China has moved closer to Russia as the US-China trade war drags on indefinitely.
Chinese Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev met on Wednesday and pledged to double the trade volume between the two countries in five years.
Trade volume will be increased from more than $100 billion to $200 billion by 2024.
Medvedev said both countries will partner up in energy, technology and agriculture sectors to boost trade.
“The plan is to achieve that mainly through joint projects in the fields of energy, industry, hi-tech and agriculture,” said Medvedev to reporter in Russia.
“We are consistently working to remove barriers that limit the development of agricultural trade. It concerns the supply of soybeans, wheat and a number of other crops to China,” added Medvedev.
China has become Russia’s biggest trading partner over the past nine years. Bilateral trade between the two countries increased by nearly 30 percent last year.
Li’s meeting in Russia was to commemorate 70 years of China-Russia diplomatic relations. The People’s Republic of China will celebrate its 70th anniversary on October 1.
US-China trade relations have deteriorated the past 15 months. Trade negotiations will restart on Thursday but analysts don’t see a resolution being made between the two countries in the near future.
The Organization for Economic Cooperation and Development (OECD) downgraded the condition of the global economy on Thursday because of the ramifications of the ongoing trade war between the world’s two largest economies.
The Paris-based organization downgraded global GDP growth by 0.3 percentage points to 2.9 percent for 2019. It also decreased GDP growth in 2020 by 0.4 percent to three percent.
“Escalating trade policy tensions are taking an increasing toll on confidence and investment, adding to policy uncertainty, weighing on risk sentiment in financial markets, and endangering future growth prospects,” stated the OECD report.