilateral relations, as well as the willingness of the two countries to cooperate strategically in the competition with the U.S. Putin’s visit was meant to confirm Russia’s willingness to strengthen this cooperation and to set a further framework for it, beneficial to China’s interests, especially as the international situation is good for them, as confirmed by  president Xi’s recent visit to France,  the German and French declarations of readiness for economic cooperation, and the German and Swedish opposition to the EC’s tightening trade policy towards China, including anti-subsidy proceedings against Chinese electric vehicles. The effects of the visit confirm the maintenance of strategic cooperation between China and Russia. The political dimension, related to anti-Western rhetoric at the highest level, is complemented by intensive working contacts at the level of heads of government and ministers of individual ministries. The Chinese position does not indicate that it is limiting its support for the Russian economy, including the supply of dual-use goods. The declaration by China and Russia of military coordination and joint exercises (including in the Asia-Pacific) may increase security risks for Western countries. The agreements on mass media concluded during the visit further suggest that coordination on information sharing and countering negative propahanda against both the countries have been given due importance.

Russia is also a permanent member of United Nations Security Council (UNSC) and enjoys veto power.It has an area of 17,098,246 sq km which is twice larger than USA, the largest among the 234 countries of the world and is 11% of the total earth mass. It has the world’s fourth largest coastline of over 37,653 kilometers. Russia by landmass is larger than three continents, and has the same surface area as Pluto. Russia as one of the world’s only three countries bordering three oceans, has links with a greater number of seas. Russia is a home of over 100,000 rivers and has one of the world’s largest surface water reserves, with lakes containing approximately one quarter of the world’s liquid fresh water. Lake Baikal, the largest and most important among Russia’s fresh water bodies is the world’s deepest, purest, oldest most capacious fresh water lake, containing over one fifth of the world’s fresh surface water. Russia is second only to Brazil by total renewable water resources.

China is very important global player in politics and economy.China is a country in East Asia. It is the world’s most populous country, with a population of around 1.4 billion, covering about 9.6 million square kilometers. It is the world’s third largest state by area.China is the factory of the world. In 1970 its global production contribution was only 3% now it is 25%, it is exporting to about 200 countries and producing about 80% of world’s air conditioners, 70 % mobiles, 60% shoes, 74% solar cells, 60 % cement, 50% coal, 45% ship building, 50% steel, is being produced by just one country “CHINA”. It is now the world’s largest economy with GDP of $ 35.032 trillion (PPP). It is also the largest exporter of the world with $ 3.3 trillion export. It is surprising that 90% American flags were  also manufactured by China. It is normally thought that China can only produce cheap goods but people are highly surprised when they are told that 60% of the most branded luxurious items are produced in China. In 1970s it was poorer than African countries. In 1978 its per capita was just $ 155 dollars while it jumped to $ 7,590 which is 49 times increase. It lifted more than 800 million people from poverty. Its mass production policies destroyed the price structure of most of the world’s famous companies and countries. It has competitive edge over many countries due to its mass scale production. Its workforce is highly trained, efficient, active, vibrant and experienced. China is the largest economy in the world by PPP since 2014, the world’s second largest economy by nominal GDP since 2010, and the largest economy in Eurasia. Since the introduction of economic reforms in 1978, China’s economy has been the world’s fastest growing major economy, with annual growth rate consistently above 10%. According to the World Bank China’s GDP grew $ 150 billion in 1978 to US$ 12.24 trillion by 2017 and is US$ 35,032 billion in 2024.  China also recorded the fastest rise in GDP per capita in the world from 1960 to 2018. China is the largest exporter and second largest importer of the world after America. One of the world’s foremost infrastructural giants China has the world’s largest bullet train network, the most super tall skyscrapers in the world. China borders with 14 countries, more than any other country except Russia.

