The Russia-China trade is tightening at an alarming rate, as claimed by a new analysis conducted by logistics platform Container xChange.
Based on the platform's findings, hundreds of thousands of Chinese shipping containers are now piling up in Russia.
Russia-China Trade Tightens as Chinese Goods Surge
Russia's President Vladimir Putin (R) shakes hands with his China's counterpart Xi Jinping during a signing ceremony following the Russian-Chinese talks on the sidelines of the Eastern Economic Forum in Vladivostok on September 11, 2018.
According to CNN Business, Russia currently has an extra 150,000 shipping containers. Because of this, importers are now struggling to return these overflowing Chinese goods back to Beijing.
This just shows that the trade movement from China to Russia is booming. But, the cargo exchange from Russia to China can't keep up with this improvement.
"There is significant cargo movement from China into Russia but very scarce movement back to China from Russia," explained Container xChange CEO Christian Roeloffs.
"Containers are piling up in Russia which means that the secondhand container prices are very low in Russia," he added.
Ever since the Russia-Ukraine war began, China started emerging as Kremlin's key economic partner. Although Beijing claimed that its stand in the invasion was neutral, it still supported Russia in the form of trade.
Meanwhile, Chinese officials also see Russia as a great strategic lifeline and counterweight against the West. China criticized the United States and its allies over the sanctions they imposed on Kremlin.
To help Russia, China has been ramping up the Russian government's energy purchases. This made Beijing a critical supplier of consumer goods for the Russian market.
Because the trade activities between the two super countries are further improving, the Russian government predicted that its trade with Beijing could reach around $200 billion before 2023 ends.
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Should Ukraine Be Worried?
Workers load a shipping crate in the Kazakhstan's Caspian seaport of Aktau, on August 14, 2018. - With the outlines of its six idle cranes obscured by thick fog and pouring rain, Kazakhstan's Caspian seaport Aktau seems an unlikely frontier on China's much-hyped new silk road.
CNBC reported that Chinese firms are not only assisting Russia's economy but also helping boost the Kremlin's military capabilities.
Some of the Chinese goods that Beijing provides are specifically for use in the ongoing Russian invasion of Ukraine.
Center for Strategic and International Studies Senior Advisor Mark Cancian claimed that the Chinese government is well aware of the increasing trade.
He said that there's no question that Beijing's officials are aware of the booming Russia-China trade flows.
Cancian further explained that these trade activities are large enough that they could not continue without the Chinese government's approval or assistance.
This is definitely bad news for Ukraine since China is also among the super countries with formidable warfare weapons.
The booming Russia-China trade will only allow the Kremlin to have enough supplies to continue its invasion of Ukraine.
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