INVESTMENT COOPERATION BETWEEN CHINA AND RUSSIA AT THE PRESENT STAGE

Abstract

In the article, in the context of investment cooperation between China and Russia, the priority areas of cooperation and the largest investment projects of the two countries are considered. A number of statistical data and research results are presented, indicating a high share of Chinese capital in the Russian economy in 2011-2018. Special attention is paid to the peculiarities and motives of investment, as well as the prospects of investment relations between Russia and China. The authors conclude that at present, despite the positive dynamics of foreign economic and foreign policy cooperation between the two countries, Russian-Chinese investment cooperation is characterized by a significant imbalance, instability and inconsistency of investment processes. China, unlike Russia, is a major investor in the Russian economy. The peculiarities of investment cooperation between Russia and China can also be attributed mainly to the intergovernmental nature of interaction, a strong institutional factor in the development of investment cooperation, the implementation of a significant part of Chinese direct investment through offshore jurisdictions, the investment of a significant share of Chinese investments in mineral resources, agriculture and forestry, as well as the tangible impact of political motives (for example, USA and European Union sanctions against Russia) on the economic sentiment of private Chinese investors. In addition, the specificity of the Chinese approach to investment in Russia is a long-term market research, in the conduct of long-term negotiation processes, which often end with a zero result. Nevertheless, the authors emphasize that the potential of investment cooperation between Russia and China is colossal, and in the current geopolitical situation it will increase.