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Libmonster ID: CN-30
Author(s) of the publication: Alexander Zyuzin, Oleg Litvinov and Vyacheslav Tomilin
Source: TASS, 02-24-99

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Russia and China will discuss ways to boost bilateral cooperation in the course of the four-day visit to Moscow by Premier of the Chinese State Council Zhu Rongji, which begins on Wednesday.

Zhu is due to meet with President Boris Yeltsin and hold talks with Premier Yevgeny Primakov within the framework of the fourth regular meeting between the heads of the Russian and Chinese governments.

"We hope that the upcoming meeting will give a powerful impulse to the development of trade and economic cooperation," Chinese Ambassador to Moscow Wu Tao told Itar-Tass on Tuesday.

Special attention will be given to new ways of interaction, capable of bringing two-way trade on a new level.

To this end, the parties are planning to discuss large oil and gas projects, including the development of fields in the Ukrutsk region, and the on-going construction of a nuclear power plant in eastern China.

Moscow and Beijing will also discuss such projects as Chinese investments in Moscow's economy, the establishment of free trade zones on the border and direct cooperation between provinces.

The parties are expected to discuss acute international problems, including the Kosovo and Iraqi issues, NATO's expansion and the sphere of operation of the Japanese-US military agreement.

In the course of the present visit, Moscow and Beijing intend to sign some 15 documents, including protocols on trade and economic cooperation in 1999 and protection of intellectual property, and a general agreement on feasibility study for building a pipeline from the Kovyktinskoye gas condensate field in the Russian Irkutsk region.

Four agreements are now in the works on inter-regional cooperation between Liaoning and Bashkiria, Jilin and the Maritime Territory, Shanghai and the Amur region and Xinjiang Uygur and the Altai territory.

An agreement is expected to be signed on China's purchase of trading space for two supermarkets in central Moscow. Other documents envision the establishment of a Chinese business center, the first in Russia, and joint production in Russia of televisions and air conditioners under Chinese technologies.

The Chinese premier is expected to meet with Russia's Federation Council speaker Yegor Stroyev. On February 26-27, Zhu Rongji will visit St.Petersburg.

The Russian-Chinese goods turnover remained at the 1997 level in 1998 and amounted to 6.13 billion dollars, sources at the Russian Trade Ministry told PRIME-TASS on Tuesday.

The overall cost of Russian exports was 4.01 billion dollars, while the import cost was 2.12 billions. Barter deals did not exceed 3.5 percent of the total amount of the bilateral trade.

Last year there was an increase in the Russian technological exports to China, and over 1.5 billion dollars worth of contracts were signed, the ministry experts said. Almost 25 percent of the overall Russian supplies were machinery and equipment, as against 6 percent in 1996.

Russian organizations render technical assistance in the design, construction and operation of 13 sites in China to a sum of about 3 billion dollars. The Russian technological assistance almost reached 30 million dollars last year.

The cooperation goes on in the construction of three power plants in China with a total capacity of 3,600 megawatt (the power plants of Jixian, Yimin and Suizhong), materials and equipment are supplied to the thermal power plant of Huangheng, the Jingan metallurgical plant, the Taiyuan rolling plant and the china workshop in Kunming. The largest project is the construction of the Liangyungang nuclear power plant.

A project aimed to develop the Kovyktinskoye gas condensate field in the Russian Irkutsk region is developing successfully, the ministry experts said. It is planned to supply to China no less than 10 billion cubic meters of gas a year within three decades. Another 10 billion cubic meters of gas will be annually supplied to South Korea via China.

One more promising project is the supply of West Siberian natural gas to China at an amount of 30 billion cubic meters a year. That question is being considered by the Russian Gazprom company and its Chinese partners.

Certain progress has been registered in a project to construct a power line for transporting electricity from the Irkutsk region to China. A gradual rapprochement of the sides on prices gives hope for compromises.

In 1998 seven Chinese leading producers of household appliances proposed to assembly that equipment in Russia. Replies have been given by some plants of Bashkortostan.

A total of 944 joint ventures involving the Russian capital are functioning in China. They produce spares, assembly cars, manufacture construction materials and chemicals and do public catering. The overall amount of Russian investments in the joint ventures is over 100 million dollars, which is 0.01 percent of all foreign investments on Chinese territory.

Over 1,000 joint ventures involving the Chinese capital work in Russia. Most of them trade in the border zone, and about 200 are producers.



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Alexander Zyuzin, Oleg Litvinov and Vyacheslav Tomilin, Russia, China, to discuss ways to boost cooperation // Beijing: Libmonster China (LIBMONSTER.CN). Updated: 19.09.2017. URL: (date of access: 10.12.2018).

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