Russia and China Counter-balancing
Today’s announcement that the Chinese Navy will hold joint exercises with Russia in the Mediterranean should come as no surprise, but must be seen as a clear indication of the strengthening relationship between China and Russia to counter-balance U.S. power.
With Russia’s increasingly strained relationship with the U.S., China is making it known across the globe that it is is establishing a strategic relationship in the region, which comes right after the United States and Japan announced increased military cooperation.
Although Russia and China have conducted joint naval exercises since 2012, this will be the first time China is venturing so far from home, which demonstrates their increased naval abilities.
Russia has also recently become a large participant in the China-led Asian Infrastructure and Investments Bank (AIIB), which means they will be able to influence policy, giving them increased global economic power.
The implications for illicit trade from this alliance are huge. By putting the biggest counterfeiters in the world, China, with largest money launderers, Russia, this is a recipe for an un-regulated disaster.
Continuing to promote regulated free trade through Western led institutions will help prevent a slide into a booming black market which Russia and China having little interest in combatting.
