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Chinese leader Xi Jinping (left) and Russian President Vladimir Putin in Shanghai following a gas deal signed in 2014. “If they treat Russia as an equal -- even if they don't think they are -- then this will pay dividends for China, and that’s been a growing part of how Xi has approached this entire relationship,” one analyst says.
Chinese leader Xi Jinping (left) and Russian President Vladimir Putin in Shanghai following a gas deal signed in 2014. “If they treat Russia as an equal -- even if they don't think they are -- then this will pay dividends for China, and that’s been a growing part of how Xi has approached this entire relationship,” one analyst says.

As Russian tanks rolled into neighboring Georgia under the cover of darkness in August 2008, Beijing’s initial reaction was one of quiet irritation.

Then-Chinese leader Hu Jintao was reportedly frustrated and embarrassed that Moscow had chosen the opening day of the Summer Olympics in Beijing to launch its invasion, with China even moving to block Russian diplomatic attempts to legitimize the war in various multilateral organizations and neighboring regions, such as Central Asia.

Fast forward to February 2022 and a very different picture of the evolving China-Russia relationship -- defined by a growing ideological affinity to rewrite the global order and a shared opposition to the United States on the global stage -- begins to come into focus.

With the drumbeats of a Russian invasion growing louder once again earlier this year as another Chinese-hosted Olympics approached, President Vladimir Putin traveled to Beijing to meet with his counterpart, Xi Jinping, where the two leaders marked a new era in their countries’ ties by announcing the start of a “no-limits” strategic partnership.

In a sign of how much China and Russia’s relationship had transformed in the 14 years between the events, the two leaders signed a 5,300-word joint statement on February 4 before the Olympics' opening ceremony that offered a blueprint for further political, economic, and military cooperation while showcasing a common front against the West.

But that newly declared unlimited partnership would soon be put to the test.

On February 24, Russian tanks once again rolled into a former Soviet neighbor, this time sparking the largest war in Europe since World War II. Unlike Georgia, however, Putin’s invasion of Ukraine triggered a swift economic and political response from the West, and Ukrainian forces -- equipped with a steady stream of Western arms -- have managed to push back Russian troops and derail the Kremlin’s war goals in a series of embarrassing setbacks.

Chinese soldiers take part in a ceremony opening the Vostok 2022 military exercises at a firing ground in Russia's Far Eastern Primorsky region on August 31.
Chinese soldiers take part in a ceremony opening the Vostok 2022 military exercises at a firing ground in Russia's Far Eastern Primorsky region on August 31.

Since then, Beijing has walked an awkward line with Moscow: speaking out against Western sanctions against Russia and often boosting the Kremlin’s narrative on the war, while at the same time distancing itself diplomatically from Putin and sometimes offering veiled criticism of the invasion.

After a year that has shattered many expectations and dissolved several myths about China and Russia’s relationship, what does 2023 have in store?

“The military ineptness of Russia has somewhat diminished [its standing], but China remains committed to Russia as a strategic partner,” Steve Tsang, director of SOAS University London's China Institute, told RFE/RL. “Russia may have proved itself less valuable, but [Beijing] continues to see the United States as a strategic competitor and will want to have Russia on its side.”

A Strategic Prize

Despite the many problems that Russia’s invasion of Ukraine has unleashed at home and abroad, Chinese strategists still view Moscow’s growing attachment to China as an advantage as Beijing deepens its global competition with the United States.

“The relationship is still understood as a real asset and prize for Xi, even if there will be a weaker Russia emerging from this war,” Andew Small, a senior fellow at the German Marshall Fund and the author of No Limits: The Inside Story Of China's War With The West, told RFE/RL.

A woman in Hong Kong in front of TV screens showing the news that Russian troops invaded Ukraine on February 24.
A woman in Hong Kong in front of TV screens showing the news that Russian troops invaded Ukraine on February 24.

