Experts see huge economic potential between China and Russia

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There are a number of opportunities for Chinese and Russian businesses to boost their cross-border investments and deal flows, experts said.

One potential area is agriculture, according to Leonid Petukhov, CEO of Far East Investment & Export Agency. Research from Ernst & Young, a global accounting and advisory firm, showed that China has become the biggest investor in the Russian economy in 2017. China boosted its investment into Russia by 3.5 times last year, compared to the previous year.

Petukhov said that there are plenty of good projects in Russia for Chinese investors, adding that more Chinese investment pouring into Russia means “not only [do] we get high-standard technologies [into] Russia, but also [we] open opportunities for bilateral trade.”

Wheat kernels stand in a field during the summer wheat harvest on a farm in Novoalexandrovsk, Russia, on July 16, 2017. /VCG Photo

Andrey Yakunin, CEO of VIY Management, suggested Chinese investors to diversify investments in Russia. He is positive on deals in agriculture, tourism, real estate, retail and manufacturing. Particularly, he regarded the retail sector as the first area for Chinese investors coming into the country.

Meanwhile, from Yakunin’s perspective, it’s not just state-owned enterprises (SOEs) taking advantage from bilateral trade and investment, but various private investors are active in the China-Russia cross-border business.

Besides, Yakunin also highlighted the opportunities alongside the Belt and Road Initiative, saying that the initiative is a significant playground for both SOEs and private firms.

(CGTN’s Xia Cheng and Ming Tian also contributed to the story.)