China, Russia Ties Could Help Stabilize Global Energy Markets
China and Russia signed deals in various sectors on Tuesday and one of the key industries that took the attention of analysts in line with the agreement to increase collaboration is energy. Industry experts said the alliance between two of the world's most powerful economies could spur change in global energy markets.
According to a report on the official website of S&P Global, Russia is embroiled in disputes with the U.S. government regarding American firms operating a business in partnership with Russian firms.
Through an enhanced energy partnership with China, industry analysts believe the alliance could introduce a non-protectionist era into the global market that could further spur growth in various markets across the world.
"Strengthening of energy cooperation is key to energy security and an open world economy. Oil and gas have always been the cornerstone of the development of bilateral relations," CNPC chairman, Wang Yilin, said during the St. Petersburg International Economic Forum held in Moscow on Thursday.
Rosneft CEO Igor Sechin, who is among Russian President Vladimir Putin's closest allies, echoed Wang's comments about the energy cooperation between Beijing and the Kremlin. Sechin forecasted that the joint venture could turn into "a significant force" that will promote stability in the energy sector as a whole.
To quench concerns about potential protectionism coming from either side of the joint project, Sechin said the two sides should agree on a "balanced energy policy" that ensures the interests of all parties involved.
The South China Morning Post reported that deals worth $20 billion were signed between the two nations on Thursday with technology and energy among the highlights of the joint agreements.
The Chinese commerce ministry confirmed on Thursday that China and Russia were targeting increased trade to around $200 billion in e-commerce, auto segments, and nuclear power.
Deals were also signed around natural gas sectors, technological innovations, and the latest big thing that put Chinese tech giant Huawei in intense scrutiny from the White House, 5G tech and communications.
Multiple outlets confirmed that Huawei secured an agreement with Russia's MTS for the former to help in building the country's 5G networks. According to The Guardian, MTS said in a statement on Wednesday that works on the project will kick off between this year and the next.
The U.S. has been trying to convince its allies to shun Huawei's 5G offers, with a number of western nations reviewing the Chinese tech behemoth's equipment for a potential ban. However, analysts noted that Huawei found in Russia what the United States and other countries refused to give: a solid business alliance.