Russian-Chinese Economic Relations: Current Situation

The article shows the contents of economic interaction of Russia and China, the dynamics and problems of economic relationship in trade and investment, and the problems of realization of joint projects. In 2017, the Russian-Chinese trade increased significantly by 20.8% (to 84 billion USD). China is the main trade partner of Russia, while Russia is the tenth largest trading partner of the PRC. The positive dynamics of external trade was affected by the growth of prices in raw materials market, recovery of the Russian economy, followed by strengthening of the ruble and growth of consumer activity, and the stable economic growth in the PRC. The main categories of Russian export to China are mineral fuel, oil and petroleum products, wood and wood products, agricultural commodities and food. The most imported group of goods from China is ‘machinery, equipment and transport’. The increase of Russian export was held back by the lack of knowledge on how to supply goods to the international market, insufficient support in finding foreign partners, product certification and intellectual property protection. In 2017, both countries moved from realizing large projects to ‘routine’ interactions. The total number of investment projects by Russian companies in China increased to 211. The volume of Russian direct investments to PRC remains insignificant. Chinese investments in Russian economy increased. The largest share of Chinese investments was mainly aimed at resource projects. The 200 billion USD in trade turnover between Russia and China can be achieved by 2020 if the stable rates of economic growth in both countries persist and limitations on Russian goods entering Chinese markets are removed. It is important to diversify trade nomenclature, develop transport and logistic infrastructure of both countries