BRICS International] China and Russia have signed another “big order” of more than 50 billion rubles!

Recently, the government of the Irkutsk region of Russia led a team of companies to Beijing to sign 11 more investment agreements with China, including investment and foreign trade documents worth more than 50 billion rubles. The agreements cover tourism, agriculture, industry, and education.
Scholars also once again reminded that the rapid warming of bilateral trade is still shrouded in some of the “haze”, such as the scale of investment is still limited, trade settlement issues, there is a “financial traffic jam” and so on.

5 Foreign trade contracts worth nearly 2 billion rubles billion rubles

The press service of the Irkutsk Oblast government said on June 16 that the Irkutsk Oblast and China signed 11 cooperation agreements in Beijing, including investment and foreign trade documents worth more than 50 billion rubles.
The promotion of investment and economic potential of the Irkutsk Region was held in Beijing, where members of the government headed by Irkutsk Region Governor Igor Kobzev and representatives of 35 enterprises of the region arrived. Earlier, they held negotiations with more than 200 Chinese organizations, business associations and federations.
The message reads, “Irkutsk Oblast organizations signed agreements and export contracts with Chinese partners in the fields of tourism, agriculture, industry, and education, a total of 11 cooperation documents, three investment documents totaling 50 billion rubles, and five foreign trade contracts worth nearly 2 billion rubles.”
The largest number of agreements were signed in the industrial and agricultural sectors, including an agreement on the construction of a metallurgical plant in Bratsk, an agreement on the localization of furniture producers in the Irkutsk Oblast, an agreement of intent on the construction of poultry farms in the region, and the supply of rapeseed, barley, foodstuffs, dietary supplements and high-precision bearings from the Irkutsk Oblast to China.
In addition, cooperation agreements in tourism and educational services were signed during the visit, including between Baikal State University and the University of International Business and Economics in Beijing. Since 2015, the two universities have been partners and are implementing a dual-degree program in the fields of management, economics and trade.
On June 14-15, a delegation from the Irkutsk Region of Russia held a symposium with Beijing’s Pinggu District and went to Pinggu District for research and study. Di Tao, deputy secretary of the Pinggu District Committee and mayor of Pinggu District, said that the two places are rich in industrial resources, the direction of development is highly compatible, and the space for cooperation is broad, and hoped that, relying on the China-European liner, agricultural Zhongguancun, etc., and giving full play to the advantages of the resources of Baikal Lake and Jinhai Lake, the two sides will deepen their exchanges and cooperation in the fields of economy, trade, agriculture and leisure, culture and tourism, and will push the two sides to establish a friendly exchange of city relations.
In the next few days the Irkutsk Oblast delegation will stop in Shenyang, Liaoning Province, where it will also introduce the economy and investment potential of Irkutsk Oblast and organize a series of business activities.

Russia and China have launched about 3000 investment projects

Over the past three years, Russia and China have launched about 3,000 investment projects, Russian media recently quoted Sulana Radnaeva, General Director of the Sinoruss legal consulting company, as saying.
Radnaeva pointed out that there are differences in the size of these projects and the amount of investment, the most important of which are under the authority of the Russian-Chinese Intergovernmental Commission on Investment Cooperation, which was established in 2014.
“So far, the Russian-Chinese Intergovernmental Commission for Investment Cooperation is implementing 83 projects in 24 Russian regions and five Chinese regions, with a total investment of about $200 billion.”
Most of the projects are being implemented, Radnaeva said. Since the establishment of the Russian-Chinese Intergovernmental Commission for Investment Cooperation, 15 projects have been fully implemented. in 2022 and 2023, 10 new projects have been added.
According to the report, Russian-Chinese investment projects are mainly focused on mining and chemicals, agriculture, infrastructure and industry.
The analysis noted the existence of a range of support measures for projects implemented within Russia, such as import support programs, tax incentives or special conditions programs, preferential loan programs for projects in priority sectors, and over-the-top development zones. She noted that specific support measures include subsidies for signed agreements, tariff exemptions for imported equipment, and preferential financing.

“ Some gloom still hangs over bilateral trade “

Rapidly warming Sino-Russian bilateral trade is also shrouded in some haze, such as the scale of investment is still limited, trade settlement problems, there is a “financial traffic jam” and so on.
NPC Chongyang think tank released a report “create a new channel – China and Russia two-way investment status quo, challenges and recommendations” that, although before the Ukraine crisis, China and Russia trade has been growing steadily. However, in terms of investment scale, China-Russia bilateral investment is very limited.
The report points out that the scale of China’s direct investment flows to Russia has shown a slow downward trend in recent years.In 2017, Russia was also the 12th beneficiary of China’s investment scale, but the ranking has gradually declined since 2018, and it has not been able to enter the top 20. Specifically, in 2015, the scale of China’s direct investment flow to Russia reached a peak at US$2.961 billion. in 2019 and 2021, the scale of China’s direct investment flow to Russia is negative, and there is an outflow of investment. in 2022, China’s direct investment stock in Russia accounts for about 0.36% of the total outward foreign direct investment stock.
In addition, according to Chen Zhigang, president of Russia-China Business Park and chairman of Russia-China “Belt and Road” Strategy Development Research Institute, trade settlement is a kind of financial traffic jam, which is more troublesome and terrible than the previous logistics traffic jam, after all, trade settlement is the basis of trade blood circulation. And China-Russia trade intensity is relatively large, this traffic jam will certainly affect the trade volume between China and Russia this year; the impact on investment is even greater, will lead to China’s goods can not be sold, money can not be invested in, the Russian side wants to pay back the money can not be remittance.
In addition, there are also engaged in Sino-Russian investment research industry insiders said that in the development of the market, they noted that some of China’s leading enterprises and listed companies encountered foreign malicious arrears of payment, it is recommended that enterprises in the signing of the contract of cooperation, we must consult the experts in the relevant fields, as far as possible to adopt the China Export and Credit Insurance Corporation’s trade insurance services.