China and Russia deepened their strategic partnership this week, signing more than 20 cooperation agreements that span energy, aviation, artificial intelligence, agriculture, healthcare, and science. The highlight: a binding deal to build the long-awaited Power of Siberia 2 gas pipeline, touted as the largest project in the global gas industry.
A Summit of High Stakes
The agreements were signed on September 2, following talks between President Xi Jinping and President Vladimir Putin during the Shanghai Cooperation Organisation (SCO) summit in Tianjin. Both leaders described ties as being at their “highest level in history,” stressing that the relationship had withstood global turbulence and now serves as a model for major-power diplomacy.
Putin praised China’s “warm welcome” and said the SCO is helping revive “genuine multilateralism.” Xi, in turn, stressed that Moscow and Beijing’s cooperation is a counterweight to “hegemonism and power politics,” a clear jab at Washington.
The Gas Mega-Project
Gazprom CEO Alexey Miller announced that a legally binding memorandum had been signed for Power of Siberia 2 — a massive pipeline that will cross Mongolia and deliver up to 50 billion cubic meters of Russian gas annually to China for 30 years. Miller called it the “largest and most capital-intensive project in the world’s gas industry.”
Russia also agreed to boost existing flows through current pipelines from 48 bcm to 56 bcm per year, roughly half of what Moscow exported to Europe before the war in Ukraine. The expansion reflects Russia’s pivot away from European markets, where demand is shrinking under sanctions and plans for an outright ban on Russian gas by 2027.
Still, key questions remain. Beijing has yet to formally confirm Miller’s announcement, and details on pricing, construction timelines, and whether China can flexibly scale purchases have not been disclosed.
Beyond Energy
The 22 agreements covered a wide range of sectors. Notable deals included:
- A cooperation roadmap between Gazprom and China National Petroleum Corporation.
- A memorandum between Rosatom and China’s Atomic Energy Agency on nuclear energy.
- Collaboration on Russia’s “Dust Monitoring of the Moon” instrument for China’s Chang’e-7 spacecraft.
- Protocols for expanded agricultural trade, including reindeer and deer antler exports.
Strategic Signals
For Putin, securing movement on Power of Siberia 2 is a major diplomatic win. It underscores Russia’s ability to find alternative buyers as Western markets close and tariffs intensify. For Xi, it reinforces China’s role as Russia’s indispensable partner, even as Beijing carefully manages its energy dependence.
The timing is also significant. US President Donald Trump has tightened tariff pressure on countries trading with Russia, including a 50% levy on India over its oil imports, and is urging European allies to escalate restrictions. Against that backdrop, the Xi-Putin handshake and pipeline announcement serve as a direct message of defiance: the Eurasian bloc is pressing ahead regardless of Washington’s sanctions.
Bottom Line
The SCO summit delivered more than symbolism. By advancing Power of Siberia 2 and expanding existing gas flows, Beijing and Moscow are locking in decades of deeper energy integration. Yet uncertainty lingers over pricing and timelines, leaving analysts cautious. What is clear, however, is that China and Russia are accelerating a partnership that both leaders see as central to their economic and geopolitical futures — and they are doing it under the banner of confronting U.S. unilateralism.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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