China and Russia have agreed to expand their economic cooperation, including the establishment of a planned banking system, which analysts believe is aimed at supporting their militaries and undermining the U.S.-led global order. This agreement was announced during a meeting between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin in Moscow. The two countries plan to strengthen their payment and settlement infrastructure by opening corresponding accounts and establishing branches and subsidiary banks in each other’s countries. This move is seen as a way to facilitate smooth payment in trade and reduce reliance on the U.S. dollar.

The Russian government has highlighted the increased use of national currencies in mutual payments, with the share of rubles and renminbi exceeding 95%. The meeting resulted in the signing of over a dozen agreements on economic, investment, and transport cooperation. Analysts, including David Asher from the Hudson Institute, have expressed concerns that this cooperation could lead to Russia’s assistance to China in the Pacific and South China Sea, in return for Beijing’s support for Moscow’s economy and industry, which aid Russia’s war efforts in Ukraine. The U.S. State Department has also expressed concerns about China’s support for rebuilding Russia’s defense industrial base, particularly the provision of dual-use goods. Despite these concerns, some experts believe that China’s economic ties with the West are too important for it to risk by fully supporting Russia’s military efforts.