China Turns to Russia as Most Important Trade and Political Ally
The Chinese government has made statements concerning its view of the developing world, as China’s Ambassador to Russia, Li Hui, spoke on Wednesday at a government news conference organized in response to the results of the 19th Chinese Communist Party Congress in October.
The two countries – leading diplomatic and military rivals of the US – have been pursuing greater relations in past years as they both embark on initiatives to modernize their military and assume a more assertive role in international politics.
In doing so, Ambassador Li placed greater emphasis on China’s relationship with Russia than with the US. “The Chinese-Russian relations of comprehensive strategic cooperation and partnership are the most important bilateral relations in the world and, moreover, the best relations between big countries,” Li told Russia’s Tass News Agency.
“One can say that they are a classic example of the healthiest and most mature interstate relations and an important force to protect peace and stability throughout the world,” Li added.
One of the key reasons the diplomat cited as being responsible for Russia and China’s success was that they “abandon the thinking of the Cold War” and a “zero-sum game” policy. Both countries have frequently criticized the US for viewing the world in black and white, portraying Russia and China as enemies rather than partners in global affairs.
Chris Devonshire-Ellis of Dezan Shira & Associates states, “China and Russia share the same Eurasian landmass and have many common interests, as well as mutually beneficial supply and demand demographics. They are bound geographically and have many bilateral trade and investment interests, not least dealing with the Belt & Road Initiative to properly open up Eurasia. This is happening now with the establishment of institutions such as the Shanghai Co-Operation Organization, the Asian Infrastructure Investment Bank – Russia is the second largest shareholder – and China shortly about to enter into a free trade agreement with the Eurasian Economic Union. It is China and Russia who are changing the face of Eurasia, not the US or EU. This changing dynamic is one of the reasons our firm have invested in Russia and are active along the Silk Road trade corridor. These are, quite simply, the new markets to be in.”
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Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
Both China and Russia have proposed to establish a free trade area between members of the Chinese and Russian-led Shanghai Cooperation Organization (SCO). The proposal also called for the expedited establishment of an SCO development bank, which would provide funding for regional projects together with other multilateral funds and development banks.
In the aftermath of the United States pulling out of the planned Trans-Pacific Partnership (TPP) agreement, Russian President Vladimir Putin said this week that Moscow supports the idea of setting up a free trade area in Asia and the Pacific.
On November 29, 2017, Chris Devonshire-Ellis, the founder and chairman of Dezan Shira & Associates, gave a lecture at the National Research University-Higher School of Economics (HSE) in St. Petersburg, Russia. The lecture was given to master’s students in the “Business and Politics in Modern Asia” program, and addressed China’s One Belt, One Road (OBOR) initiative and its opportunities for Russian businesses.