China Takes Russia's Side Over A Disputed Arms Buy With Ukraine

Money Dispute With Kiev Threatens Future Chinese Arms Buys -- Washington Times

China is colluding with Russia to avoid paying $14 million to the Ukrainian government for a second Zubr-class amphibious landing hovercraft — or air-cushioned landing craft — that was delivered by Kiev to the Chinese People’s Liberation Army in early March. The delivery came days before the Russian annexation of Crimea, where the vessel was built. At issue is the question of who gets the $14 million.

Since the contract was signed between China and Ukraine before Russia’s intervention in Ukraine, Beijing is obligated to pay the remaining $14 million for the delivered vessel to the government in Kiev.

But Russia vehemently opposes any Chinese payment to Kiev and insists that China pay the fund to two shipbuilding companies located in Crimea, now controlled by Moscow after the region was annexed by Russia.

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My Comment: Russia is far more important to China than Ukraine .... they are not going to upset that relationship .... and definitely not over two hovercraft and a few million dollars.

Russia's President Vladimir Putin shakes hands with his China's counterpart Xi Jinping (RIA Novosti/Mikhail Klimentiev)

No, Russia and China Aren’t Teaming Up Against America -- Kyle Mizokami, War Is Boring

The odd couple of totalitarian regimes is less powerful than you think.

In mid-November, Russian defense minister Sergey Shoigu flew to Beijing for high-level military talks. Shoigu was scheduled to meet with Prime Minister Li Keqiang and Defense Minister Chang Wanquan to discuss “current issues of international and regional security and bilateral military and military-technical cooperation,” according to the Russian Tass news agency.

The prospect of a Russian-Chinese axis might sound scary to Westerners. But it’s not, really. Russia and China are both weaker than they appear. And they have as many reasons to compete as they do to cooperate.

And even if they do get along, the combined military power of Russia and China combined is only slightly more formidable than either country going to war separately.

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My Comment: In my opinion .... there is zero chance of a Russian - Chinese military alliance. Both countries may be in the process of expanding and modernizing their military .... but their national defense policies are focused more on their own regional/border problems and issues rather than on the West. If there will be an alliance against the West .... it will primarily on political and economic issues .... specifically on diminishing the role that Western financial institutions (WTO, IMF, World Bank, etc.) have on influencing broader global economic policies that may at times come in conflict with what China and Russia may want.

A Russia - China Political, Economic, And Military Alliance?

Russia, China Plan War Games, Arms Sales. Could Alliance Be In The Cards? -- Fred Weir, CSM

With Russia alienated by the West and China eager to buy high-end weaponry, a joint military pact – though still a long way off – looks increasingly seductive to both.

Moscow — Russia and China are planning to hold large-scale joint naval drills in the Mediterranean and Pacific next year, as deepening economic and political cooperation appear to be driving the two giants to at least discuss the idea of forming a military bloc.

Both countries are rapidly jacking up their military spending and modernizing their forces. China is set to spend an unprecedented $132 billion of defense this year. Meanwhile, Russia is in the midst of a sweeping five-year $700-billion rearmament program, and has lately begun restoring Soviet-era bomber patrols across much of the West's airspace. Russian officials say the upcoming naval drills are designed to demonstrate that Russian and Chinese fleets can operate together in bodies of water half a world apart.

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My Comment: There are differences .... culture being the biggest one. But there are economic and national security interests that are now complementing each country's long term goals and policies, and I do expect this relationship to not only grow but to prosper in the coming years.

Russia - China Vow To Strengthen Military Ties. Will Conduct Joint Naval Exercises In The Mediterranean And Pacific In 2015

China's President Xi Jinping (right) and his Russian counterpart, Vladimir Putin, attend a welcome ceremony at the Xijiao State Guest Hotel, before the fourth Conference on Interaction and Confidence Building Measures in Asia summit in Shanghai, on May 20, 2014. Reuters/Carlos Barria

Russia And China To Conduct Joint Naval Exercises In The Mediterranean And Pacific In 2015 -- IBTimes

The navies of Russia and China have agreed to conduct naval exercises in the Mediterranean Sea and Pacific Ocean in spring 2015, according to a statement issued by the Russian navy on Wednesday. That brings two potential U.S. adversaries closer together and sees China assert its presence in a region, the Mediterranean, far from its shores in another development that marks its emergence as a serious military power.

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More News On Russia And China Vowing To Strengthen Military Ties

Russia and China Vow to Tighten Military Ties -- Moscow Times
China, Russia step up defence ties -- The Hindu
Russia and China to conduct joint naval drills next year -- Want China Times
China and Russia in naval co-operation vow -- Financial Times
Russia, China plan joint naval drills in Mediterranean Sea, Pacific Ocean in 2015 -- Russia Beyond The Headlines
China and Russia push back against the US -- Financial Times

My Comment: Chinese naval vessels in the Mediterranean conducting military exercises .... I have to let that one sink in.

