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By Chloe Saunders
As part of his two day trade trip in Beijing, Russian Prime minister Dmitry Medvedev met China’s President Xi Jinping and Premier Li Keqiang on 22nd October to sign 21 new trade deals. According to economic analysts the meeting has further strengthened economic ties between China and Russia.
Chinese-Russian relations have reached new heights thanks to a huge boost in business co-operation. “While trade reached a record high of $88bn (£54bn) in 2012, the two countries plan to raise the volume to $100bn by 2015 and $200bn by 2020,” reports Xinhua news agency. It is believed that in the first seven months of this year, direct foreign investment by Chinese companies in Russia rose by a staggering $250m. These figures were published shortly after Russia agreed to supply an additional 10 million tons of crude oil to China each year over the next decade. Xing Guangcheng, a researcher of Russian studies at the Chinese Academy of Social Sciences believes “oil and gas imports from Russia should be China’s first choice as Russia is a major energy exporter and is closer to China”. It is believed in the next 25 years, Russian oil exports to China will exceed 700 million tons.
The deals also included a $20 billion investment into Russian domestic projects concentrating on transport infrastructure; highways, ports, and airports. China hopes to increase investment in Russia four-fold by 2020. In the same year trade turnover between the two countries is expected to reach $100 billion.
“The collaboration in the energy field is key to bilateral cooperation. I hope the deals we signed today can be implemented in an orderly way and those deals that are still under negotiation, such as natural gas deals, can reach an agreement very soon,” Medvedev said in Beijing.
This has been a successful trip for Medvedev. While European demand remains sluggish and America champions self-sufficiency, Russia, holder of the world’s biggest natural gas reserves, has been looking to China as a key energy market. The recent deal demonstrates Russia and China’s increasingly close relationship which is only getting stronger and will no doubt worry the likes of Obama and Cameron.
The UoB Linguist Magazine
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