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Why Russian, Chinese Economies Have 'Large Potential to Complement Each Other'

© Sputnik / Sergey Guneev / Go to the photo bankVladimir Putin pays official visit to People's Republic of China
Vladimir Putin pays official visit to People's Republic of China - Sputnik International
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The economies of Russia and China could complement each other, Xiang Bing, a professor at the Beijing-based Cheung Kong Graduate School of Business, told Sputnik on the sidelines of the 2017 St. Petersburg International Economic Forum (SPIEF).

According to Xiang, Russian and Chinese businesses have a large potential for cooperation, but it is yet to be developed.

"Russia and China should widen their cooperation. Our economies have a large potential to complement each other. China is developing industrial production while Russia is rich in natural resources. Resources are the key source for trade," Xiang said.

Chinese 100 yuan notes. (File) - Sputnik International
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The expert underscored that China has a developed consumer goods industry and Russia has a developed heavy industrial base, and this factor is promising for economic complementarity between the two countries.

"The governments of Russia and China have already put much effort in this. But I think we should let Russian and Chinese companies deepen their cooperation because currently bilateral contacts are not that broad," Xiang noted.

The expert also highlighted other problems concerning Russia-Chinese economic cooperation. According to him, there are few large-scale projects and there is a lack in Chinese investments to Russia, especially by private companies.

"Investments come mostly from Chinese state-controlled companies. I hope private companies will be more active in the future. What is the current problem? Possibly, Russia is not open enough for foreign investments due to legal issues. The main destinations for Chinese investments are the United States and Europe. In terms of law and regulations, Russia is in a transitional stage, and investors do not want to take the risk due to this uncertainty," Xiang said.

May 15, 2017. Russian President Vladimir Putin and Chinese President Xi Jinping, right, during a group photo session for the participants in a roundtable summit held as part of the Belt and Road Forum, in front of the Yanqi Lake International Convention Center. - Sputnik International
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According to him, the problem could be resolved through intensifying contacts and communications between Russian and Chinese businesses.

The expert noted that the forum in St. Petersburg, as well as the Eastern Economic Forum (EEF) in Vladivostok, could be very helpful to overcome the current difficulties.

The SPIEF is a major global platform for business representatives where crucial economic issues are discussed. The 21st annual forum kicked off on Thursday and will run for three days. The total number of participants, comprising foreign ministers, entrepreneurs and representatives of various international organizations, is estimated at over 5,000.

Beijing said it will be represented at the forum by a high-level delegation of businessmen and officials.

 

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