Kremlin Moscow Russia
© REUTERS/Maxim Shemetov
The Kremlin, Moscow, Russia (file photo)
Washington is making a serious mistake as it aims to deter the development of Russia and China, Russian President Vladimir Putin said at an investment forum in Moscow.

"Balanced international economic relations is not their [US] main goal, but their main strategic goal is curbing the development of China and Russia," the Russian leader told the 'Russia Calling' forum, adding that such an approach is a "deep" mistake that can backfire on the US and undermine its position.

Another reason for Washington's restrictions against its trade war rival, Beijing, is that the Chinese economy has proven to be more effective than the US economy, according to the Russian president. This could be the key factor of the trade war, and not the trade deficit as the US claims.

US policy targeting Russia and China is "unfair competition" and will continue for some time in the future, said Putin. However, this will not stop the growth of the global economy and will not plunge it into recession, according to the Russian president.

"In my opinion, growth rate of the global economy will increase, despite all the problems linked to trade wars, restrictions for political reasons and so on," he told the audience. "The global economy is unlikely to go into recession in the near future even with the trade war between the US and China."

Russia and its largest trade partner, China, have been working to boost mutual trade in their national currencies, the ruble and the yuan. The issue has been repeatedly discussed by the two sides and between the leaders, including during the St. Petersburg Economic Forum (SPIEF) in June.

Putin said that while the volume of bilateral trade in national currencies is still relatively low, it is steadily growing and can grow even faster as both the Russian and Chinese governments are working to boost it.