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I honestly think Russia and China are already competing. This Sino-Russian alliance is so bogus I can hardly believe people buy into it. It's interesting that, for all the talk, China and Russia have had one, soon two, major joint exercises. Yet, those are the only exercises they seem to have had. There don't appear to be any small-scale exercises going on between them, and the two are tied into the Shanghai Cooperation Organization. On the other hand China is constantly conducting joint exercises with other countries. They've had joint naval exercises with the U.S., India, and several European countries. They've had other joint training exercises with Central Asian and Thailand. Those may have been small little cooperative measures, but that's just it. Small cooperative measures are far more meaningful and important than giant, overdone exercises.|
Small exercises are more conducive with establishing some sort of common ground and brotherhood, if you will. A few ships sailing together is going to involve a more personal interaction between the forces, while large joint exercises seem to be little more than showing off to each other.
I personally think the SCO is just China's way of extending itself into Central Asia, but doing so in a way that gets Russia's approval. The ties with Russia are aimed mainly at China building up its military, but China is becoming far more capable by itself like with J-10 and other domestic projects. Eventually, Russia is gonna find itself with a China that doesn't need Russian weapons and doesn't want them. It will also be a China that is increasingly encroaching on Russia's backyard and becoming friendlier with the West.