© . FILE PHOTO: US President Joe Biden holds virtual talks with Chinese President Xi Jinping from the Situation Room at the White House in Washington, US, March 18, 2022. The White House/Handout via REUTERS By David Lawder WASHINGTON () – US President Joe Biden’s warning of “consequences” for any aid China could give to Russia’s war effort in Ukraine is designed to force Chinese President Xi Jinping to prefer a long-term lucrative trade relationship with the West over a growing one. strategic partnership with Moscow. On the basis of trade flows alone, both China and the United States have a lot at stake after Biden’s nearly two-hour video call with Xi on Friday, during which the White House confirmed sanctions against Beijing were an option. Despite growing trade ties with Southeast Asia and an economy less reliant on trade over the past decade, China’s economic interests remain deeply intertwined with Western democracies, trade data reviewed by shows. The side of political ally Russia would make little economic sense for China, analysts say, as the United States and the European Union still consume more than a third of China’s exports. “On the purely economic issue, if China had to make the choice — Russia versus everyone else — I mean, it’s a good idea for China because it’s so integrated with all these western economies,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics think tank in Washington that closely monitors Chinese trade. Chinese Ambassador to the United States, Qin Gang, emphasized China’s close relationship with Russia on Sunday. “China has normal trade, economic, financial and energy partnerships with Russia,” Qin told CBS’s “Face the Nation” program when asked whether Beijing would provide Moscow with financial assistance. “These are normal business between two sovereign countries, based on international laws, including WTO (World Trade Organization) rules. Attacking Beijing with the kind of broad economic sanctions imposed on Russia could potentially have serious consequences for the United States and the United States. rest of the world, as China is the world’s second largest economy and the largest exporter.As the Chinese economy has grown to $16 trillion over the past 20 years, its reliance on trade with other countries for its economic well-being has diminished. Title: Trade Share in China’s Economy Drops to 1990s Levels Trade Share in China’s Economy,https://graphics.reuters.com/USA-TRADE/CHINA/zdvxokzqzpx/chart.png As Chinese citizens get richer, the domestic consumption and services account for a larger share of the Chinese economy, but China is still more dependent on trade, accounting for about 35% of GDP, than the United States. States with 23% or Japan with 31%. The wealthy G7 nations at the heart of an anti-Russia alliance after the invasion of Ukraine last month still consume more than a third of China’s exports. That’s a drop from nearly half of China’s exports nearly two decades ago, but a relatively stable share since 2014, when Russia annexed Ukraine’s Crimea region. Title: Chinese exports still dominated by US and western allies, https://graphics.reuters.com/UKRAINE-CRISIS/TRADE-CHINA/jnvwebqbavw/chart.png Share of Chinese exports to Southeast Association countries Asian Nations (ASEAN), with which China recently signed new trade agreements, has doubled to about 15%, eclipsing Japan in importance. But China’s January-February 2022 trade data showed that exports to the European Union grew the most at 24%. MOBILE PHONE OIL Russia’s overall trade with China has increased since the West first imposed sanctions on Moscow in response to the annexation of Crimea. But Chinese exports to Russia have remained between 1% and 2% for the past 20 years. Russian imports from China follow those of many other countries, with electronics and consumer goods including mobile phones, computers, clothing, toys and footwear topping the list. Title: Russia’s top imports from China: electronics, clothing Russia’s top imports from China: electronics, clothing, https://graphics.reuters.com/UKRAINE-CRISIS/TRADE-CHINA/lgpdwarzavo/chart.png China exported 10 times as much mobile phones, by value, to the United States alone, at $32.4 billion in 2020, based on UN Comtrade data. China’s imports from Russia are dominated by oil. At $27 billion in 2020, and other petroleum, all other imports from Russia, mainly commodities, including softwoods, liquefied, coal, metals and ores are shrinking. Title: China’s top imports from Russia: all about oil, https://graphics.reuters.com/UKRAINE-CRISIS/TRADE-CHINA/xmvyuzddpr/chart.png Twisting Western sanctions on China would cause significant problems for the United States , which relies heavily on China for imports of important consumer goods, from computers and mobile phones to toys and textiles. Title: Few Alternatives To Top Import From China From China Few Alternatives To Top Import From China, https://graphics.reuters.com/UKRAINE-CRISIS/TRADE-CHINA/jnpwekgdnpw/chart.png “In America, we don’t depend on the Russian economy — almost for nothing,” Bonnie Glick, director of Purdue University’s Center for Tech Diplomacy, told a Commerce Department forum Monday. “But an economic or trade war with China would have huge consequences,” Glick said, adding that it was important for the United States to reduce its trade dependence on China.
