Recommendation
Historically settled links between two giant leaders can resist the spreading western expansion along with inequality impact that the majority of emerging economies suffer from the developed world. The observed global instability and geopolitical suspense make all countries think about the diversification their foreign relations as well as search new economic partners and market niches. Thus, the recommendation paper concerning the Chinese-Russian international relations is targeted at investment companies, looking for new infrastructure projects and other investment directions; multinational companies, interested in exploring new market areas; as well as at small and medium enterprises, entering the market and facing lack of support and financing for further sustainable development.
Key Factors
Historically, China and the USSR were competing for settling and controlling the worldwide communist movement. Close and friendly relations arose after the USSR collapse. Later in 2001 the Treaty of Good-Neighborliness and Friendly Cooperation Between two countries gave a birth of a long-term strategic international relations in key directions – economic and military cooperation.
The fundamental base of the fruitful relations between China and Russia is settled on key factors – history, geographical location, trade relations, military cooperation, science and technology cooperation and international associations.
China and Russia have one of the world’s largest international boarders measured in over 4000 km. The long border provides easy access to trade and employment in both countries.
International trade as a factor of Chinese-Russian international development is focused on oil products, crude oil, and coal, coming from Russia, while China exports to Russia cars and equipment, chemical goods, footwear and textile clothes.
The military is also one of the basic factors of international development between Russia and China because China is interested in Russian military products, training and technologies. Though it keeps developing the domestic military manufacturing, China remains a key purchaser of Russian military equipment. Meanwhile, Russia is interested in attracting foreign investment for internal infrastructure projects as well as in new sources of employment for the skilled workforce in the military sector.
At present a key factor of international cooperation is an international association of BRICS (Brasil, Russia, India, China, South Africa) and Shanghai Cooperation Organization (SCO), which includes China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. The main purpose of those negotiations is sustainable development of economic and military relations between its members and providing help to emerging economies suppers from western expansion.
Options
Russian multinational companies producing oil products, military equipment continue providing China with their products on the basis of licence agreements and technology exchange, as Russia faces a lack of scientific development and needs new researches and technologies for developing its key areas.
Governments could provide financial, consulting and administrative support for small and medium enterprises entering the world market, and those, who already act in China-Russia direction and performs in key areas – science and technology, IT, biotechnologies, engineering.
The development of China-Russia international relations could help to diversify the economic links in both economies and to avoid the damaging impact of western influence in global decisions (sanctions, oil prices, interest rate changes, currency exchange rates volatility). With the support of the Bank of BRICS that was recently established, developing countries can receive support for realizing infrastructure projects, that will provide more jobs, income and recourses for further development without obligations to follow the recommendations of international institutes.
Potential Obstacles
First of all, there are different business approaches in Russia and China. The Chinese are focused on the pragmatic, long-term relations while Russian businessmen and officials prefer short-term planning and fast and maximum benefit. Second obstacle is the lack of complementary nature in formal procedures like taxation, financing and government procedures, complicated with corruption and burocracy in both countries. Also, close trade and military relations create a strong financial dependence of the recipient. Russian business is afraid of possible interactions of Chinese decisions into its performing. Also military cooperation can be a threat to national security, because providing China with equipment Russia has to share its scientific and professional secrets, that can damage the national security. Foreign policy contradictions also exist. While the countries are both competing for areas of power in Asia and the rest developing world that, perhaps, can create a suspense between them.
Potential Opportunities
The prior directions of international cooperation between Russia and China at present include hi-tech segments along with energy-efficiency, information and nuclear technologies, industrial and medical lasers, biotechnologies, genetic engineering and other perspective projects. In military and technical cooperation, China actively invests in purchases of the Russian arms and military equipment. Chinese government is also targeted as developing its domestic military manufacturing using Russian technologies and skilled workforce, that provides a basis for scientific cooperation. China also intends investing joint space projects in cooperation with Russia.
Conclusion
Thus, the deterioration of the relations of Russia with the West has strengthened its Asian direction, first of all in the Chinese direction. Chinese interest is caused by the need of infrastructure development, military manufacturing and enhancing its global power. Russia faces a lack of political and economic partners for the attraction of financial resources after destroying relations with the West. These circumstances become a catalyzing ingridient in cooperation of two governments. Such interaction provides opportunities for investment companies, multinational companies and small and medium enterprises to get new directions and to enhance excisting capacity. Civilization differences have a significant impact on the nature of the relationship. The history of relations between Russia and China, both political and economic are complex and contradictory. However, as present it has much more chances for sustainable development contributing both sides. With its large potential the cooperation between China and Russia will impact on the rapidly changing system of the international relations as these two countries can act as locomotives of formation, development and existence of a multipolar world order with new global actors.
