THE YUAN TRAP: Xi Jinping Is Cannibalizing Russia’s Economy While Putin Calls Him ‘Friend’—Is the Kremlin Being Played for Fools?

While Vladimir Putin stands in the Great Hall of the People calling Xi Jinping his “dear friend,” the reality in the Russian streets is a cold, hard slap in the face. This isn’t a partnership of equals; it’s a predatory takeover. Xi is treating Russia like a fire-sale warehouse, and the Kremlin is too desperate to stop him.

The “Villain” here isn’t just the West’s sanctions; it’s the “friend” in Beijing who is systematically dismantling Russian domestic industry. The “Hero”? The Russian worker—the Lada assembly line mechanic who just saw his workweek slashed to four days because Chinese “dumping” has made Russian cars a joke in their own country.

The Controversy Everyone is Ignoring: The “Friendship” Tax

The shock factor that the mainstream media won’t touch is this: China is charging Russia for its own isolation. Beijing isn’t helping Russia out of the goodness of its heart. It is buying Putin’s oil and gas at insulting discounts because it knows he has nowhere else to go. Meanwhile, it’s flooding the Russian market with cheap, mass-produced junk that is actively killing what’s left of Russian manufacturing.

We’re talking about a 59% plunge in Chinese car exports in early 2025… not because they stopped selling, but because Russia finally had to slap on protectionist “recycling fees” just to keep their own factories from going extinct. It’s a trade war disguised as a hug.

Deep Background: From Superpower to Gas Station

The “dirty history” of this relationship is a tragedy of errors. Since the 2022 invasion, Russia has sprinted away from the West only to fall into a deeper, darker hole in the East.

• The Asymmetry: Russia accounts for just 3% of China’s exports. China can live without Russia; Russia cannot live without China.
• The Dependency: The share of Chinese products in Russia’s total imports jumped from 23% in 2021 to a staggering 57%.

In the early 2000s, Russia exported high-value machinery to China. Today? Russia is essentially a giant gas station for Beijing, receiving “technologically inferior” consumer trinkets in exchange for the lifeblood of its natural resources.

The Cold Hard Truth from the Insiders

The insiders aren’t whispering anymore; they’re screaming.

• Lada’s Death Spiral: AvtoVAZ CEO Maxim Sokolov admitted that Chinese “dumping” has crossed all imaginable boundaries. Production is being halved as sales of the flagship Lada plunge.
• The Coal Crisis: Russian coal exports to China dropped 18.1% in September 2025 alone. Losses in the sector have reached $4 billion this year as China hits Russia with tariffs while buying from Ukraine instead.
• The Pipeline Pipe-Dream: While Russia begs for the “Power of Siberia 2” pipeline, China is keeping noticeably quiet. They haven’t confirmed a thing, leaving Putin holding an empty checkbook.