London Daily

Focus on the big picture.
Thursday, Mar 12, 2026

China has little to gain but much to lose as Russia’s ally

China has little to gain but much to lose as Russia’s ally

The uneasy friendship and ties that bind China and Russia counter long-standing issues of mistrust over the years

In just a few days, Russia’s invasion of Ukraine has upended decades of international relations thinking and practices. Nothing will be the same as before. Even the 5,000-word statement on “international relations in a new era” issued by China and Russia just a month ago in Beijing – to make the world safe for autocracy – has been overtaken by events. In this ugly Russian quagmire, China’s role and behaviour merit close attention, not least as we wonder whether Ukraine today may be Taiwan tomorrow.

China and Russia have been getting closer for some time. The binds are visible in bilateral trade, which has more than doubled since 2015 to almost $150bn. China is Russia’s biggest trade partner. While Russia is almost a rounding error in China’s global exports, the two countries collaborate in military exercises, regional security arrangements and technology trade. These binds go some way to counter other differences and long-standing sources of mistrust, for example over Russian far east and central Asia. Yet, the biggest bind of all is geopolitics.

Headed by control-obsessed dictators pledged to remain in power and protect their elites, they have both been gifted political opportunities created by, for example, the long tail of the 2008 “western” financial crisis, Brexit and European political weakness, Donald Trump, and Covid management issues in many democracies. They are joined at the hip in their pursuit of an anti-US and anti-western agenda in which they want to reshape the world order, including by force.

Putin’s awkward and brutal invasion of Ukraine doesn’t change any of this but it has changed the Sino-Russian relationship consummated at the Olympics on 4 February, and caused China consternation. Considerable speculation focuses on what Xi Jinping knew. It is hard to believe Xi was not forewarned about something, especially as the US tried to brief him with intelligence only to be rebuffed. We also know Russian troops were subsequently moved from the far east to Ukraine, and China is thought to have bought back previously released oil into its Strategic Petroleum Reserve.

Whatever the reality, China is deemed to have been complicit, at least by supporting Russia and backing it since, leaving it uncomfortably on a spiky fence.


Xi won’t back away from Putin because to do so would lead to much embarrassment and humiliation at home – a non-starter, especially in this key year ending with the 20th Party Congress. Yet, standing by Putin, and supporting overtly the weak Russian economy associates China firmly with a pariah state and erodes such trust and credibility in China’s statecraft. China’s list of friends globally isn’t that big or impressive anyway.

With strong leverage over Russia now, China can help its beleaguered neighbour, which, with its main banks excluded from the global financial system, its foreign exchange reserves frozen, and firms and persons subject to sanctions and asset freezes, has become a vassal state of China. It can buy much more energy and resources, and subject to ubiquitous sanctions laws, make loans, provide funds via currency swap agreements, trade in yuan, and supply semiconductors and other technology goods.

Yet, China will have to be careful to calibrate an image which isn’t overly accommodating, and reminds the world both that it can be an agent for important public goods, such as peace-broking in Ukraine, and that it wants the global system to remain relatively open.

Remember that, unlike Russia, China’s ambitions depend on a relatively open world economy in trade and technology, and on global and regional institutions which it would like to re-shape to suit its own interests. This is all at risk now if democracy-supporting nations choose to push a Russia-supporting China further away – or if China doubles down to insulate itself. China was certainly shocked how the EU, in particular, and the US came together purposefully and forcefully to freeze Russia out of the system. China’s continuing dependency on key western technologies and markets remains, despite acts of decoupling and self-reliance. It would certainly not want to risk being in the cross-hairs of a Russia-type financial war over, for example, Taiwan.

Beijing regards Taiwan as an inalienable part of China, and so its recent proclamation of support for the territorial integrity of Ukraine and others should not be taken at face value. China has never ruled out taking Taiwan by force, but Russia’s invasion of Ukraine, if anything, makes comparable Chinese action over Taiwan less, rather than more, likely.

From a rational standpoint at least, China will surely note that in war, best laid plans do go awry, resistance by people desperate for their country is a deserving cliche, and the US Pacific fleet and other Quad forces are close. It will be strongly aware, moreover, that “western” and other global economic and financial pushback is anything but a spent force and potentially highly effective. If Russia, as basically a commodity producer, is so sensitive to financial war, then China, as an economic colossus with strong dependencies, is at even bigger risk. Note also that Japan has revived a debate about taking US nuclear weapons, and ended the policy of ambiguity over Taiwan’s political status.

China’s new Russia relationship remains but it has changed radically. It now has high leverage over Russia but, by close association, little to gain globally and much to lose. Xi has no good options, and difficult choices to make as he tries to walk the line between supporting Russia and rebuilding friendly relations with the west. We need to remain on guard against thinking China’s totalitarian leader will be different from what Russia’s always was.

Newsletter

Related Articles

0:00
0:00
Close
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×