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00:03 Report / Dagmar Zindel/Jörg Jelinnek

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A cooperation that apparently Russia needs more than China...

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On the ground, Russia’s industrial landscape is increasingly shaped by China.

Take Moscow’s revived “Moskvich” brand — once a symbol of Soviet-era car manufacturing. It's Russian on the surface, but much of what's inside is Chinese. The model has re-emerged with Chinese backing, part of a broader trend in which Beijing is steadily filling the vacuum left by Western carmakers who exited Russia after its full-scale invasion of Ukraine in 2022. 

Chinese companies are not only exporting vehicles and parts to Russia — they are also producing cars there - often inside factories formerly owned by the likes of Mercedes, Volkswagen and Nissan. One by one, the western industrial footprint is being replaced.

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Last year, Russia exported goods worth nearly $125 billion to China — the vast majority of it raw materials.

China, in turn, shipped around $103 billion worth of goods to Russia, including machinery, electronics, and computer equipment, according to Chinese customs data.

But after years of steady growth, bilateral trade has now slipped for the first time in 2025 — down 6.9%. The main reason: falling commodity prices, which have hit Russia’s export revenues.
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Even so, oil and gas remain the backbone of the Russian economy.

China is already the world’s largest buyer of Russian fossil fuels, and Moscow is now looking to expand those flows even further.
 
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Plans are underway for the proposed “Power of Siberia 2” pipeline, which will transport gas from Russia’s Yamal Peninsula in the Arctic to China via Mongolia.
 
For President Putin, pushing the project forward is a priority. Since Europe pivoted away from Russian energy exports, China has become a major buyer of its fossil fuels. But Beijing so far remains non-committal about the pipeline project. 
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02:10
Beijing on the day of the visit: For Putin, a great deal is at stake during his trip.
 
China holds the stronger hand in the relationship. It can buy energy elsewhere — while Russia is becoming ever more dependent on China to sustain its resource-driven economy.