Analysts contend that the war has left Beijing uneasy and, at times, Chinese officials have signaled their displeasure, such as backing a statement in November at the G20 summit in Indonesia taking aim at Moscow for the global political and economic fallout caused by its invasion.

But the war has also left Russia more dependent on China -- both politically and economically -- than ever before, and Putin’s willingness to openly challenge the United States still holds great appeal for Beijing as it continues to rise on the global stage.

“A weaker Russia is still a better partner than any other option China has, especially in terms of its military, economic, and political value,” Small said. “The strategic landscape is still the same for Xi. Beijing expects to be embarking on a [period of] struggle, and it isn't willing to bend.”

Brokering this partnership has been a long-term goal for Chinese policymakers, said Small. While both Beijing and Moscow often found overlapping interests at international bodies like the United Nations, their relationship was still defined by deep distrust, especially on the Russian side.

For many years, Moscow had essentially closed the Russian market to Chinese investment.

The Kremlin remained cautious over gas-pipeline deals that could augment Chinese energy security and held back when it came to arms sales for advanced weapons like the S-400 missile-defense system and Su-35 fighter jets, which Russian officials thought would allow Chinese arms companies to reverse engineer the products.

But much of that changed following Russia’s forceful annexation of Ukraine’s Crimean Peninsula in 2014 and the outbreak of fighting in the eastern part of the country. Moscow found itself grappling with Western sanctions, including from the European Union -- its largest energy customer -- and, in May of that year, Putin departed for Shanghai, where he sought to kickstart Moscow’s pivot to the East with a massive $400 billion gas deal in the form of the long-stalled Power of Siberia pipeline bringing energy to China.

An official ceremony to launch Russian natural-gas supplies to China via the Power of Siberia pipeline in the Black Sea resort of Sochi on December 2, 2019.
An official ceremony to launch Russian natural-gas supplies to China via the Power of Siberia pipeline in the Black Sea resort of Sochi on December 2, 2019.

Further restrictions were lifted in the months that followed as Russia sold advanced fighter aircraft and missile systems to the Chinese, at the same time changing its tune about Beijing’s Belt And Road Initiative (BRI) investment project, which had previously been seen as a way to encroach on Russian influence in areas like Central Asia that the Kremlin views as its sphere of influence.

“The interesting part of this [Ukraine] war and its consequences for China is whether these risks that it has seen Russia take are worth it,” Small said, in reference to Chinese ambitions to claim self-governing Taiwan, which Beijing views as a rogue province. “It clearly showed them how damaging this can be if poorly calculated.”

Watching 2023

Looking ahead into a new year, a central question remains about how China will navigate the evolving nature of its ties with Russia following its gambit in Ukraine.

While experts say it remains clear that Beijing has no intentions of dropping Moscow as a partner, there are clearly limits to the extent of any political or economic lifeline that China would offer Russia.

“China seems likely to continue offering strong rhetorical support for Russia, but practical military and economic support is less likely,” Charles Dunst, a fellow at the Center for Strategic and International Studies and author of Defeating The Dictators, told RFE/RL. “The United States has repeatedly warned China that military and economic support for Russia would prompt U.S. sanctions -- a situation that China, with its economy in a somewhat precarious position, wants to avoid.”

Chinese President Xi Jinping and Russian President Vladimir Putin meeting in Beijing on February 4, where they declared a "no-limits" partnership.
Chinese President Xi Jinping and Russian President Vladimir Putin meeting in Beijing on February 4, where they declared a "no-limits" partnership.

With that in mind, China looks set to continue buying discounted Russian energy and aiming to make transactions in rubles or Chinese renminbi as part of a broader effort to insulate itself from sanctions blowback.

Likewise, many Russian regions have set new trade records with neighboring Chinese provinces -- a dependence that looks set to grow in the future.

China seems unlikely to become a major financial backer of Russia in the near future, says Agathe Demarais, global forecasting director for Economist Intelligence and the author of Backfire: How Sanctions Reshape The World Against U.S. Interests.

