Beijing Bleeds Russia’s War Machine Dry

A globe illuminated against the backdrop of the Chinese flag

Russia’s “no limits” alliance with China has backfired into a humiliating dependency, where Moscow begs for scraps while Beijing dictates terms and drains Russia’s wallet to fuel its Ukraine war machine.

Story Highlights

Western sanctions flipped Russia-China dynamics: Russia now exports raw commodities and imports high-tech goods, reversing 2000s power balance.
China charges Russia up to 90% markups on sanctioned dual-use items essential for the war effort.
Bilateral trade fell in early 2025, but China remains Russia’s lifeline for $1.9 billion in high-priority exports.
Xi-Putin summits lock in yuan trade and Chinese industrial dominance inside Russia.

From Partners to Master and Vassal

Western sanctions after Russia’s 2022 Ukraine invasion forced Moscow to pivot trade entirely to China. Russia redirects oil, gas, and coal exports from Europe to Beijing, while importing machinery, vehicles, electronics, and dual-use goods critical for its war economy. This created deep economic asymmetry. In the 2000s, Russia supplied advanced industrial products to a rising China. Today, Russia digs up resources to sell cheap while buying back manufactured high-value items it cannot produce.

China’s Price Gouging on War Essentials

China exploits this leverage ruthlessly. Firms charge massive markups on sanctioned goods, with Russia paying nearly 90% more than other buyers for certain items and 40% higher overall for restricted products. In H1 2025, China exported $1.9 billion in U.S.-defined high-priority dual-use items to Russia, down 7% but still dominant after other suppliers fled. Beijing publishes this data openly, defying the West while profiting handsomely from Moscow’s desperation.

Russia raised recycling fees on imported cars by 85% in late 2024, adding $7,000 per passenger vehicle. Chinese car exports dropped, but parts like car bodies surged fivefold, forcing local assembly on Chinese terms. This embeds Beijing’s industry deeper into Russia’s base, eroding Moscow’s sovereignty.

Energy Dependence Squeezes Russian Budget

H1 2025 customs data reveal bilateral trade contraction: Chinese imports from Russia down 9.6%, exports to Russia down 8.4%. China bought 11% less Russian crude by volume, with value plunging 24% amid U.S. maritime sanctions and low global prices. Russia’s oil share in China’s imports hit a two-year low of 17.5%. Oil and gas revenues will fall 24% below 2025 budget assumptions, threatening war funding and stability.

May 2025 Xi-Putin summit operationalized deeper ties with yuan payments, supply chain controls, and logistics pacts. September engagements advanced Power of Siberia 2 talks, but China stalls on pricing, leveraging Russia’s lost European markets. Barter trade rises to dodge Western finance, underscoring Moscow’s vulnerability.

Long-Term Strategic Costs for Putin

Russia’s 90% reliance on Chinese firms for key controlled imports in 2023, with 49% manufactured in China, risks irreversible tech dependence. Long-term energy deals and yuan reorientation entrench Russia as Beijing’s raw materials appendage. This erodes strategic autonomy, letting China shape Russian policy subtly. For Americans watching global threats, it proves aggressors like Putin pay dearly when cut off from free markets—vindicating strong U.S. sanctions that expose communist dependencies.