Sino-Russian cooperation in the development of alternative financial and payment mechanisms

This paper analyzes Sino-Russian cooperation in the development of alternative financial and payment mechanisms within the context of the current international financial system. The focus is on explaining the motivations and nature of this cooperation using the theory of balance of threats, supplemented by approaches based on structural power, weaponized interdependence, and monetary power. The aim of this thesis is to answer the question of how to explain the cooperation between China and Russia in building alternative financial and payment mechanisms. The research is based on a qualitative case study that analyzes the current structure of the international financial architecture and identifies key manifestations of U.S. financial dominance, particularly the role of the U.S. dollar and control over the global payment infrastructure. Based on this analysis, the study examines specific steps taken by both countries toward de-dollarization, the development of alternative payment systems, and the increased use of national currencies in bilateral and multilateral relations. The findings suggest that Sino-Russian cooperation in this area can be interpreted as a form of balancing strategy against the structural dominance of the United States in the global financial system. This cooperation is motivated by an effort to reduce the vulnerability arising from the centralization of financial networks and the possibility of their use as a tool of political coercion. At the same time, however, the limits of this process are identified, stemming primarily from the persistent dominance of the dollar, the network effects of the international monetary system, and the asymmetry between the two states.