China, Russia boosting ties

Huawei to build Russia’s 5G network . . .

Chinese President Xi Jinping wraps up a visit to Russia today that clearly demonstrates the strengthening of the Beijing-Moscow axis. During the state visit, Russia’s largest mobile operator, MTS, signed a deal with Huawei for the development of its 5G network in Russia. Despite the U.S. blocking American companies from working with Huawei and pressuring allies to follow suit, Huawei continues to expand its network in many parts of the world.

An axis against the U.S. . . .

China and Russia have been showing a united front for years, especially around LNG development in the Arctic. But their interests now seem to align more than ever; both are adamant that they are not satisfied with the current world order and U.S. global leadership. In addition to having increased their trade relations, China and Russia now support each other’s positions on a wide variety of global issues – including on Iran, Syria, and Venezuela – and have increased their collaboration through numerous multilateral fora.

Canada in a divided world . . .

Increased China-Russia camaraderie will not only further stress the current rules-based order and help China in its battle with the U.S., but it will also have implications for Canada. China and Russia have substantially increased their trade relations and Russia is set to increase its exports of pork and soybeans to China, two products Canada exports to China that have been central to that country's recent ‘commodity diplomacy’ campaign targeting Canada. In addition, China is increasingly turning to Russia for LNG, which could significantly impact Canadian energy exports. As Canada continues to navigate its complicated relations with both the U.S. and China, the increasing ties between China and Russia should be watched carefully.

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