Ukraine at crossroads: a tool for the West against Russia or friend of China?
- China woos one of Europe’s poorest countries with trade, gifts and loans
- US has warned that China’s investments could be a ‘double-edged sword’
With a GDP per capita of US$2,963 per year as of 2018 – lower than Iraq and Venezuela – Ukraine remains one of the poorest countries in Europe and is desperate for any trade and investment it can get.
China will surpass Russia by 2020 as Ukraine’s largest single trading partner. In 2018, bilateral trade between Beijing and Kiev reached US$9.8 billion, a staggering increase since 2014 – and more than double the value of trade between Ukraine and the United States.
“Ukraine cannot ignore the economic realities of the 21st century,” said Professor Tetyana Valerievna of the Kharkiv School of Economics.
“While we may be on a westward trajectory politically, we cannot ignore the fact that China will be our most important [trade] partner.”
And unlike agreements with Western countries and organisations such as the International Monetary Fund (IMF), Beijing insists its investments and loans don’t come with other strings attached.
