Beijing Has Cut Back on Purchases of Most russian Raw Materials

In September, the government of the PRC cancelled the unofficial subsidies that had been helping state-owned companies import copper and nickel from russia. Previously, these benefits – in the form of discounts or fixed payments – compensated for logistics costs, provided competitive advantages to russian suppliers, and supported the stability of supply chains.

The decision was part of a strategy to optimize government spending and diversify import flows. Beijing is actively investing in copper and nickel mining in Indonesia, Africa, and Latin America, while seeking to protect the domestic market from price distortions caused by russian metals sold at a discount due to Western sanctions. The cancellation of subsidies reduces the artificial advantage of suppliers from the rf and helps stabilize prices for Chinese manufacturers.

The changes took place against the background of a decline in Chinese imports of most russian raw materials in January–June 2025: of oil – by 11 % year-on-year, of petroleum products – by 28 %, of LNG – by 13 %, of timber and coal – by 10 %.

The consequences for russian companies will be serious: the competitiveness of their metals in China will decline, while the profits of the largest producers – such as “Norilsk Nickel” and “Rusal” – will decrease significantly.