China and Russia have made fruitful achievements in their all-round cooperation during the past 10 years since they established their strategic and cooperative partnership. In an interview with Beijing Review, Liu Guchang, China's Ambassador to Russia, recounted the development of the Sino-Russian ties over the past years and pointed out the direction that their bilateral relationship would take.

Beijing Review: The years 2006 and 2007 were an important period in the history of Sino-Russian relations, because the "Culture Year" programs, including "China Year in Russia" and "Russia Year in China," were successful. What are your insights as the organizer of these projects?

Liu Guchang: There were altogether more than 500 activities related to the "China Year in Russia" and "Russia Year in China" projects. These activities had created records in the history of our bilateral relationship due to their unprecedented level, contents, ranges, number of participants in the activities and sound responses from people in the two countries.

As China's ambassador to Russia, I was honored to participate in all the important activities of the "Culture Year," and these were warm experiences that I will never forget for the rest of my life. I was greatly moved by the friendliness, warmness and sincerity of the Russian people.

Although the "Culture Year" programs have ended, they will continue to push the bilateral relationship between China and Russia forward and improve our understanding of each other for a long time to come. I sense that more and more Chinese and Russian people have realized that the development of one is an opportunity for the other. They are looking forward to the further development of bilateral cooperation, because such cooperation has brought them actual profits. Besides, their interests in the other country's culture have been enhanced.

Moreover, people in these two countries firmly support their closer cooperation on international affairs, believing that the strategic cooperation is an important support mechanism to maintain the world's strategic balance and promote world peace and development.

Have there been any other communicative mechanisms between China and Russia besides the summit meeting mechanism during the past 10 years?

The Strategic and Cooperative Partnership is very fruitful. Political mutual trust is strengthened, practical cooperation is deepened, personnel and cultural communication is expanded, and regional cooperation is greatly enhanced. The Sino-Russian relationship has entered a new phase of development with intensified strategic cooperation. The accelerated development of bilateral ties can be attributed to the foresight and wise decisions of the countries' top leaders, the people's strong support and active participation, and the multi-level bilateral cooperative and communicative mechanisms.

These mechanisms now cover politics, trade and economy, the military, security, energy, banking, transportation, space and aviation, education, science and technology, culture, sanitation, the media, sports and environmental protection. The two sides have held regular meetings to conclude the work they have done and blueprint the tasks for the next phases. In this way, problems can be settled in time during their cooperation, and bilateral cooperation in various fields can be greatly promoted.

The "Culture Year" programs created new forms of bilateral communication and established a new platform for the two countries. China and Russia have decided that they will continue the effective and popular activities of the "Culture Year," and they have reached common understanding on mechanizing activities in cultural areas. From 2008 on, the two countries will take turns holding programs such as cultural weeks, educational cooperation weeks, communication weeks on films and dialogues among college students. In 2009 and 2010, they will hold the "Year of Chinese Language" in Russia and "Year of Russian Language" in China.

Russia has been a favorite investment destination for Chinese enterprises. But some investors from China complain about the investment environment in Russia. What is your response?

Investment cooperation is one of the important parts of Sino-Russian trade and economic cooperation. It has developed rapidly in recent years with an expanded range. By the end of 2007, the total investment volume from both sides had reached $1.6 billion, among which $1.03 billion was from the Chinese side and $650 million was from the Russian side. In the past three years, the investment volume from China has grown at an annual average rate of 100 percent. The investment projects mainly concern energy, mineral resource exploitation, infrastructure investment, telecommunications equipment and processed lumber. The investment not only brought good economic profit to the enterprises themselves, but also contributed to Russia's socioeconomic development and promoted bilateral cooperation.

As a big country with ample natural resources, Russia affords a large market for investors. Besides, the country has seen stable social conditions and rapid economic development in recent years. China and Russia have established investment cooperation working groups and mechanisms to promote bilateral investment. Their governments also have signed a mutual investment protection agreement to cement a strong base for accelerating investment cooperation in both countries. China keeps on encouraging and supporting its own enterprises, which are economically strong and have good business credit, to invest in Russia. It also creates the necessary conditions for reaching the goal of a total investment of $12 billion in Russia by 2020. Russian leaders iterate that Chinese investment in the processing and producing industries is greatly welcomed, and they are offering important opportunities for the Chinese to increase their investments.

In the meantime, Russia's economy is still in the midst of an economic transformation, and the country is trying to perfect its legislative structures and management policies as well as enhance the service levels of its financing, insurance and information sectors.

Chinese investors should watch the future development of Russia, and seize their opportunities in time. However, they also should do their homework and investigate the market and government policies, position their own enterprises and prepare for possible risks in the future. Chinese enterprises insist on the principle of equal, mutual benefits and a win-win strategy through cooperation. They also should stick to scientific decisions and management methods.

More and more people in China and Russia are becoming interested in each other's civilization. How can young people from both sides appreciate and understand the different cultures?

The "Culture Year" activities fully displayed the magnificent civilizations, ancient and modern, from every angle of the two countries, and practically deepened the friendship between the two countries. "China fever" and "Russia fever" have been rapidly warming up.

With the changed situation and improved social development, both countries should pay more attention to the following aspects: First, they should continue to seek and inherit the essence of the traditional civilizations of both countries, so as to create modern cultures that help people to better understand and appreciate each other. Second, they should strengthen communication between the two peoples, especially among youths. Efficient and popular programs like the "Culture Year" will be held to cement the friendship between the two countries and lay a firm social foundation for the healthy development of bilateral relations. Third, communication and cooperation between the media of the two countries should be strengthened, because the media has a natural advantage in introducing the other country's social development and cultural life to their own people.

China and Russia have achieved good experience through "Culture Year" activities. Can we expect more surprises during their bilateral communication in 2008?

The Sino-Russian Strategic and Cooperative Partnership has reached its highest level in history after 10 years of development. Now the "Culture Year" program has pushed the bilateral relationship to an even higher phase. In March 2007, Chinese President Hu Jintao and Russian President Vladimir Putin together suggested that the two countries should become sincere political partners in mutual trust, economic and trade partners with mutual benefits based on a win-win situation, partners in scientific cooperation aimed at innovation, harmonious and friendly partners in humanistic cooperation, and partners that help each other in security cooperation. The two presidents also blueprinted their strategic partnership for cooperation, upgraded their bilateral ties and pushed for the partnership's sound and steady development over the next decade.

In 2008, the two sides should actively carry out the common understanding that has been agreed upon by their presidents and continue to push forward their bilateral ties.

First, the summit meeting and consultation mechanisms in various fields should be fully implemented, so as to improve political mutual trust and strengthen the countries' support for each other's efforts to maintain their key interests.

Second, the two countries need to step up their potential for cooperating on various issues in an attempt to optimize their trade structures, expand their range of trade, perfect trade laws and stipulations, expand the scale of investment, encourage cooperation on major programs and enhance the quality of their practical cooperation.

Third, China and Russia should conduct all-round scientific and technological cooperation, confirm the priority of the key programs, improve the industrialization of existing scientific and technological achievements and quicken the pace of developing technology.

Fourth, the two countries need to carry forward the concept of "friendship for generations" in their own countries, as well as deepen mutual trust, friendship and understanding among their peoples. In this way, they can develop communication at the grassroots level and regional cooperation.

Fifth, the two sides should strengthen their strategic cooperation to effectively cope with new threats and challenges and maintain their common interests. They can further contribute to establishing a stable, peaceful and developed world in harmony.