Russia’s ripple effect and a Beijing bailout

China’s main concern is to protect the economy from a volatile period exacerbated by a new wave of Covid-19 cases

As Russia’s war in Ukraine continues, China’s role has been thrown into sharp relief.

Prior to the war, some commentators suggested that China would openly side with Russia or seek to act as a mediator – so far Beijing appears to have resisted doing either.

As Qin Gang, China’s ambassador to the United States, wrote in the Washington Post, Beijing has nothing to gain from this war, arguing “wielding the baton of sanctions at Chinese companies while seeking” Beijing’s “support and cooperation simply won’t work”.

Ambassador Qin also stressed that China had no prior knowledge of the conflict, rejected any attempts to profit from the crisis, and called on all sides to join peace negotiations.

Since Russia began the war in Ukraine, China has declared a de facto policy of neutrality. So far, Foreign Minister Wang Yi has been at pains to point out “China is not a party to the crisis, nor does it want sanctions to affect China.”

Greater alignment

The decision to stay neutral reflects Beijing’s precarious position in the conflict.

China had previously sought greater alignment with Russian President Vladimir Putin’s regime, based on a shared antipathy to US and western power, including via a joint statement struck earlier this year, which confirmed a partnership with “no limits” and “no forbidden areas of cooperation.”

Since the Ukraine invasion, Beijing has not explicitly condoned nor condemned Russia’s actions in Ukraine and has hesitated to refer to the crisis as a war.

Crucially, it also chose to abstain from both a United Nations Security Council resolution vote to end the Ukraine crisis and a UN General Assembly vote condemning Moscow’s actions. It has, however, recently described its relationship with Russia as “iron-clad.”

China fears risking trade with Europe and the EU. Photo: File

There have been fears that China could use the cover of this crisis to press its territorial claims on Taiwan.

But the pervasive international condemnation of the Ukraine invasion, and the mounting list of tactical failures of the Russian military, make the chances of action by Beijing against Taiwan less likely.

However, China has also been very careful not to make enemies in Europe. Ukraine and much of the former Soviet Union are key components in China’s ongoing Belt and Road Initiatives to build a massive international infrastructure of trade routes.

In his Washington Post article, Ambassador Qin explicitly talks about China’s history of trade with Ukraine, as well as with Russia. These moves clearly signal that Beijing is trying to steer a complex course between Russia and the West.

China is, of course, also mindful of the reputational damage that siding with Moscow would have.

Western sanctions

While many of the Chinese brands have not pulled out of Russia, unlike their western counterparts, the withdrawal of Chinese-owned TikTok was a sign that Beijing was also keeping an eye on its international reputation.

Western sanctions and rouble volatility mean Chinese firms are not keen to jump into the Russian market to replace departing western companies.

This is especially since any foreign assistance to Russia would be swiftly noticed by the international community. But the Chinese leadership has also been critical of US threats to retaliate should Beijing be seen as assisting Russia in evading international sanctions.

Rather than trying to get Beijing to act as a mediator in the conflict, western powers seem most concerned about China offering an economic or military lifeline to Russia.

Big buddies … Xi Jinping, left, and Vladimir Putin. Photo: Wikimedia Commons

This would undermine the myriad sanctions and punitive measures that the West has put in place against the Putin regime, effectively unplugging Russia from the global economy.

There have been worrying reports since denied by both governments, that Chinese-Russian logistical and military cooperation was under discussion. This concern was the subject of talks between US and Chinese officials in Rome on March 14.

President Xi Jinping is not in the best position to face international ire over Russia given China’s slowing economy and ongoing internal battles over rising cases of COVID.

There’s also a Chinese Communist Party Congress later this year when he is expected to be granted a third term in office but will face questions about the country’s economic reforms and post-pandemic recovery.

Global ostracism

While China’s economy is far more robust than Russia’s, the Xi government is still not able to risk the same global ostracism as Moscow. China’s ambitious expansion plans are based on a globalized economy.

It is in Chinese interests now to protect that economy from a volatile period exacerbated by the pandemic, supply chain questions, and a conflict that is already rattling numerous markets around the world.

Aglaya Snetkov is a lecturer in International Politics, School of Slavonic and East European Studies at UCL. Marc Lanteigne is an associate professor of Political Science at the University of Tromsø.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy of China Factor.