As Putin meets with Xi, China is forced to consider how far it will go to help a friend

As Vladimir Putin and his large entourage touch down Thursday in Beijing for a two-day state visit, there were be plenty of public overtures about cooperation, but with China facing increasing pressure from the U.S. over its trade relationship with Russia, China's President Xi Jinping will have to figure out how far the country is willing to go to prop up what was once described as a "no-limits" partnership.

Putin's visit is his first foreign trip since he was inaugurated for his fifth presidential term earlier this month.

It comes after two separate trips to China in April by U.S. Secretary of State Antony Blinken and U.S. Treasury Secretary Janet Yellen, who have repeatedly warned Beijing there would be repercussions for shipping technology to Russia that it could use to rebuild its battlefield stocks. 

"I think that the most important practical elements of this visit will be the underwater part of the iceberg," said Alexander Gabuev, the director of the Berlin-based Carnegie Russia Eurasia Center. 

"A large part of the agenda for Putin is to find these safe ways around sanctions that will enable a stream of critical components for the Russian military machine."

With Russia restricted from U.S. and European markets, China has become an even larger trading partner and political ally for the Kremlin. While both countries are united by their close economic ties and desire to challenge the West, the relationship is being put to the test as the U.S. dials up the pressure on countries that are helping Russia get around sanctions.

According to Chinese customs data, trade between Russia and China surged by more than 26 per cent in 2023, totalling more than $240 billion US. China sold a range of goods including cars and electronics to Russia, while buying up billions of dollars in Russian oil and gas. 

But observers note that trade between the two countries has dropped significantly this year and was down 15 per cent in March over the same period in 2023. 

This is seen as a likely consequence of repeated warnings from Washington, which has threatened to block foreign banks from accessing the U.S. financial system if they are found to be  processing transactions that aid Russia's military industrial base.

"Chinese banks are really apprehensive of the risk. They see Russia as somewhat toxic," said Gabuev in an interview with CBC News on Tuesday from London. 

"They introduce additional procedures to make sure that they are not doing any military-related payments."

At the beginning of May, the US sanctioned 20 companies in China and Hong Kong including one which it accused of providing Russia with the parts it needs to produce drones.

On Wednesday during a visit to Kyiv, Blinken vowed that the U.S. would keep imposing sanctions on Chinese businesses that are helping to back Russia's war. 

He said while China hasn't provided Russia with weapons, the U.S. was "deeply concerned" about the support it had given to the  country's defence industry.