Joint move: Russia and China discussed mechanisms to increase trade turnover

The growth of trade turnover and mutual investments, stability in energy supplies — such examples of successful cooperation between Russia and China were cited by Mikhail Mishustin at the meeting of the heads of government of the two countries. The traditional 31st intergovernmental negotiations took place on October 21 in St. Petersburg. The Russian Prime Minister stated that bilateral relations "are at the highest level in history." At the same time, he suggested more actively modernizing border checkpoints, introducing digital technologies into rail transportation, forming new transport corridors and expanding the geography of air traffic, which will affect trade. And the updated agreement on the promotion and protection of investments should contribute to the growth of investments.

Who arrived in St. Petersburg

Since the morning of October 21, St. Petersburg has been on high alert - and the locals have felt it to the fullest.

"We have a lot of police in the city today," the taxi driver says in surprise.

"The Americans are coming to see you, and there's also a Chinese delegation," I reply.

The driver immediately guesses that we are talking about the special envoy of the White House, Steven Witkoff, and the son-in-law of the American leader, Jared Kushner. Their names are well—known in Russia - this is not the first time that American negotiators have come to resolve the Ukrainian crisis.

The recognition of Chinese officials is becoming more difficult, although their visit is much more ambitious. Premier of the State Council of the People's Republic of China Li Qiang arrived in St. Petersburg with a high-ranking delegation to hold the 31st regular meeting of heads of government with Mikhail Mishustin. Both Prime Ministers flew here from Dushanbe, where they took part in a meeting of the SCO Council of Heads of Government. At the same time, on the eve of the talks, they visited Tsarskoye Selo together, where, in particular, they inspected the restored Chinese Hall.

The Russian-Chinese dialogue took place in the Presidential Library. Inside, historical chronicles were broadcast on screens — you could learn about the Russian ecclesiastical mission in the 19th century and Russian travelers who discovered China in that era. However, archival information is just a pleasant historical background. What is happening within these walls right now is much more important: Moscow and Beijing need to build reliable relations in the current realities and determine a strategy for cooperation in the future.

This meeting is of particular importance, at least for the reason that an agreement on good-neighborliness, friendship and cooperation between Russia and China was signed 25 years ago. This is a fundamental document that defines the nature of bilateral relations. In 2026, it was extended for another five years.

Mikhail Mishustin stressed that Russian-Chinese relations "are at the highest level in history and are a model of interstate relations." The current turbulence in the international arena does not hinder the development of dialogue, but rather even stimulates it. According to Li Qiang, despite the growing instability, bilateral relations "are always dynamically and steadily advancing." At the same time, the parties regularly emphasize that cooperation between the Russian Federation and China is not directed against third countries.

As Alexander Yershov, a researcher at the Center for the Study of the Modern History of China and its Relations with Russia at the ICSA RAS, noted, building a multipolar world remains an important common vector of policy between the two countries, which is largely perceived as an alternative to the Western system.

However, the situation in the world or in specific hot spots on October 21 was not in the foreground — direct contacts between Moscow and Beijing were the main ones at this meeting. To this end, many ministers and deputy prime ministers, as well as heads of structures such as Rosatom and Roscosmos, were present at the talks from both sides.

How will cooperation between Russia and China develop?

The trade turnover between the two countries is growing and the volume of bilateral investments is increasing. Russia expects to increase investments, including through the implementation of the updated bilateral agreement on the promotion and protection of investments. It was signed last year and creates the most favorable conditions for doing business and investing, Mikhail Mishustin said.

Moscow proposes to modernize checkpoints more actively, introduce digital technologies into railway transportation, and create new transport corridors. At the same time, it is worth noting that Beijing has been using the Northern Sea Route more and more actively lately.

— And of course, to further expand the geography for air transport. All this will serve to increase cargo turnover and trade in general, which will benefit national economies," Mikhail Mishustin added.

Russia holds the lead in exporting oil and natural gas to China. Earlier it was reported that Moscow will supply 39 billion cubic meters of gas to the neighboring country via the Power of Siberia this year. In addition, the project of the Baikal Power pipeline (renamed the Power of Siberia-2 project) is being worked out. It can become one of the largest gas arteries in Eurasia, the Russian prime minister added.

Deputy Prime Minister Alexander Novak, whom the correspondents did not want to let go after the negotiations, clarified that Russian and Chinese companies could reach commercial agreements on the Baikal Power gas pipeline by the end of 2026.

Yang Cheng, a professor at Shanghai University of International Studies, admits that bilateral relations are not without problems. As an example, media reports about the refusal of Chinese banks to accept payments from Russia due to Western sanctions can be noted. However, according to the expert, the emerging practical issues are only "the costs of developing a mature relationship, not signs of a crisis." Yang Cheng believes that it is critically important for Russia and China to move away from the raw materials model of trade towards innovation.

One of the main directions of such high-tech cooperation is cooperation in the field of peaceful atom. Rosatom CEO Alexey Likhachev, who most actively communicated with the press on the sidelines of the meeting, confirmed plans to commission new power units of the Tianwan and Xudapu nuclear power plants in the near future. The Russian state corporation is ready to continue expanding cooperation with Beijing, including the construction of new blocks.

Following the meeting, the heads of government signed a joint communique. Russian-Chinese cooperation is multilateral in nature: in addition to trade, politics and the military, it covers humanitarian areas such as tourism, sports and education. The rapprochement between Moscow and Beijing noticeably intensified after 2022, when the West turned away from the Russian Federation.

Meanwhile, this alliance has traditionally caused serious concern in Washington. Prominent American strategists Henry Kissinger and Zbigniew Brzezinski warned about the danger of uniting the two powers back in the 20th century, and in 2025, Donald Trump actively raised this topic. That is why the West will certainly continue to make attempts to complicate the Russian-Chinese strategic partnership. However, it seems that neither Washington nor Brussels has serious levers of influence on this process. This is a big plus, which gives Moscow and Beijing the opportunity to develop a bilateral dialogue without regard for third countries.