Beijing Remains Silent on Power of Siberia 2 Agreement
Despite Moscow’s claims, Beijing has not confirmed any agreement on the long-discussed Power of Siberia 2 gas pipeline. During Vladimir Putin’s September visit to China, Gazprom CEO Alexey Miller announced that a “legally binding memorandum” had been signed, pledging to raise gas exports to China to over 100 billion cubic meters annually. This statement led to a flurry of Kremlin-echoed remarks, characterizing the Miller announcement as a breakthrough in Russo-Chinese energy cooperation.
China, however, has remained silent about the agreement to date. Xi Jinping, for example, made no public reference to the pipeline, nor has China National Petroleum Company (CNPC) issued any statement, while the Chinese state media has completely avoided making any mention of the deal. To add insult to injury, there was no photo opportunity of Putin and Xi signing the Power of Siberia 2 agreement, which would have made front-page news around the world. It seems, however, that only the Financial Times reported that the agreement was finalized although the newspaper noted that no gas pricing agreement was announced, which has been a key holdup to any go-ahead with the project. Upon closer scrutiny, some Western energy analysts are noting that Moscow’s announcements are premature (see Paul Goble’s article below exploring this announcement), noting the communique from the talks merely spoke of “cross-border infrastructure.” Experts stress that without agreed pricing or timelines, the project remains aspirational.
Russo-Chinese Trade Plummets by Nearly 20 Percent
Russian-Chinese trade is experiencing a sharp downturn in 2025, marking the first sustained decline since Russia’s war against Ukraine began three years ago. In August, Chinese imports from Russia fell 17.8% year-on-year, while its exports to Russia dropped 16.4%, nearly double July’s decline. Over the first eight months of 2025, bilateral trade fell nearly 9% to $145 billion, with Russian exports down 8.8% and Chinese exports down 8.2%. Customs data show steep reductions in Chinese purchases of Russian oil (-11%), petroleum products (-28%), LNG (-13%), coal and timber (-10%). The Chinese slowdown has alarmed the Kremlin, with insiders criticizing Beijing for exploiting Moscow rather than acting as an ally. During President Putin’s September visit to China, efforts to secure major new deals yielded little: modest increases in gas and oil contracts represent only fractions of Russian output, while the much-touted Power of Siberia 2 pipeline remains unconfirmed by China.
Chinese Companies Ignore Vladivostok Economic Summit
In the wake of President Putin’s successful trip to China and high-level meetings with Chinese leader Xi Jinping, one would have expected that China would have reciprocated the ‘partnership with no limits’ relationship by sending dozens – or at least one - ranking Chinese company to participate in Russia’s premier Far Eastern economic investment conference - the Eastern Economic Forum (EEF). While the gathering of the EEF in Vladivostok – which opened on September 3 - is widely touted by the Kremlin as an “authoritative business platform” for Asia-Pacific cooperation and a cornerstone of Moscow’s pivot-to-Asia strategy, none of China’s top political and business leaders showed up.
Not a single senior representative from China’s Ministry of Commerce, Ministry of Finance, Foreign Ministry, or Central Bank attended. In fact, the highest-ranking delegate who participated in the EEF was Li Hongzhong, Vice Chairman of China’s National People’s Congress, who was accompanied by some of his deputies and aides. By contrast, past forums have featured Chinese President Xi Jinping, Japan’s Shinzo Abe, and India’s Narendra Modi. This year, only Mongolia and Laos sent prime ministers, while India’s representation dropped to a deputy ambassador. No executives from China’s major corporations appeared on the guest list; instead, discussions were led by local officials such as the mayor of Fuyuan, a small Chinese border city. The muted turnout in Vladivostok suggests Beijing is in no rush to elevate the partnership, leaving Moscow increasingly reliant on China for its economic future. https://www.saratoga-foundation.org/p/kitaizatsiya-china-in-russia-newsletter?publication_id=3073942&post_id=173383317&isFreemail=true&r=o786d&triedRedirect=true
