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China Turns to Russia as Most Important Trade and Political Ally

By Dezan Shira & Associates

The Chinese government has made statements concerning its view of the developing world, as China’s Ambassador to Russia, Li Hui, spoke on Wednesday (13th December 2017) at a government news conference organized in response to the results of the 19th Chinese Communist Party Congress in October.

The two countries – leading diplomatic and military rivals of the US – have been pursuing greater relations in past years as they both embark on initiatives to modernize their military and assume a more assertive role in international politics.
RELATED: China Close to Signing Free Trade Agreement with Eurasian Economic Union

In doing so, Ambassador Li placed greater emphasis on China’s relationship with Russia than with the US. “The Chinese-Russian relations of comprehensive strategic cooperation and partnership are the most important bilateral relations in the world and, moreover, the best relations between big countries,” Li told Russia’s Tass News Agency.

“One can say that they are a classic example of the healthiest and most mature interstate relations and an important force to protect peace and stability throughout the world,” Li added.

RELATED: China-Russia Bilateral Trade is World’s Fastest Growing Opportunity Corridor

One of the key reasons the diplomat cited as being responsible for Russia and China’s success was that they “abandon the thinking of the Cold War” and a “zero-sum game” policy. Both countries have frequently criticized the US for viewing the world in black and white, portraying Russia and China as enemies rather than partners in global affairs.

Chris Devonshire-Ellis of Dezan Shira & Associates states, “China and Russia share the same Eurasian landmass and have many common interests, as well as mutually beneficial supply and demand demographics. They are bound geographically and have many bilateral trade and investment interests, not least dealing with the Belt & Road Initiative to properly open up Eurasia. This is happening now with the establishment of institutions such as the Shanghai Co-Operation Organization, the Asian Infrastructure Investment Bank – Russia is the second largest shareholder – and China shortly about to enter into a free trade agreement with the Eurasian Economic Union. It is China and Russia who are changing the face of Eurasia, not the US or EU. This changing dynamic is one of the reasons our firm have invested in Russia and are active along the Silk Road trade corridor. These are, quite simply, the new markets to be in.”

 

About the Author

Dezan Shira & Associates provide professional services, legal, tax, and related issues to foreign investors throughout China and Russia. For further assistance please contact us at either china@dezshira.com or russia@dezshira.com or visit our practice at www.dezshira.com

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