US-China Trade War Update: Russia Kisses China Where It Hurts

Last updated on July 22nd, 2019

Donald Trump is touring the UK amid a trade war, so Xi Jinping decided to plan a trip for himself too – to Russia. Cracks in the US-China trade war appear to be deepening as Xi finds comfort in the company of Putin, amid souring relations with Trump.

The US-China Trade War is growing tense with each passing day, and every other tariff that is introduced by the two world leaders – US’ Donald Trump and China’s Xi Jinping. Experts from around the world were placing bets on the probable reconciliation between the two nations at war with each other, during the upcoming G20 Summit. But China chose to cozy up to Russia instead, and flip the entire plot upside down.

Currently, both the nations are experiencing the spread of negative narrative against each other. With anti-China sentiment on the rise in Washington and anti-US rhetoric ratcheting up in China via old war films and travel warnings, chances of a reconciliation in the June 2019 G20 Summit seem unimaginable at present. Especially, with China looking for support in Russia.

Changing Dynamics with Transforming Relations

Russia is openly and strategically capitalizing upon the US-China conflict. It is helping the world’s most populous country at a time when US was aiming to bring it down to its knees. Hard hitting tariffs were targeted by both Xi and Trump towards each other’s economy. The motto, however, didn’t appear to be weakening, but rather destroying two of the world’s largest economies, until Russia decided to walk into the scene and rescue one.

It isn’t surprising to watch China-Russia deepen their ties amidst tensions with the US. In fact, China recently threw hints about the same when president Xi said, “China has enough support for steady economic development,” indicating at the growing alliance with Russia – an old ‘best friend’.

By seeking comfort in Russia’s arms, China is giving out a bold message of not bowing down to the US. In fact, it is challenging the world superpower to gear up for what may come next, by teaming up with Russia.

While the US President is on a state visit to the United Kingdom, China is making sure it banks upon this buffer period, too. Thus, the Chinese president has gone vacationing himself, but on a 3-day relation-building trip that yields better opportunities for his country than the ongoing trade war does.

During Xi’s visit, Russian President Vladimir Putin even thanked the Chinese president for the alliance that has served both the countries in achieving a trade turnover of more than $100 billion a year. Xi will be spending three days in Russia on Putin’s invitation, which is coinciding the annual St. Petersburg International Economic Forum. The event also marks 70 years of Russia and China’s establishment of diplomatic ties.

Putin also added that the relationship shared by Russia-China has reached an “unprecedented level”.

With the approaching G20 Summit at the end of this month, the event was looked upon as an opportunity that puts an end to a tariff war going on for more than a year now. The solution – negotiating to a mutual trade deal. However, that doesn’t appear to be the case, as the two continue to not only fight, but also get even with each other by cultivating friendly relations with other nations than with each other.

Will anybody ever yield benefit out of the endless US-China trade war?

It is certainly neither the US nor China, but countries picking sides and becoming default beneficiaries of diverged trade flows that will end up drawing utmost profit out of the conflict, while we witness the downfall of two of the world’s largest economies.

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