The $400 billion gas agreement that China inked with Russia wouldn’t be such a big deal if it weren’t for tensions that both Russia and China have with Western nations.
Russia has upset the U.S. and European countries by annexing Crimea in March from Ukraine. Sanctions against Russia followed with tensions building. Russia’s gas deal with China signals its way around Europe as Russia’s main energy market.
China has landed on the West’s trouble list by positioning an oil rig in the South China Sea on May 1. Vietnam has protested, and public anger over China’s aggressive action continues to build.
The U.S. this week also accused Chinese military hackers of stealing secrets from U.S. companies including nuclear power, solar power and steel. The gas deal China and Russia is an indication that the world’s two biggest bad boys at the moment are thumbing their noses at the West.
Each is finding new trading partners with the other, content to not be concerned. The geopolitical balance has been thrown off and awaits the West’s next move.