Chinas Exports to Russia Plunge Amid Growing Trade Tensions and Sanctions

China’s exports to Russia experienced a decline of 16.4% in August compared to the same month last year, marking the largest drop since February, as reported by Reuters, citing statistics from China’s customs authority.

In August, exports amounted to $8.55 billion, representing a decrease of 5.8% from July. Similarly, Russian exports to China also saw a significant decline, falling 17.8% year-on-year to $9.35 billion, which is a 6.9% reduction from the previous month, according to the Russian state news agency TASS.

The total trade between the two countries for that month decreased to $17.9 billion. From January to August, China’s exports to Russia fell by 8.8% to $64.8 billion, while imports from Russia dropped by 8.2% to $79 billion, resulting in an overall trade decline of 9.4% to $143.8 billion over the eight-month period.

In late August, Russia’s Minister of Industry and Trade, Anton Alikhanov, stated that sanctions and market saturation were starting to temper the previously rapid growth in trade with China, following years of expansion since the onset of the full-scale invasion of Ukraine.

The reduction in Chinese exports last month also coincides with ongoing trade tensions between Beijing and Washington, which agreed in early August to extend a tariff moratorium for an additional 90 days.