Is China Financing Russian Aggression?

Russia’s President Vladimir Putin (R) and his Chinese counterpart Xi Jinping leave after shaking hands before the opening ceremony of the fourth Conference on Interaction and Confidence Building Measures in Asia summit in Shanghai May 21, 2014. REUTERS/Mark Ralston/Pool

China Is Financing Putin’s Aggression -- Gordon Chang, Daily Beast

Russia’s economy is tanking, but Putin is sending long-range bombers on sorties in the Gulf of Mexico and combat troops into Ukraine—thanks to billions in new energy deals from Beijing.

President Obama may say China can be America’s “partner,” as he did Monday in Beijing, but the Chinese calculate their interests differently. The real partnership is between the Dragon and the Bear.

On Sunday in Beijing, on the sidelines of the Asia-Pacific Economic Cooperation summit, Russia’s state-owned gas giant Gazprom signed a contract to sell gas from western Siberia to China’s own state energy giant, China National Petroleum Corp.

The Gazprom-CNPC deal is not the only major recent Russia-China energy deal. Last October, state-owned Rosneft, Russia’s biggest oil producer, gave CNPC an equity stake in an oil field in eastern Siberia. This May, Gazprom and CNPC inked a 30-year, $400 billion gas pact, another landmark arrangement in what AFP has described as a rapidly expanding “energy alliance.”

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My Comment: Russia's sale of a percentage of it's oil industry to China was (to me) a surprise. The Russian government has extensive cash reserves, but for reasons of his own Putin wanted this cash to spend elsewhere, and China was more than willing to accommodate him. In this context .... this Chinese - Russian relationship is truly becoming a match in heaven .... China-Russia is a match made in heaven, and that’s scary (Anatole Kaletsky, Reuters).

Russia's New Military Doctrine Will Designate The U.S. And NATO As Threats Or Adversaries

Russian President Vladimir Putin and Chinese President Xi Jinping talk as they depart the APEC Summit family photo, in Beijing November 10, 2014. (Reuters/Kevin Lamarque)

Putin Builds China Links As Ties With West Fray -- Financial Times

When Vladimir Putin met China’s president Xi Jinping, a memorandum of understanding for a second massive gas supply deal caught most of the attention.

For the Russian president, the deal may be less appealing for its commercial benefits than its ability to advance the larger goal of cementing ties with its eastern neighbour.

According to Russian officials and security analysts, Moscow’s worst stand-off with the west since the end of the cold war has convinced Mr Putin’s government that it must moor its security interests to China because the Euro-Atlantic security architecture is broken beyond repair.

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My Comment: The imposition of sanctions. The blacklisting of Russian political and economic leaders. The deployment of anti-missile systems in eastern Europe. This .... coupled with threats of even more western actions .... was the "final straw that broke the camel's back". We are all now entering a new and (potentially) very dangerous place.

Russian President Putin Goes To China

Putin Seeks China Security Ties As Enmity With West Grows -- Financial Times

When Vladimir Putin met China’s president Xi Jinping on Sunday, a memorandum of understanding for a second massive gas supply deal caught most of the attention.

For the Russian president, the deal may be less appealing for its commercial benefits than its ability to advance a larger strategic goal of cementing ties with its eastern neighbour.

According to Russian officials and security analysts, Moscow’s worst stand-off with the west since the end of the cold war has convinced Mr Putin’s government that it must moor its security interests to China because the Euro-Atlantic security architecture is broken beyond repair.

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More News On Russian President Putin's Visit To China

Russia, China Sign Energy Deals at APEC Summit -- VOA
Russia, China add to $400 billion gas deal with accord -- Fuel Fix
Putin, Xi Jinping sign mega gas deal on second gas supply route -- RT
Xi, Putin pledge to deepen ties -- AFP
Putin Says Russia and China Will Expand Trade in Yuan -- Moscow Times/Reuters
Smart-gift: Putin presents Chinese leader with dual-screen YotaPhone -- RT

How Russia Could Help China's Military Become Even Deadlier

Photo: World Affairs Board

Five Ways Russia Could Help China's Military Become Even Deadlier -- National Interest

The continued deterioration of relations between Russia and NATO may not yet have resulted in a new Cold War, but it’s undoubtedly produce an environment in which Russia has independent reasons to try to hurt the United States.

While the arms trade between China and Russia exploded after the fall of the Soviet Union, shipments of major systems slowed in the early part of last decade. Part of the reason was demand; China felt that it no longer needed to pay top dollar for Russian systems that it could build itself. Another reason, however, involved Russian intellectual property concerns stemming from Chinese copying, and potential export, of Russian military systems. This made Russia reluctant to export its most sophisticated weapons.

But now we find ourselves in a situation where Moscow has become willing to take risks in order to give Washington a headache. One way in which Russia can do this is overcoming any internal obstacles to the export of sophisticated weapons to China.

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My Comment: Forget about Russia .... there are a number of western nations who are more than eager to sell their military systems to China.