Will China offer Russia financial help?

IF YOU BELIEVEUN China’s diplomats, relations with Russia are “rock solid” and the friendship between Xi Jinping and Vladimir Putin has “no limits”. Western sanctions are about to put those warm words to the test. Russia needs an economic and financial lifeline. It would like to use China as a conduit through which to continue trading with the rest of the world. China, however, must strike a delicate balance between helping Mr Putin stand up to their joint rival, America, and retaining its own access to the global financial system. No doubt to Mr Putin’s regret, its financial aid to Russia is likely to be qualified at best.Although China abstained in votes condemning Russia for invading Ukraine, its rhetorical support has been more fulsome. On March 7th, as civilian casualties mounted, Wang Yi, the foreign minister, called Russia his country’s “most important strategic partner”. It is just a month since Mr Xi and Mr Putin heralded a new era for their countries. As well as preserving relations, China probably wants to undermine the legitimacy of sanctions as a tool of Western policy, given they have been used against it over Hong Kong and Xinjiang. Chinese firms may spot an opening in Russia as Western ones, such as McDonald’s and Shell, close their doors. Bloomberg News says that some are eyeing cheap energy assets.