In recent news, Russia and China have been working together on several trade agreements. They currently have a gas deal and an agricultural deal in the works, as well as credit agreements. Some people argue this could hurt the world’s economy, particularly the U.S. dollar. China and Russia are definitely becoming strong trade partners, and the world is going to see an impact, whether for good or bad.
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Chinese President Xi Jinping and Russian President Vladimir Putin met together at the beginning of May to set the motions in place for their trade pacts. Both countries have suffered a lot because of war and they share many of the same views about global problems and economic need. During their meeting, they signed a trade deal showing their cooperation and then announced that they are creating a free-trade zone between the two regions by setting up an agricultural investment fund. It will have an initial investment of $2 billion to support agricultural projects.
Another project that China and Russia are working on is a high-speed rail line that links Moscow to the Volga city of Kazan. China will finance the project and Russia will provide a credit line to China for other projects that promote free trade between the two regions.
The two presidents also signed an agreement to create a joint company between the two countries for Russia to acquire 100 jumbo jets in three years. Joint energy projects were also discussed, such as a pipeline project for Moscow to supply Beijing with gas. More cooperative trade agreements will likely follow.
Many people around the world find the cooperation between China and Russia baffling because of longtime contention and competition. However, these two super countries now realize the benefits they can provide to their citizens with trade cooperation. Many countries around the world do not support the trade deals.