“Russia will try to do anything it can to boost energy exports to China,” she told RFE/RL. “That shouldn’t be hard for oil, but the problem will be gas, which is the lifeline of the Russian regime. Nearly all Russian pipelines are geared to Europe, and building new ones is costly, requires advanced technology, and takes time and money.”

Uncertainty also exists over any form of Chinese moves to help Russia avoid the biting U.S. sanctions on its economy.

Beijing has in the past helped other partners like Iran navigate multilateral sanctions, where it aimed to soften the financial blow and buy cheap oil. But Demarais said China also inflamed its ties with Tehran during this period by pushing too hard on Iran during negotiations and taking advantage of the country's economic desperation.

With Russia, Beijing will be looking to learn from that experience and find a balance between pursuing its own energy and financial interests while also keeping Russia firmly in its corner.

“China knows that it will be able to get concessions from a desperate and cash-strapped Russia,” Demarais said. “Also, Chinese firms aren't too excited about stepping up business with Russia as they fear that secondary sanctions could be applied, and Chinese firms don't want to take risks. This means that the relationship will be very unbalanced, and China has the upper hand.”

With an eye on 2023, the German Marshall Fund’s Small said the key task for Chinese strategists is keeping Moscow close while still keeping ties with the West intact, which Beijing appears to be successful in doing following a new wave of outreach with European leaders like French President Emmanuel Macron and European Council President Charles Michel.

“They know that Russia wants respect, and if they give that, then this is a cheap trade for Beijing,” Small added. “If they treat Russia as an equal -- even if they don't think they are -- then this will pay dividends for China, and that’s been a growing part of how Xi has approached this entire relationship.” ​

Lab technicians work at a BGI Group facility in Hong Kong.
Lab technicians work at a BGI Group facility in Hong Kong.

China's BGI Group -- the world's largest genetic-research company -- is grappling with U.S. sanctions and facing investigations in Europe over its alleged links to the Chinese military. But the corporation has received a warm welcome in Serbia.

Belgrade recently announced plans to deepen its cooperation with BGI, formerly known as the Beijing Genomics Institute. Serbian Prime Minister Ana Brnabic and BGI representatives announced in November that the Chinese company will play a central role in a new project in the Serbian capital that is scheduled to open in 2023.

A $200 million project, the BIO4 campus is meant to be a hub for scientific research and investment in the Balkan country and will focus primarily on biomedicine and biotechnology.

The project will build on other areas of cooperation between Serbia and the Chinese gene giant, including the Center for Genome Sequencing and Bioinformatics that opened in December 2021. The center aims to bring together researchers from BGI with their Serbian counterparts under the umbrella of Serbia's state-run Institute of Molecular Genetics and Genetic Engineering.

BGI's expanding partnership with Serbia comes despite the company dealing with investigations across the European Union due to its alleged misuse of genetic data and sanctions in the United States for its suspected links to the Chinese military.

Many of the charges stem from the findings of a 2021 report by Reuters that showed BGI was using prenatal tests -- carried out during pregnancy to find out if the fetus has a genetic disorder -- that were developed in collaboration with the Chinese military to collect genetic data for sweeping research on the traits of populations.

The prenatal tests were part of the production line at the center associated with BGI in Belgrade. The revelations have so far led to investigations in three EU countries -- Estonia, Slovenia, and Germany -- over how the BGI tests were sold and used.

BGI Under Scrutiny In Europe

BGI has denied that it operates in connection with the Chinese military. During their reporting, Reuters found no evidence that the company violated privacy agreements or data regulations, saying that it obtains signed consent and destroys overseas samples and data after five years.

The BGI Group's building in Beijing
The BGI Group's building in Beijing

A review of more than 100 public documents by Reuters, however, did show that BGI had worked with Chinese military hospitals to study the genomes of fetuses since 2010 and had published more than a dozen joint studies with military researchers to trial and improve its prenatal tests.

