Just like his predecessor, Joe Biden has been pursuing equally tough policy on China. Some analysts point out ominous signs of the imminent economic war between Washington and Beijing. One of such precursors is the fact that Beijing is scaling back its holdings of the US public debt. Currently, mainland China is the second largest foreign owner of US Treasuries, notes, and bonds worth $1.1 trillion. Another reason that tensions between the two largest global economies are about to reach the boiling point is that Beijing is eager to team up with Russia to withstand Washington’s rhetoric. Indeed, Moscow and Beijing are united by some common goals. For example, they are both interested in de-dollarization and expanding mutual trade turnover.
Interestingly, despite political jitters, China has a massive trade surplus with the US. In other words, China exports more goods to the US than imports goods from the US. According to China’s Customs Administration, the trade turnover between China and Russia shrank 2.9% in 2020 to $107.76 billion on a yearly basis. At the same time, China’s trade surplus with the US widened by 8.3% to $586.72 billion in annual terms. No wonder, demand for the goods made in China remains strong even at the pandemic peak because its other trade rivals are not so resilient.
All in all, being equally influential partners, both the US and China have to reboot their long-lasting relations. When it comes to China’s partnership with Russia, it can be hardly called mutually beneficial. Beijing is sure to carry on buying oodles of commodities from Russia at bargain prices. While Moscow is dreaming about friendship with China, Beijing is forging ahead with the Silk Road Economic Belt project, the brainchild and the centerpiece of Xi Jinping’s foreign policy. The project will pave the way to trouble-free exports to Europe evading Russia. As a result, Russia will lose significant budget revenue.
