
In the Arctic, Russia needs China to realize many of its goals for infrastructure development and resource extraction.But Chinese investment is not materializing as broadly as Russian business interests would like, while Beijing often uses its economic leverage to extract favorable commercial terms. Russia considers economic development of its eastern territories a strategic imperative, for which Chinese investment is essential.The arrangement is fairly stable for now, yet fears of instability from South and Central Asia have forced Beijing to slowly increase its security profile there. The prospects for Russia’s Eurasian Economic Union look dim against China’s Belt and Road Initiative. In Central Asia, China is emerging as one of the most influential players, and there is little Russia can do about that.

Engagement in these theaters has tested Russia’s and China’s abilities to manage their differences and translate the rhetoric of partnership into tangible gains. The balance of competition and cooperation is most evident in Central Asia, the Russian Far East, and the Arctic.

But their relationship is complex, with lingering mistrust on both sides. Russia and China share a common desire to challenge principles of the Western-dominated international system. Since the collapse of Russia’s relationship with the West over Ukraine, the Sino-Russian strategic partnership has become more of a reality.