Reuters also found that the test's privacy policy says data collected can be shared when it is "directly relevant to national security or national defense security" in China.

BGI has said publicly that it has "never been asked to provide -- nor provided -- data from its [prenatal] tests to Chinese authorities for national security or national defense purposes."

The concerns over the company's collaboration with the Chinese military and the collecting of information from millions of people around the world are what prompted the ongoing investigations in the EU.

The Slovenian Commissioner for Information, which oversees the protection of personal data, told RFE/RL that it was unable to provide details on an active case. But it did confirm that the Slovenian company GenePlanet, which cooperates with BGI and uses their prenatal tests, was being investigated over "suspicion of data processing without an appropriate legal basis and provision of inadequate (insufficient and misleading) information to individuals about the processing of their genetic data."

In Estonia, a local company that sent its tests to a laboratory using BGI technology was investigated in 2021 following the Reuters findings.

The Estonian Data Protection Inspectorate told RFE/RL that the local company cooperated fully with their investigation and that they found data compiled from the tests is saved according to proper procedure. "The company has corrected other deficiencies in its privacy policy and confirmed that test-related data is stored in the European Economic Area. As a result, we have suspended monitoring of that company," the Inspectorate said.

The Commissioner for Data Protection in Hesse, the German state where the prenatal tests were manufactured for Germany, did not respond to RFE/RL's request for comment.

The BGI case, however, was outlined by the German Federal Data Protection Authority in its annual report for 2021. The report said the Commissioner for Data Protection in Hesse launched an investigation into data-protection procedures and that the German company that manufactures the tests agreed to not send any samples to a BGI laboratory in Hong Kong until the investigation is closed.

A Focus On The Future

Beyond issues of privacy, genetic data and critical technologies such as artificial intelligence, quantum computing, and semiconductors are part of a complicated new frontier that could shape the economies of the future.

Beijing believes that dominating these fields will give it an economic edge in the future. U.S. companies are also investing heavily in the technologies.

Serbian Prime Minister Ana Brnabic (center) and Chinese Ambassador Chen Bo at the opening of the Genome Sequencing Center in Belgrade in 2021.
Serbian Prime Minister Ana Brnabic (center) and Chinese Ambassador Chen Bo at the opening of the Genome Sequencing Center in Belgrade in 2021.

U.S. officials have taken aim in recent years at Chinese companies, accusing them of collecting medical and genetic data around the globe as part of an effort to develop the world's largest bio-database.

The Pentagon also blacklisted BGI and 12 other Chinese companies in October over their suspected links to the Chinese military. "The department is determined to highlight and counter the People's Republic of China's military-civil fusion strategy," it said in a statement.

The country that builds the best database of information will have an edge in stopping pandemics and developing cures for diseases, according to experts, as well as an advantage in the biotechnologies of the future that could also have military applications.

Beijing has also been accused of misusing genetic data. A 2019 report by The New York Times documented how Chinese authorities used genetic tests to track Uyghurs, the predominantly Muslim minority group that has been repressed by Beijing and faced internment camps, forced sterilization, and other human rights violations.

Those concerns have continued to follow BGI as it deepens its footprint in Serbia.

The Chinese company told RFE/RL that it did not have access to the data processed at the Genome Sequencing Center in Belgrade and that there was no agreement between it and the center for sharing genetic data obtained from testing.

Serbian authorities also told RFE/RL that all data gathered at the center, including results from prenatal screenings, was only stored at a government data center in Kragujevac, a city about 100 kilometers south of Belgrade.

Written by Reid Standish based on reporting by Mila Durdevic of RFE/RL's Balkan Service

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About The Newsletter

In recent years, it has become impossible to tell the biggest stories shaping Eurasia without considering China’s resurgent influence in local business, politics, security, and culture.

Subscribe to this weekly dispatch in which correspondent Reid Standish builds on the local reporting from RFE/RL’s journalists across Eurasia to give you unique insights into Beijing’s ambitions and challenges.

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