Russia and China Conversion Trade Role

Trade between Russia and China had the role of conversion, the Russian exports to China have to weapons, cars and machine tools mainly exports raw materials to China now, and from China to buy manufactured goods.

But Russia sold to China, the number of vehicles and weapons have dropped significantly.

Weaver, an economist working in Moscow (Chris Weafer) that Russia is unwilling to be seen as the factory of the world’s raw materials suppliers.

He said: “Russian President Dmitry Medvedev and Russia want more discussion on China’s modernization and energy industries to outside investment in Russia. But the negotiations began, the Chinese just want to talk about how to obtain more energy.”

The only signed a manufacturing contract to a Chinese company agreed to truck the Ural region to help the manufacturing sector.

Interest in the Chinese on energy imports

Although China has no interest in helping Russia to improve processing quality, but for oil, natural gas and electricity imports of Russian energy products, a great appetite seems insatiable.

China currently depends on imports of most oil and gas tankers through the Malacca Strait this choke delivery. To make up for weaknesses in this strategy, China hopes to develop channels of energy imports by land.

Chinese and Russian heads of the end of September symbolically launched the Russia’s first oil pipeline to China. Starting from next January, the Russian Siberian crude oil to pass the total length of 1,000 kilometers of pipeline transport to the northeast of China.

China also hoped that the laying of a gas pipeline in another. The two sides plan to sign an agreement next summer, but the two sides around the negotiation of prices has dragged on for decades.

Unable to agree on the price

Australian analyst Shi Bobo Lo for this purpose have been studied, and published book, “to facilitate the axis: Moscow, Beijing and the new geo-politics.”

Lo said: “People will say, Why do not is because the price. But price is important, because the price is failing an agreement, they do not want to shop even the pipeline.”

Although the Russian obtain the highest price, but demand for natural gas in Europe is relatively weak, shale gas reserves in North America and rich, not only self-sufficient, many ships also loaded with liquefied natural gas sail across the ocean to find buyers, further weakening Russia’s bargaining position. The new gas pipeline will cross thousands of kilometers, from Central Asia into China.

Weaver said: “To some extent, the Chinese forced the Russians now say, ‘You now have to accept our price, otherwise we will not sign the agreement, since we have other options.’ China can from Central Asia for more energy supply. ”

Medvedev’s visit to Beijing, the President of Turkmenistan has launched a natural gas compressor stations, to Turkmenistan’s gas exports to China increased to 400 billion cubic meters per year, than in Russia then agreed to the total natural gas exports to China more than. This fact once again shows that China can not rely on Russian gas.

Not long ago Russian President Dmitry Medvedev’s visit to China, signed a lot of energy cooperation agreement. But he did not get what he really wants, namely, modernization of China’s commitment to investment in Russian industry.

This is Medvedev between Chinese President Hu Jintao with the fifth meeting of this year.

Medvedev said that Chinese officials agreed to consider under construction on the outskirts of Moscow a new investment in science and technology park.

In some people, the Sino-Russian cooperation is a very appropriate one is the world’s largest energy producer, one is the largest energy consumer.

According to the recently signed agreement, China imports 10% of crude oil and coal will soon come from Russia. China will also to the Russian iron ore, aluminum, timber companies and farm enterprises to invest billions of dollars.

China has become Russia’s largest trading partner

Sino-Russian trade increased over the past decade to 12 times, the Chinese so replace Germany to become Russia’s largest trading partner. In 2007, the Russian Far East border with China the fastest growing.

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