Signs of closer Russia-China ties belie limited progress

RUSSIAN Prime Minister Dmitry Medvedev concludes on Thursday a multi-day trip to China where he has met President Xi Jinping and Premier Li Keqiang. The visit, strategically timed just before Donald Trump's trip to Asia and just after last week's landmark 19th Congress of the Chinese Communist Party, underlines the growing bilateral dialogue between Beijing and Moscow.

Coming after May's Belt and Road Forum for International Cooperation, attended in Beijing by Russian President Vladimir Putin, the primary emphasis of the visit was deepening the bilateral political and economic partnership, including around key regional and global issues such as the Korean nuclear stand-off and the Syrian conflict. On the economic front, the two already enjoy relatively extensive cooperation which has warmed in several areas since the crisis in Ukraine which has seen Moscow's suspension from the G-8.

In the period following escalation of those tensions, Russia has for instance announced plans for numerous cooperation projects with China including a new method of interbank transfers, and a joint credit agency that seeks to create a shared financial and economic infrastructure that will allow them to function independently of Western-dominated financial institutions. Moreover, the joint China-Russia Investment Fund, first established in 2012, has become a key channel for Russia - under Western sanctions - to secure financial support from Beijing, and it was announced this week that the fund will double in size.