In particular, an agreement on a visa-free regime for 30 days will be signed with Kazakhstan. In collaboration with Uzbekistan, a project will be implemented to build a China-Uzbekistan-Kyrgyzstan railway, as well as an Uzbekistan-Kazakhstan-China-Laos-Thailand-Malaysia transport corridor. The construction project of the fourth line of the Turkmenistan-China gas pipeline, which will cross the territory of Tajikistan, will be discussed with Tajikistan and Turkmenistan.
Joint projects between China and Central Asian countries do not run counter to Russia’s interests in the region. On the contrary, such cooperation can further strengthen trade and economic relations between countries. China continues to strengthen its relations with Russia. The Chinese leader made his first state visit after being re-elected on March 10 for a third term by the National People’s Congress in Moscow. The meeting resulted in the signing of agreements on the development of key areas of Russian-Chinese economic cooperation: the countries intend to develop investment cooperation in the field of energy projects, technologies and innovations , and agriculture. The plans aim to increase financial cooperation and improve logistics for the development of bilateral trade. As Chinese Foreign Ministry spokesman Wang Wenbin noted, the trip “will promote strategic coordination and practical cooperation between Moscow and Beijing.”
Chinese and Russian companies intend to develop various projects. In April, the Sino-Russian Trade, Economic and Investment Cooperation Forum was held. The forum was the first event of this magnitude for the first time in the past three years. Chinese companies have made it clear that they intend to develop mutually beneficial long-term relations with Russia, despite the geopolitical situation.
Over the past few years, Russian-Chinese economic cooperation has seen steady growth, which has not been hampered either by the pandemic or by external geopolitical factors. In the short term, the partnership between Russia and China will not only not weaken, but will enter a new productive stage of development. Experts predict trade with China could grow by a third this year.
“Chinese companies, who came to Moscow and saw with their own eyes what is happening in Russia now, note that they are satisfied with the current level of the economic situation,” said He Zhenwei, chairman of the Association. China for Overseas Development. Business conducive to long-term cooperation, and allows you to develop a variety of fields.”
After the imposition of sanctions and the departure of Western companies, the Russian market was freed up by almost a quarter – this is a huge field for the activities of Chinese companies. However, according to experts, in order for cooperation with Chinese partners to reach a fundamentally new level, it is necessary to remove a number of obstacles.
“The development of our relations is hampered by the information barrier,” said Sergey Glazyev, member of the Board (Minister) of Integration and Macroeconomics of the Eurasian Economic Commission. “Of course, we are familiar with Chinese products, the Chinese market is open to Russian products, but the opportunities We do not have access to Chinese company databases, and Chinese companies are not yet very active in the market. use of the state information system in industry, which provides access to thousands of Russian companies.
Changes in the financial system could become a catalyst for bringing Russian-Chinese relations to a new level
Another catalyst for bringing Russian-Chinese relations to a new level could be changes in the financial system, experts say.
“The global financial system has practically collapsed, so today we have to build a new architecture of financial relations, noted Sergei Glazyev. We cannot use either the dollar or the euro. We have to switch to national currencies”.
The idea of ​​mutual settlements between Russia and China in national currencies is supported by many experts. Moreover, the ground for this already exists. So, in 2014, mutual swap lines (an agreement on the mutual exchange of currencies at fixed rates) in yuan and rubles operated between the Central Bank of the Russian Federation and the National Bank of China. Swap lines are used to finance foreign trade operations in national currencies. However, they have a limit of 150 billion yuan. Russian companies, which have significantly increased their trade with China, are increasingly settling their accounts with partners in yuan. The volume of Chinese currency trading on the Moscow Stock Exchange increased 40 times in 2022, reaching record highs. And according to the results of February 2023, the yuan for the first time became the most popular currency of exchange in Russia, traded with the expectation “tomorrow”. The volume of trade with the Chinese currency exceeded 1.48 trillion rubles. The yuan’s share of the total cash market turnover has reached almost 40%.
Interest in the Chinese currency is not only for the state and businesses – ordinary Russians see the yuan as an alternative to the dollar and the euro. Almost all the largest Russian banks offer their customers to open deposits in yuan, and there is no need to pay a commission, as, for example, to open a deposit in dollars or euros. The yuan calculations, experts say, will give additional incentive for Chinese companies to expand their presence in Russia and for Russian companies in China.
“We aim for equal and mutually beneficial cooperation with Russia,” said Gao Shixian, economic counselor at the Chinese Embassy in Russia. “Our economic relations have been productive for many years and we intend to continue to move in the same direction. Yes, foreign policy The climate is changing, but despite this, we are focused on mutually beneficial cooperation.”
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