Source link : https://london-news.net/trumps-trade-wars-a-looming-threat-to-russian-industries-amid-chinese-competition/
U.S. President Donald Trump’s trade conflicts may impact the Russian economy in ways that extend beyond declining oil prices and reduced budget income.
Should negotiations between the U.S. and China break down, Beijing might opt to devalue the yuan, which would enhance the competitiveness of Chinese products and pose a risk to Russia’s local manufacturers, as indicated by an advisor to the head of Russia’s Central Bank.
Kirill Tremasov stated, “If tensions escalate excessively between the two nations, it could lead to a depreciation of the Chinese currency. This would boost the competitive edge of Chinese goods in global markets, including in Russia. China holds a crucial position in Russia’s imports, which could endanger local producers, particularly if there is an influx of inexpensive Chinese products into the market.”
Tremasov pointed out that such a devaluation would have minimal impact on Russian exports to China, which mainly consist of raw materials less affected by currency shifts. However, imports could face significant consequences, adding to the existing challenges of the Russian economy.
China has become Russia’s leading trading partner since Western sanctions and the withdrawal of Western firms followed the invasion of Ukraine.
According to analysts from the Gaidar Institute, last year, China represented over a third (34.1%) of Russia’s total foreign trade, contributing nearly 40% of imports.
Most Chinese imports are made up of machinery and…
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Author : rimmaruslan98@gmail.com
Publish date : 2025-05-02 13:11:00
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