The Beijing-Moscow axis: China's support for Russia's military industry - Report
- Gabriele Iuvinale
- 27 mag
- Tempo di lettura: 5 min
Key Points
China's Role in Sanctions Evasion: A German Foreign Ministry report reveals that China is responsible for 80% of the cases of sanctions evasion imposed on Russia.
Military Support: China provides essential materials, including machinery, chemicals, gunpowder, and electronic components for drones, to Russian military factories.
Critical Minerals Supply: Chinese companies supply Russia with gallium, germanium, and antimony, essential for producing drones and missiles.
Microelectronics and Drones: 80% of the microchips imported by Russia in 2024 came from China, used in tanks, missiles, and aircraft. China also supplied long-range attack drones.
Disguised Trade: The Russian Copper Company (RCC) and Chinese firms disguised copper wire trade as scrap metal to evade sanctions.
Cryptocurrency Transactions: Russia began using cryptocurrencies for trade with China to bypass sanctions.
Satellite and Technological Support: China provided satellite imagery and technological assistance to enhance Russia's military capabilities.
Energy Collaboration: Agreements between Gazprom and the China National Petroleum Corporation allowed payments for gas in rubles and renminbi, reducing reliance on the dollar.
Infrastructure Projects: The China Railway Construction Corporation (CRCC) was involved in building infrastructure in Russia, earning it the label of "international sponsor of war."
Sanctions on Chinese Entities: The U.S. and EU imposed sanctions on Chinese companies for supplying military materials and components to Russia.
Drone Production in China: Russian subsidiary IEMZ Kupol developed and produced long-range attack drones in China.
Economic and Financial Strategy: China established an interagency group to study Western sanctions on Russia and prepare for potential sanctions related to Taiwan.
Military Vehicles: Chinese companies supplied off-road vehicles and armored trucks to the Russian army.
Global Security Implications: The cooperation between China and Russia poses significant challenges for international security and requires coordinated action from Western democracies.
Introduction
In recent years, the cooperation between China and Russia has become increasingly significant in the global geopolitical landscape. A recent classified report from the German Foreign Ministry, made public by Süddeutsche Zeitung and the television networks NDR and WDR, revealed that China is responsible for 80% of the cases of sanctions evasion imposed on Russia. This highlights China's crucial role in supporting Russia's military industry, despite international sanctions imposed in response to the invasion of Ukraine.
The report emphasizes how China provides essential materials, technological components, and economic support to Russia, strengthening its military capabilities. Furthermore, the cooperation between the two countries extends to strategic sectors such as energy, technology, and infrastructure, making it even more challenging for the international community to counter these activities.
In this article, we will analyze in detail how China is supporting Russia's military industry, examining past cases and the implications of this collaboration for global security.
China and Support for Russia's Military Industry
A classified report from the German Foreign Ministry, revealed by Süddeutsche Zeitung and the television networks NDR and WDR, states that China is responsible for 80% of the cases of sanctions evasion imposed on Russia. This document summarizes the findings of the EU Foreign Affairs Council meeting held on May 20 in Brussels, where the effectiveness of sanctions against Russia and the possibilities of extending them were discussed.
Military Supplies and Industrial Cooperation
According to Oleh Ivashchenko, head of Ukraine's Foreign Intelligence Service, China provides essential materials to Russian military factories, including machinery, chemicals, gunpowder, and electronic components for drones. Ivashchenko confirmed cooperation between Russia and China in at least 20 factories and five projects in the aviation sector between 2024 and 2025. Additionally, 80% of the critical electronic components in Russian drones come from China.
Accusations and Sanctions
Ukrainian President Volodymyr Zelenskyy accused China of providing direct military support to Russia, leading to sanctions against Chinese entities involved in the production of Russian missiles. Zelenskyy also stated that at least 155 Chinese citizens are fighting for the Russian army in Ukraine.
Sanctions Evasion and Illegal Trade
Various reports highlight how Chinese companies supply Russia with critical minerals, microelectronics, and drone components, often through shell companies and deceptive practices. Russia has also begun using cryptocurrencies for trade with China, while Chinese authorities study Western sanctions to prepare for potential conflicts over Taiwan.
Previous Cases of China-Russia Collaboration
Critical Minerals for Military Production: Chinese companies have supplied Russia with gallium, germanium, and antimony, essential minerals for producing drones and missiles. These same minerals were banned for export to the United States by China in December 2024.
Microelectronics and Drones: In 2024, 80% of the microchips imported by Russia came from China. These microchips were used in tanks, missiles, and aircraft. Additionally, Chinese companies provided long-range attack drones to Russia.
Disguised Copper Trade: The Russian Copper Company (RCC) and Chinese companies disguised the trade of copper wire as scrap metal to evade taxes and sanctions.
Military Vehicles: China supplied Desertcross 1000-3 off-road vehicles and "Tiger" armored trucks to the Russian army, used in the war in Ukraine.
Cryptocurrency Payments: Starting in 2024, Russia began using cryptocurrencies for trade with China, creating a dedicated working group to facilitate these transactions.
Technological and Satellite Support: China provided satellite imagery and technological support to enhance Russia's military capabilities.
Energy Collaboration: The China National Petroleum Corporation agreed to pay for Russian gas in renminbi (RMB), reducing the use of dollars and euros in international transactions.
Sanctions on Chinese Entities: The United States and the European Union imposed sanctions on several Chinese companies for their involvement in supplying electronic components and military materials to Russia.
Drone Production in China: The Russian subsidiary IEMZ Kupol developed and produced long-range attack drones in China for use in the war in Ukraine.
Economic and Financial Support: China established an interagency group to study the impact of Western sanctions on Russia and prepare for potential sanctions related to Taiwan.
Sanctioned Chinese Entities: The United States added numerous Chinese entities to the "Entity List" for their involvement in supplying microelectronics and military components to Russia.
Infrastructure Projects: The China Railway Construction Corporation (CRCC) was included in the list of "international sponsors of war" for building infrastructure in Russia.
Supply of Vehicles and Equipment: Chinese companies like Shandong Odes Industry and Shaanxi Baoji Special Vehicles Manufacturing Co., Ltd. supplied vehicles and armored trucks to the Russian army.
Gas Agreements: Gazprom and the China National Petroleum Corporation agreed to make payments in rubles and renminbi to support the ruble and reduce the use of the dollar.
Conclusions
The relationship between China and Russia represents a significant challenge for the international community, highlighting the need for stricter monitoring and more effective measures to counter sanctions evasion. The cooperation between the two countries, spanning the military, energy, and technology sectors, underscores the urgency of coordinated action by Western democracies.
Download Extrema Ratio reports on economic, military, scientific and financial cooperation between China and Russia.
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