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Better policy frame to boost investment in Russia

Xinhua | Updated: 2013-04-17 10:17

BEIJING - Senior Russian officials and industry representatives led by Russian First Deputy Prime Minister Igor Shuvalov held an investment promotion conference on Monday, marking a renewed period of opportunity for China-Russia bilateral trade and cooperation.

Analysts said the Chinese government should stay in close communication with their Russian counterpart to improve the current policy mechanism, making practical efforts to expand investment in Russia while optimizing the structure of its investment.

Turning political trust into economic fruit

China and Russia have both attached great importance to developing bilateral ties.

Russian President Vladimir Putin made a state visit to China just one month after taking office in May 2012. In March, Chinese President Xi Jinping made Russia the first stop on his first foreign tour following his inauguration.

During Xi's visit to Russia, the two countries agreed to deepen comprehensive strategic cooperation, vowing to turn their "unprecedented" high-level political relationship into pragmatic fruits in the economic and cultural fields, according to a joint statement.

Li Yongquan, a Russia scholar with the Chinese Academy of Social Sciences, said Russia has gradually realized that the so-called "China threat theory" is detrimental to China's development and Russia's own development, as well as an impairment to regional peace and stability.

Li said the two sides have now deemed strengthening bilateral ties a strategic opportunity. Such high-level political trust will undoubtedly create an opportunity for the business communities as well, the scholar said.

At Monday's conference, Chinese Commerce Minister Gao Hucheng said deepening pragmatic cooperation will be the central task for developing the China-Russia bilateral relationship for a period of time, with cooperation in investment a priority.

Mutual trust needed for business circles

Economic cooperation between China and Russia - notably China's investment in Russia - has been gaining steam in recent years.

Chinese official data show that China's total investment in Russia approaches $30 billion, with non-financial investment up by an average rate of 40 percent each year over the past decade.

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