China borders with Vietnam, Laos, and Myanmar (Burma) in South East Asia, India, Bhutan, Nepal, Afghanistan, and Pakistan in south Asia, Tajikistan, Kyrgyzstan in Central Asia and Russia, Malaysia and North Korea in Inner Asia and North East Asia. China shares Maritime boundaries with South Korea. China is the largest manufacturer of the world, 2nd high tech manufacturing since 2012, it is the second largest retail market in the world, it leads world in e commerce accounting 50% of the global market in the world. It is also world leader in the electric vehicles, manufacturing and buying half of the entire plug in electric cars in the world. China has 174 GW of installed solar capacity by the end of 2018, which amounts more than 40% of the global solar capacity. China is first in the world in total number of billionaire and second in millionaires. There were about 658 billionaires, 3.5 million millionaires. China has higher percentage of people as 100 Chinese are 10% of the wealthiest individuals in the world. China has the world’s largest middle-income population.China became the world’s largest trading nation in 2013 as measured by the sum of imports and exports; it is also the world’s largest commodity importer about 45% of Maritime’s dry bulk market. By 2016 China was the largest trading partner of 124 countries. It is the largest trading partner of ASEAN comprising 15.2 % of ASEAN’s total trade. In 2020, China became the largest trading partner of the European Union for goods, having the total volume of US$ 700 billion. China along with ASEAN, Japan, South Korea, Australia and New Zealand, is a member of the Regional Compressive Economic Partnership, the world’s largest free-trade area covering 30% of the world’s population and economic output.Chinese African trade volume crossed US$ 210 billion having grown more than 20 times over two decades. According to Madison Condon, “China finances more infrastructure projects in African than the World Bank, providing low interest loans to African countries. China is the largest trading partner with Brazil, Chile, Peru, Uruguay, Argentina etc. China’s Belt and Road Initiative (BRI) has expended significantly over the last five years and , includes 150 countries and 30 international organizations. Maritime Silk Road is another significant initiative which connects to East Africa, Europe and other areas and investment in Gwadar, Kuantan, Hambantota, Piraeus and Trieste.

China would be the largest economy in nominal GDP by 2028. It is the world’s largest manufacturing economy and exporter of goods. It is also the world’s fastest growing consumer market and second largest importer of goods. China has four of the world’s top ten most competitive financial centers and three of the world’s ten largest stock exchanges both by market capitalization and by trade volume. China is the largest recipient of Foreign Direct Investment (FDI) as of 2020 receiving inflow of US$ 163 billion. It has the second largest outward foreign direct investment at US$ 136.91 billion for 2019 alone. According to the 2019 Global Wealth Report by Credit Suisse Group (CSG) China surpassed the USA in the wealth of the top ten percent of the world’s population. China has world’s largest foreign reserves worth US$ 3,100 billion and if the foreign assets of China’s state-owned commercial banks are included, the value of China’s reserves rises to nearly US$ 4,000 billion. With about 778 million workers, the Chinese labour force was the world’s largest as of 2024. China ranks number one in patents, utility models, trademarks, industrial designs and creative goods exports. It also has two Shenzhen-Hong Kong–Guangzhou and Beijing in the 2^nd and 3^rd spots respectively of the global five sciences and technology clusters, which is more than any other country. As of March 2022, China has over 500 million 5G users and 1.45 million base stations installed.

ECONOMY

Population : 1,409 million (2024)

GDP Nominal : US$ 19,910 billion  (2024)

GDP (PPP) : $ 35,032 billion ( 2024)

GDP rank: 2^nd nominal and 1^st PPP (2024)

GDP per Capita: $ 14,096 Nominal (2024)

: GDP PPP            $ 24,839 (2024)

GDP Growth

GDP by sector

Exports : US$ 3,364 billion (2023)

Main Export partners: EU 14.8%USA 14.8%, ASEAN 15.5%  Hong Kong 8.2% , Japan 4.66 % , South Korea 4.40 % India 3.48%,  Russia 3.28% Others 23.33%

Imports : US$ 2,687 billion  (2023)

Import partners: EU 11.02% ASEAN 15.8%, South Korea 6.33 % Japan 6.28%, USA 6.42% , Russia 5.05%

( To be continued )