Foreign and Military Affairs

Russia, China to strengthen business ties

By Wu Jiao and Bao Chang (China Daily)
Updated: 2011-06-17 07:58

Russian dancers perform at the 22nd China Harbin International Economic and Trade Fair on Wednesday. More than 10,000 business people from 58 countries and regions are expected to take part in the event, including participants from 22 oblasts of Russia. [Photo / Xinhua]

Neighbors hope to achieve $200b bilateral trade volume by 2020

MOSCOW / BEIJING - China and Russia on Thursday pledged to increase their bilateral trade to $200 billion by 2020 from $55.4 billion last year, with energy cooperation playing a major role.

In a joint declaration signed in Moscow by President Hu Jintao and Russian President Dmitry Medvedev, the two sides also vowed to establish a strategic and long-term energy partnership.

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Although an expected deal for Russia to supply 68 billion cubic meters of natural gas to China annually for the next 30 years was not signed, Medvedev said the two sides have been working on related agreements and the deal, once realized, will contribute greatly to bilateral trade.

Companies from the two countries on Thursday also signed an agreement on renewable energy cooperation, under which Chinese companies will help Russia develop its rich renewable energy resources.

According to the General Administration of Customs, the trade volume between China and Russia reached $55.4 billion last year, increasing 43.1 percent year-on-year, making China Russia's largest trade partner.

From January to April, the trade volume hit $22.4 billion, up more than 30 percent from the same period a year earlier.

Feng Yujun, director of the Russian studies division at the China Institutes of Contemporary International Relations, said the high growth rate in bilateral trade shows that the two economies complement each other.

With huge potential in areas such as high-tech, investment and infrastructure, the target set for 2020 is attainable, Feng said.

Xinhua News Agency reported that China is willing to strengthen its cooperation with Russia and other energy-producing countries to ensure the stability of the world energy market and obtain mutual benefits.

In recent years, the amount of investment between the two countries has risen rapidly and cooperation programs have become more common among different sectors.

In 2009, the two countries endorsed the Sino-Russian Investment Cooperation Plan and a planning outline for regional cooperation between Northeast China and the Russian Far East region and East Siberia.

"Energy, wood processing, high and new technology and the service business in Russia have become major fields in which Chinese enterprises have a great interest in investing," said Li Hui, the Chinese ambassador to Russia.

China's non-financial direct investment in Russia rose by more than 70 percent last year.

To increase trade between the two countries, China Chengtong Development Group invested $350 million to establish the Greenwood International Trade Center.

The trade center occupies 200,000 square meters, has a total construction area of 132,600 square meters and is China's largest investment project in Russia.

Apart from serving as a means for Chinese products to enter the Russian market, the center will also help burnish the brand image of made-in-China products sold in Russia.

Sergey Razov, Russian ambassador to China, said Sino-Russian trade has regained the vigor it had before the 2008 world economic downturn, and deep economic cooperation will lay a solid foundation for the promotion of the China-Russia strategic partnership.

President Hu began a four-day visit to Russia on Wednesday. He will participate in the St Petersburg Economic Forum on Friday.