11:25 GMT +319 May 2019
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    Harvesting wheat at the fields of the Lebyage-Chepiginskoe JSC in Timashevsky District, Krasnodar Territory

    China Puts Stake on Investments in Russian Agriculture Sector

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    Cooperation in the agricultural sector has come to the forefront of business relations between Russia and China and this trend will only grow stronger, the General Secretary of the Chinese Association for Development of Enterprises Abroad (CODA) He Zhenwei told Sputnik.

    In an interview with Sputnik, He Zhenwei explained why Russian products are appreciated in China and why Chinese businesses should invest into agricultural and food production in Russia.

    “Russia has two wealths bestowed upon it from above, its energy and agricultural land. However, if energy is not able to guarantee Russia a stable income in the long term due to price volatility and the gradual depletion of reserves, the land will always feed the people,” Zhenwei said.

    The general secretary further said that it is this huge arable area that could become its main asset, and basis for cooperation with China.

    “Russian products are in good demand in our country because they have a reputation for being environmentally friendly, so they are healthy,” Zhenwei said.

    “The Chinese middle class is increasingly looking for imported products on the shelves of markets, as they do not completely trust the quality of local produce. However, the main problem in China is the lack of farmland. The space available is not sufficient to feed the population of 1.3 billion people. Therefore, Russian production will be in demand in the Chinese market,” the general secretary said.

    According to Zhenwei, an increase in exports of Russian food to China will take place due to three factors: Chinese investment in the Russian food industry, creation of optimal production and supply chains in both the countries and recognition of Russian brands in China.

    These matters will be a key item on the agenda of the Russian-Chinese business forum, which will take place on October 21 in Beijing as part of the eighth China International Investment Fair.

    There will be a vast exhibition of Russian and Chinese food presented during the fair and representatives from over 20 regions of Russia will arrive to Beijing for the fair.

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