In the far northeast of China, where it
borders Mongolia and Russia, the city of
Mangali has grown from a small trading
town to a central pillar of the Chinese
economy.
It is home to the busiest landport
between China and Russia. The latest
figures from the local government show a
400% increase in border trade year on
year.
>> Ah, good.
>> Good.
At several logistics centers across the
city, we found Russian trucks lined up,
having dropped off or picked up their
cargo.
Timber is one of the main commodities
being traded, imported from Russia,
processed in China. This wood will
become furniture or even chopsticks
destined for domestic and international
markets.
The manager of one timber plant we
visited said freight volumes were
growing every year.
In Mangali, you can see the importance
of a trading partnership which the
Communist Party describes as the most
strategically significant in the world.
One reason Russia's economy has survived
Western sanctions is its growing
commercial cooperation with China.
Even blocking Moscow from trading in
dollars and euros has ended up helping
Beijing in its bid to end the dominance
of the dollar. Before the war in
Ukraine, 75% of trade between Russia and
China was being done in US dollars. In
the last 3 years, that has completely
changed. Now more than 90% of
transactions between the two countries
are being made in the Russian ruble or
Chinese yuan. There has also been a
workaround in the luxury car market.
Most western brands ceased exports to
Russia in 2022.
But at this car sales room, we saw
several almost new Mercedes, VWs, and
Range Rovers ready to be shipped across
the border.
Business has been slower this year so
far, but Xiang Leen believes Russia and
China are on the same page, so things
will improve.
>> I believe it's going to get better and
better.
>> Her shipping company is one of many
located next to the customs checkpoint
on the border. She said it has been good
for many businesses to be able to pay in
alternative currencies.
Previously, it was only one way using US
dollars, but now you can choose Y or the
ruble.
At
>> Mangal tourist spots, President Putin
can be found on everything from
cigarette packets to magnets alongside
President Xi. It is their relationship
that is at the heart of rising trade
between the two countries and the
shifting spheres of influence in global
order.
Debbie Edward News at 10. Manuli.