China Has Become the Main External Pillar of russia’s Economy

The U.S.-China Economic and Security Review Commission (USCC) describes China as the main external pillar of russia’s economy. Since 2022, moscow’s dependence on Chinese markets, finance, and technology has risen sharply. At this, Beijing does not assume any alliance obligations and exploits this dependence for its own interests.

In 2024, trade between the two countries reached $244.8 billion. China became the largest buyer of russian oil and a key supplier of components for the military industrial complex. According to the USCC, in 2026, China accounted for about 90% of the technologies whose supply to the rf is restricted by sanctions. Since 2022, Chinese companies have sold $10.3 billion worth of goods on the China High-Priority List (CHPL) to russia, including semiconductors, electronics, machine tools, and drone components.

Chinese components are widely used in russian drones, while Chinese nitrocellulose is needed for the production of gunpowder and rocket fuel. Intermediaries, front companies, and transit through third countries are used to circumvent sanctions.

Financial dependence has also increased. The yuan’s share of the moscow foreign exchange market rose from 3% in 2022 to 99.8% following the USA’s sanctions against the moscow exchange. The number of russian participants in the Chinese payment system CIPS rose from 76 in February 2022 to 210 in June 2026. More than 90% of bilateral trade in 2024 was conducted in rubles or yuan.

Military cooperation is also expanding. China supplies engines for russian attack drones, satellite data, and other technologies. In return, Beijing gains russian combat experience and access to military developments.

The gap in technological capabilities is also widening. In 2023, China spent about 2.6% of its GDP on research and development, while russia spent 0.94%. moscow is becoming increasingly dependent on Chinese manufacturers and technologies.

The USCC views this partnership as pragmatic but not an alliance. Disagreements persist between the countries in the areas of intelligence, nuclear policy, relations with north korea, and the struggle for regional influence. Dissatisfaction with the role of the junior partner is also growing in moscow.

For moscow, the main problem is the transformation of economic dependence into political one. Beijing can expand or restrict russia’s access to technology, money, and markets depending on its own relations with the USA and the EU.