In this note we examine the latest on China’s economy and markets. First, comments on China’s connection to the war in Ukraine since its financial and energy decisions may dilute the effectiveness of sanctions on Russia: • Energy. As shown below, Europe and China are large importers of energy while Russia is a large exporter. So far, Russian gas exports to Europe are down ~15% from 2021 average levels (2nd chart). But if Europe permanently reduced exposure to Russian gas, China could step in over the next decade. The Power of Siberia expansion and Sakhalin projects could eventually add ~80 bcm per year to Russia’s ... (full story)