Editor's note: The article is based on interviews with Duan Junze, a research assistant at the Institute of Russian Studies of the China Institutes of Contemporary International Relations. The article reflects the expert's opinion, and not necessarily the views of CGTN.
The plenary session of the fourth Eastern Economic Forum (EEF) was held in the Russian port city of Vladivostok on September 12. Chinese President Xi Jinping called for efforts to enhance mutual trust and strengthen the peace and stability in the Far East region. He also added that a stable and consolidated Northeast Asia is good for the entire world.
Duan Junze, a research assistant at the Institute of Russian Studies at the China Institutes of Contemporary International Relations, said China is willing to help Russia develop the Far East region's economy for the sake of mutual benefits.
After a lengthy recession, Russia's economic situation is looking up, Duan said. However, Moscow still has a long road ahead before achieving dramatic economic growth. In 2017, Russia's annual GDP growth rate was 1.5 percent, lagging behind the world's average growth rate of 3.2 percent.
Duan pointed out that a major factor restricting Russia's economic development is its reliance on exporting natural resources. In the first half of 2018, 63.9 percent of Russia's exports were natural resources, such as oil and natural gas, which can easily be negatively affected by the West.
Russia's President Vladimir Putin addresses the plenary session titled "The Far East: Expanding the Range of Possibilities" as part of the 2018 Eastern Economic Forum at the Far Eastern Federal University (FEFU) on Russky Island in Vladivostok on Sep 12,2018./VCG Photo
Duan said that with China's help, Russia can unlock the Far East region's potential. With abundant resources and a sparse population, the region has received more attention from Moscow over the past few years.
Moscow understands the important role the region can play in boosting the national economy. Although the Far East region is rich in resources, its industrial infrastructure lags behind developed countries such as the US and Japan. The region's sparse population has been one of the underlying factors contributing to its poverty level. Despite accounting for 36 percent of Russia's land mass, only 6.2 million people, or 5 percent of the country's population, live in the Far East.
The region's lack of capital and job opportunities have stifled development, as many young people have chosen to leave the Far East in search of work in major cities such as Moscow and St. Petersburg in western Russia.
The China-proposed Belt and Road Initiative opens up the region by providing labor and capital. It enables both sides to capitalize on their respective advantages: China's capital and labor force and Russia's resources.
Duan is optimistic about China-Russia cooperation in the Far East region. Russia's legislative support, increasing mutual trust and the global political climate amid increasing protectionism are all bringing Moscow and Beijing closer.
The “Far Eastern Hectare” program, announced by Russian President Vladimir Putin on May 1, 2016, gives every Russian citizen the right to receive up to 1 hectare of free land in the Far East. Duan views the program as a legislative guarantee of the region's development.
Weichai Power Chairman Tan Xuguang (L) and Sergei Kogogin, director general of Russian truckmaker KAMAZ, shake hands as they sign a cooperation agreement following Russian-Chinese talks on the sidelines of the 2018 Eastern Economic Forum in Vladivostok on Sep 11,2018./VCG Photo
Since 2013, frequent meetings between Xi and Putin on various occasions have cemented the friendship between the two countries. Duan pointed out that as the meetings between the two presidents become more frequent, the two countries' ties become closer, and intimate China-Russia ties are the foundation of their economic cooperation in the Far East region.
Apart from strengthening China-Russia relations, America's global trade bullying is a contributing factor to their willingness to develop the Far East. Russia's economic recession began in 2014 as a direct result of the economic sanctions imposed by the US, EU, and other countries due to the Ukrainian crisis.
At the moment, the sanctions still have a negative impact on Russia's economy and there is a diplomatic deadlock between Russia and the West. The US has always tried to limit Russia's oil exports in an attempt to strangle Russia's economy. Meanwhile, China is also suffering from the US-launched trade war.
The adverse global swing has caused losses; however, Duan believes it has created opportunities for China and Russia to deepen their cooperation and the Far East can serve as a bridge between the two sides. Given the improvement of China-Japan-South Korea ties, Duan is optimistic about the future of the Far East region, and firmly believes that China's involvement will provide more opportunities for Russia.
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