China-Russia relations are an example of cooperation between countries based on joint responsibility for peaceful and harmonious global development.

On May 8, 2015, the presidents of the two countries signed a joint declaration in Moscow, agreeing "on cooperation in coordinating the development of the Eurasian Economic Union (EEU) project and the Silk Road Economic Belt," with the goal of building a "common economic space" in Eurasia, which would include a free trade agreement between the EEU and China.

The EEU is a trade bloc of five northern Eurasian countries, Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. The Silk Road Economic Belt is the overland component of the Belt and Road Initiative proposed by China in 2013, which also includes the 21st-Century Maritime Silk Road, and is engaged in building infrastructure, trade and people-to-people links between Asia, Europe and Africa.

The joint initiative of Russian President Vladimir Putin and Chinese President Xi Jinping regarding the interconnection of the EEU and the Belt and Road Initiative is clear evidence of the willingness to overcome obstacles to maximize harmonization in all spheres of China-Russia relations, increase trade, economic and investment turnovers, and establish long-term intercultural dialogue.

Complementary cooperation

China and Russia have made significant progress in bilateral trade in recent years. Their cross-border infrastructure cooperation is developing and transport channels are expanding. Exchange of specialists and technologies is becoming more intensive and bilateral multidisciplinary interaction is increasing. Both countries are working together to build transcontinental transport corridors, modernize existing railways and highways and construct new ones.

Flagship projects include the China-Mongolia-Russia economic corridor, which will connect the Silk Road Economic Belt to Russia's transcontinental rail and Mongolia's Prairie Road development program, and the Western China-Western Europe Highway which passes directly through Russia to connect China and Central Asia to Europe.

The integration of rail, road and aviation infrastructure in Eurasia is a key area of joint work to connect the EEU and the Belt and Road Initiative. To implement cooperation, more work is needed in the following areas:

Eliminating bilateral trade barriers: The goal to bring China-Russia trade volume to $100 billion was achieved last year. To ensure further growth in this area, both countries need additional efforts to standardize technical regulations, sanitary and veterinary control, and expand production cooperation between enterprises.

Strengthening cooperation on settlement and payment in national currencies and aligning each other's payment systems: China and Russia have their own payment systems for foreign participation. The commercial banks of the EEU and China can use these systems to make payments in mutual trade and joint investment operations. Companies and individuals could make greater use of the mobile payment systems available in both countries.

Establishing specialized banks and other financial development institutions in national currencies for mutual trade and joint investment lending: Russian businesses were enthusiastic about Xi's announcement of the creation of a 100-billion-yuan ($15-billion) China-Russia Investment Fund for Regional Development at the Eastern Economic Forum last year.

Such bilateral development institutions can support rapid expansion of investment cooperation in all sectors of the economy including capital-intensive and hi-tech projects.

The most significant investment projects for the EEU and the Belt and Road Initiative should be financed jointly with the involvement of international development institutions including the Asian Infrastructure Investment Bank, the New Development Bank and the Eurasian Development Bank.

Enhancing cultural and humanitarian cooperation in multiple fields: The two countries, which share a common historical destiny, must strengthen mutual understanding and trust and open the treasures of their national spiritual culture to each other. For example, China and Russia have already carried out in-depth think tank cooperation.

In July 2018, a joint report by Chinese and Russian think tanks titled Sino-Russian Economic Cooperation Assessment and Prospect: Shared Opinions was released. It involved the Russian presidential consultant team consisting of professionals in economics, finance, politics, regional geography and culture, led by me, and experts from the Chongyang Institute for Financial Studies at Renmin University of China, one of China's first think tanks studying the Belt and Road Initiative.

The report proposed that the two countries optimize the business environment and create better conditions for bilateral economic cooperation.

We need a deep civilizational China-Russia dialogue. It is necessary to bring together intellectuals of China and Russia who understand that the valuable interconnection of our civilizations and cultures is the foundation of the long-term China-Russia relationship.

Belt and Road Progress Since Initiation 

A broad consensus has been reached. Its core concepts have been written into documents from the United Nations, G20 and APEC. By the end of March, China had signed 173 cooperation agreements with 125 countries and 29 international organizations.

Infrastructure connectivity has been enhanced. Six major economic corridors connect the Asian and European economic circles. The number of China-Europe freight trains surpassed 14,000 by March.

Unimpeded trade has been promoted. A network of free trade areas has taken shape, with trade in goods between China and other Belt and Road countries reaching $1.3 trillion in 2018, up 16.4 percent year on year.

Financial integration has been strengthened. Financing programs jointly launched by the People's Bank of China and multilateral development institutions has topped 100 and covers over 70 countries and regions. Chinese banks have briskly set up overseas branches, and renminbi payment systems have expanded.

People-to-people ties have become closer. Fruitful results have been achieved in education, tourism and visa exemption, health and medicine, and poverty reduction.

New growth drivers have been built. From 2013 to 2018, China's direct investment in the areas surpassed $90 billion, and the turnover of contracted projects topped $400 billion. It has signed agreements on industrial cooperation with more than 40 countries, including Kazakhstan and Brazil.

(Compiled by Beijing Review based on a report titled The Belt and Road Initiative: Progress, Contributions and Prospects released by the Office of the Leading Group for Promoting the Belt and Road Initiative on April 22) 

The author is an advisor to the president of Russia and an academician with the Russian Academy of Sciences

This is an edited excerpt of a story first published by China Pictorial

Copyedited by Sudeshna Sarkar

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