In an annual conference that brings together Russia's leading tech companies and decision-makers, ExpoElectronica, the increasing Chinese presence this year has raised eyebrows and shed light on the expanding economic relationship between Beijing and Moscow. With 348 Chinese counterparts attending the event, almost equaling the number of Russian tech leaders represented, it is evident that China's footprint in Russia's advanced technology sector is growing.

The surge in Chinese exhibitors at ExpoElectronica over the years reflects Beijing's increasing involvement in the Russian economy, particularly in advanced technology that has become harder for Russian companies to access due to Western sanctions imposed after Moscow's invasion of Ukraine. In 2023, only 119 Chinese and Hong Kong exhibitors were present, a significant increase compared to eight in 2021.

However, concerns arise as some of the companies exhibiting at this year's ExpoElectronica have already been sanctioned by the United States for assisting Russians in evading international trade restrictions. IMAXChip Technology, Izzition E-Technology, and Sinno Electronics have all faced sanctions for their involvement in providing advanced electronics, electronic components, and foreign items to Russia's defense industry.

China's position as Russia's largest trade partner is reinforced by the fact that bilateral business between the two nations reached a record high of around $240 billion in 2023. While Beijing has refrained from aligning with Western sanctions on Russia and has shown limited support for Ukrainian appeals, China has not directly provided military aid to Russia. Nevertheless, Chinese companies have played a crucial role in rebuilding Russia's economy and military capabilities during the ongoing conflict with Ukraine.

The growing economic ties between China and Russia have geopolitical implications, magnified by the reluctance of major Chinese banks to process Russian payments due to the threat of secondary American sanctions. This has led to payment delays of up to six months for Russian companies, affecting cross-border trade.

As tensions rise in the Sino-Russian partnership, the U.S. is reportedly considering imposing new sanctions on Chinese banks facilitating trade with Russia. Such measures could significantly impact the willingness of international banks to engage in business with Russia, further disrupting its economy.

The deepening alignment between Moscow and Beijing has raised concerns among Western rivals and policymakers who fear a strengthened Russia-China alliance. However, experts suggest that while the relationship may have its ups and downs, it is likely to continue given Chinese President Xi Jinping's view that China is rising while the West is in decline. The close relationship between Xi Jinping and Russian President Vladimir Putin serves as a foundation for China's agenda to make adjustments to the international order and weaken the influence of the United States.

Despite speculation about China leveraging Russia's reliance for its own benefit, it remains uncertain whether Beijing intends to use its leverage in this manner. Some experts argue that Xi Jinping values the relationship itself and would hesitate to weaken it by exerting leverage. However, the limited involvement of Russia in China's priority issues suggests a cautious approach by Moscow.

As the ExpoElectronica conference comes to a close, the significant presence of Chinese companies serves as a reminder of the deepening economic ties between China and Russia. The growing trade partnership and increasing Chinese involvement in Russia's advanced technology sector have major implications for both countries and the international geopolitical landscape.