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Xi-Putin Alliance Spooks Trump—Geopolitical Tensions Could Rattle Markets

Xi-Putin Alliance Spooks Trump—Geopolitical Tensions Could Rattle Markets

Published:
2025-05-09 09:30:09
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Best friends Xi and Putin are plotting against Trump, and it’s scaring him

The deepening strategic partnership between China’s Xi Jinping and Russia’s Vladimir Putin has Washington scrambling—and not just diplomatically. When superpowers play chess, portfolios tremble.

Behind closed doors: Intelligence reports suggest coordinated efforts to undermine US influence, with Trump’s inner circle reportedly ’spooked’ by the duo’s economic and military synchronization. No wonder gold and BTC are flirting with ATHs again.

Market fallout: While DC panics, hedge funds are already pricing in volatility—because nothing juices trading volumes like old-fashioned geopolitical panic (except maybe a Fed pivot).

Putin uses parade to push global support

During the 80th anniversary of the end of World War II, Putin leaned hard into symbolism. Standing with Xi, he praised the “sacred” victory over Nazi Germany, saying the win still matters today. He made the usual stretch, linking that historical fight to his current war in Ukraine, which he keeps trying to sell as a battle against modern fascists. 

“Together with our Chinese friends, we firmly stand guard over historical truth,” Putin said, “protect the memory of the events of the war years, and counteract modern manifestations of neo-Nazism and militarism.”

That narrative’s been rejected flat-out by Ukraine and much of the West, who say Putin is using fake justifications for an invasion. Still, the Victory Day parade rolled on. Chinese troops made up the biggest foreign unit in the show, marching alongside soldiers from Vietnam, Belarus, Laos, Mongolia, and Egypt. 

Robert Tollast, a researcher at the Royal United Services Institute in London, said this display shows both countries believe they’ve got “nothing to lose.” He said the way Putin and Xi are handling America signals their patience with diplomacy is over. The alliance is open, and it’s real.

China keeps Russia afloat while Trump scrambles

Putin needed this visit. With US and EU sanctions hammering his economy since 2022, Russia’s been gasping for support. Xi delivered. While China claims it’s neutral in the Ukraine war, it’s also quietly buying tons of Russian oil and selling parts like microchips that keep Russia’s drones and missiles flying.

Xi said the China-Russia friendship is “a natural continuation” of a long-standing bond, and that both nations WOULD protect the interests of developing countries while promoting “multipolar economic globalization.”

For Putin, this wasn’t just about foreign optics. It was about telling the people back home he’s still got powerful allies. Stephen Hall, a politics lecturer at the University of Bath, said Xi’s visit and the appearance of other leaders from Latin America, Africa, and Asia help Putin push the idea that Russia isn’t isolated. He still wants to look like a reliable global player, even if the US wants to keep him boxed out.

Meanwhile, TRUMP is trying to fix things with China while watching Xi and Putin cozy up. During an event where he announced a new trade deal with the UK, Trump admitted tariffs on Chinese goods—some as high as 145%—might come down. 

He said, “You can’t get any higher. It’s at 145, so we know it’s coming down.” A meeting between US and Chinese trade officials is planned this weekend in Switzerland, and Trump tried to spin it positively. “I think it’s a very friendly meeting,” he said. “They look forward to doing it in an elegant way.”

Xi first called Putin his “best friend” in 2019 during a state visit to Moscow. He said, “Russia is the country that I have visited the most times, and President Putin is my best friend and colleague.” Putin has responded in kind ever since, calling Xi a “dear friend” during their most recent meeting in Beijing in May 2024.

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