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Russia has nowhere else to go now that western markets are closed to them. China will be able to buy natural gas and oil nearly at cost because nobody else is w
by 5e92cb50239222b 5y ago
Russia has nowhere else to go now that western markets are closed to them. China will be able to buy natural gas and oil nearly at cost because nobody else is willing to buy them, and gets to dictate the prices it's willing to pay. It also gets a large market for the products of its industry with close to zero competition.
At least that's the general feeling among Russian economists whom I've been reading lately.
- saiya-jin 5y agoNot so sure about that market part... its 160 million of mostly poor folks who are becoming massively more poor as we write here. That's not so lucrative market compared to ie Europe with 500+ million wealthier citizens. But yeah Chinese cheap stuff will not have much competition.
- jessaustin 5y agoChina can trade with Russia as much as it wants. Ukraine might sanction them, but no one else is going to cut off China.
- _ph_ 5y agoThe point in the previous comment was, that there is little China can get from a trade with Russia other than natural resources. Russia is quickly running out of foreign money. While the West cannot "cut off" China as too much manufacturing has moved there, supporting Russia in this already has an impact on the reception of Chinese brands in the West. Perhaps less so in the US, but so far Chinese brands are quite popular in the EU. This could change quickly. Also this encourages to reduce the dependencies on China.
- jessaustin 5y agoAs a populous nation whose economy is based primarily on manufacturing, natural resources is the main thing that China would want to obtain from any other nation, particularly one with whom it shares the sixth-longest international border.