Russian President Vladimir Putin announced on Friday that he is set to have another meeting with his Chinese counterpart, President Xi Jinping, marking their second rendezvous this year. This follows President Xi’s visit to Moscow in March, a highly publicized event that underscored the strengthening ties between these two major global powers. As we anticipate this meeting, it is crucial to delve into the potential political and economic implications on a global scale. The impending Putin-Xi meeting, second of its kind this year, underscores a deepening political alliance between Russia and China, two countries that are often at odds with the West. This meeting is likely to be viewed with concern by Western nations, particularly the United States and its allies, who have had strained relations with both Russia and China on a myriad of issues, ranging from human rights to cybersecurity. The increasing closeness between Russia and China serves to balance the geopolitical scales. Both nations have expressed dissatisfaction with what they perceive as Western hegemony, and by strengthening their alliance, they are better positioned to resist pressure from the West. This could potentially lead to a more multi-polar world, where power is not solely concentrated in the hands of Western nations.

In addition, the Putin-Xi meeting may result in more coordinated stances in international forums such as the United Nations. A united front from Russia and China could shift the balance of power in these bodies, potentially impacting global policies and decisions. Economically, the Putin-Xi meeting is expected to further bolster trade and investment ties between Russia and China. Both economies have complementary aspects: Russia, rich in natural resources like oil and gas, and China, with its vast manufacturing sector and growing consumer market. Enhanced cooperation could lead to more Russian resources flowing to China, and more Chinese goods making their way to Russia. Additionally, as both countries face economic sanctions from the West, they are likely to explore ways to mitigate these impacts. They may seek to increase the use of their own currencies in bilateral trade to bypass the U.S. dollar, which is currently dominant in international transactions. This could potentially challenge the status of the dollar as the world’s reserve currency. Moreover, the two countries could decide to intensify their collaboration in technology and infrastructure development. China’s Belt and Road Initiative, which seeks to build trade routes across Eurasia, could see increased Russian participation, while Russia could benefit from China’s technological advancements, such as those in 5G and artificial intelligence. The upcoming Putin-Xi meeting is more than just a bilateral summit between Russia and China. It carries substantial political and economic implications that could reshape the global landscape. The reinforcement of the Sino-Russian alliance could challenge the West’s political authority and economic dominance, leading towards a more balanced global power distribution. However, with this shift comes uncertainty. As these two powers grow closer, the world will be watching closely to see how their alliance develops and what it means for the future of international relations and the global economy.

By Paul Bumman