More in common than guns, tanks

Russia’s biggest military exercises since the Cold War, involving China’s largest representation yet in overseas war games, coincided with a meeting between presidents Xi Jinping and Vladimir Putin on the sidelines of a regional economic forum on trade and bilateral co-operation.

At any time this would attract intense military and diplomatic analysis of the regional and global implications. During a US trade war with China and tensions between Moscow and the West, it is bound to be seen in terms of Russia and China building an alliance against the West. There is some truth in this, but the geopolitical reality is more complex. It is good for Beijing and Moscow to increase co-operation on the economic front, because they have complementary strengths and needs. In that regard greater co-operation leading to improved economic security can only be good for regional stability. The trade war between the US and China, and new US and European Union sanctions against Russia have pushed Beijing and Moscow closer together. This is reflected in the vow by Xi and Putin to boost bilateral ties and oppose the Donald Trump agenda of unilateralism and trade protectionism. Russia needs new markets, investment and credit, and access to new technology, and sees China as a primary source. China can help offset risks from the trade dispute with the US by expanding trade with Russia.