Members of the Russian-Chinese Business Council called to boost trade and economic cooperation between Russia and China

A wide range of issues of Russian-Chinese trade and economic cooperation was discussed during the meeting of the co-chairs of the Business Council of the Far East and the Baikal region of Russia and the Northeast of the People's Republic of China (PRC).

China is Russia's major economic partner in the Far East. According to the Russian Ministry for the Far East Development, in 2021 the trade turnover between the Far East regions and China amounted to $13.8 billion and grew by 28.1% compared to 2020. Exports grew by 6.8% and amounted to almost $7 billion.

As it was announced by Nikolai Zapryagaev, the acting General Director of the Far East and Arctic Development Corporation, in the Far East and Arctic regions, there are over 3 thousand investment projects worth more than 6.8 trillion rubles (about 90 billion in dollar terms) are being implemented) using state support mechanisms (priority development areas, free port of Vladivostok, Arctic zone of the Russian Federation), of which about 30% have already been invested. A unique system of measures to support investors has been developed, boosting the projects economic attractiveness. The system includes such measures as preferential taxation, free infrastructure, provision of land and other preferences. A special economic zone is being developed on the Kuril Islands. The business conditions in this territory will be unique.

About 75% of investments in the Far East are into the advanced processing projects. Investors from China have been implementing 58 projects worth $13 billion, which is more than 14% of the foreign investment brought to the Far East. The key areas of Russian-Chinese cooperation are gas chemistry, tourism, agriculture, raw materials development and processing.

"The Far East accounts for about 10% of the total trade and economic turnover between Russia and China. With a view to expand the cooperation volume, we propose to hold a number of events with potential Russian exporters of the Far East and Chinese companies interested in purchasing products from both countries," said Daria Kiryanova, Deputy General Director of the Far East and Arctic Development Corporation.

Agriculture is one of the sectors where Russian-Chinese cooperation is developing most effectively. According to the co-chairman of the Chinese part of the Business Council, COFCO Corporation CEO Luan Zhicheng, in 2021, the total volume of trade and economic cooperation between Russia and China reached $146 billion. China is Russia's largest trade partner. In 2021, the agricultural products trade volume grew by 7%. Russia supplies to China include soybeans, corn, sunflower oil, poultry, beef, dairy products and seafood. And, according to Luan Zhicheng, premium quality products come from Russia. Grain export is one of the promising areas.

"Cooperation in the field of agriculture is one of the most promising on the bilateral agenda. Especially in the context of the recent agreements on opening the Chinese market for supplies of Russian grain from all regions, and opening our market for citrus fruit supplies from China," said Denis Nevzorov, Director of the Department for International Cooperation and Technological Development of the Russian Ministry for the Far East Development.

According to Vadim Moshkovich, the co-chairman of the Russian part of the Business Council, Chairman of the Rusagro Group Board of Directors, Russia can significantly increase the volume of soybeans produced within the period of 5-10 years. An increase in the supply of soybean and barley products under long-term contracts may become one of the areas for diversifying supply chains for China. At the same time, according to the Rusagro head, it seems promising to establish joint ventures that could produce, store, process products in Russia and supply advanced processing products to China.

The prospects of the innovative cooperation development were discussed, including those in the field of agriculture. As Vadim Moshkovich said, Russian agriculture is a leader in virtually all forms of innovations used in the production of vegetarian meat, various types of vegetable proteins, manufacture of new types of products, raw and other materials. "Automation has got in almost all the elements of production chains. Satellite and drone images are drastically changing the industry, providing the opportunity for faster and more effective detection of diseases, pests, weeds; the amount of pesticides used for treatment is reduced. We can claim to produce 100% green products with no pesticides," said the co-chairman of the Russian part of the Business Council.

According to the parties, the priority sectors for further expansion of cooperation, along with agriculture, are tourism, construction, high-tech, logistics, green energy - including hydrogen, aquaculture projects. In the context of the Russian-Chinese cooperation development, special attention should be paid to the development of trade, economic and investment cooperation between border regions, harmonization of customs procedures, reduction of customs clearance time, and logistics optimization. Issues related to labor quotas were discussed.

As a result of the meeting, an action plan will be worked out aimed at further development of Russian-Chinese trade and economic cooperation. In conclusion, the representatives of the Russian side invited the Chinese partners to participate in the Eastern Economic Forum (EEF), to be held in Vladivostok in September 2022.

Source: minvr.gov.ru
Image source: erdc.ru