TRADE TIES: Government representatives from Ukraine's Odessa Oblast attend the 14th China International Fair for Investment and Trade in Xiamen, southeast China's Fujian Province, on September 8, 2010 (JIANG KEHONG)

China attaches great importance to its relations with Ukraine. It supports Ukraine's efforts to safeguard national independence, sovereignty and territorial integrity. It understands and respects Ukraine's choice of a development path as well as its domestic and foreign policies based on its national conditions. It supports Ukraine playing an active role in international and regional affairs. After Ukraine became a nuclear-free country, Chinese pledged to provide a security guarantee.

Ukraine adheres to the one-China principle, supports the Chinese Government's positions on Taiwan, human rights and other issues. It is willing to develop a strategic partnership with China and strengthen bilateral communication and coordination on major international and regional issues.

Ukrainian President Viktor Yanukovych said on many occasions that deepening relations with China conforms to Ukraine's national interests and is a priority of Ukraine's foreign policy.

Economic and trade cooperation is an important part of Sino-Ukrainian relations. It has served as an important factor that ensures the stable development of these relations. Over the past 19 years, the two countries' economic and trade relations have undergone a V-shaped process—one of growth, decline and recovery.

Despite the ups and downs, Ukraine has always been one of China's top trade partners among former Soviet republics. Currently, it is China's third largest trade partner in the Commonwealth of Independent States. Chinese statistics show bilateral trade reached $7.738 billion in 2010, up 33.8 percent over the previous year.

Thanks to the two meetings of the two countries' heads of state in 2010, China and Ukraine embraced unprecedented opportunities for the development of their economic and trade relations. The Ukrainian Government welcomed Chinese companies to invest in Ukraine. Large Chinese companies invested heavily in Ukraine, leading to improvements in the two countries' trade structure. But there remains potential for further cooperation in this regard.

Cultural exchanges are also an important area of cooperation between the two countries. Both China and Ukraine are countries with profound cultural heritage. It is the wishes of people in both countries to strengthen cultural exchanges and promote friendship.

Sino-Ukrainian cooperation in science, technology and education has also continued to deepen. An increasing number of Chinese universities are establishing cooperative ties with their Ukrainian counterparts, and their areas of cooperation have become more diversified. Exchanges of visits between scholars and art troupes have strengthened friendship between the two nations. In addition, the joint establishment of Confucius Institutes has promoted mutual understanding.

Another remarkable feature of Sino-Ukrainian ties is the increasing exchanges between the two countries at provincial and municipal levels—a facet of cooperation that has seen dramatic enhancement. Twenty-two Chinese cities and provinces have established sister city or province relationships with their Ukrainian counterparts, such as Beijing and Kiev, Tianjin and Kharkov, and Shandong Province and Kherson Oblast.

Future

Ukraine has a large market, sound agricultural and industrial foundations and sophisticated technology in a number of industries such as space, manufacturing and shipbuilding. In addition, it has huge reserves of natural resources and a high-quality labor force. All these advantages promise Chinese companies a bright future in Ukraine.

It is worth noting that the relatively stable political situation since Yanukovych became president in February 2010 has helped investors restore confidence in the country. But the investment environment cannot be perfected overnight. Risk management still poses a grave challenge to prospective investors.

China and Ukraine should strengthen political mutual trust and increase exchanges of high-level visits. As they cement political ties through communication and coordination between state leaders, legislative bodies and political parties, the two countries' economic relations will surely receive a boost.

In addition, they should bring existing intergovernmental cooperative mechanisms into full play, so as to expand and deepen practical cooperation in various fields. The two countries can conduct cooperation in many fields, including agriculture, infrastructure construction, light industry, aviation and space technology.

Both countries should intensify research into each other. China should educate more people who know Ukraine well, and Ukraine should educate more people who know China well. Currently, there are few experts on Ukraine in China. Also, Chinese companies know little about the investment environment in Ukraine. A good solution for companies who intend to invest in Ukraine would be to sponsor research in the investment environment and investment strategies in Ukraine.

The author is a research fellow with the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences