Beijing Says US Sanctions Good for Russian Business Opportunities in China
The simmering US-China trade war and US sanctions against Russia have become an excellent opportunity for Russian firms, according to the China Overseas Development Association (CODA).
Speaking at the Sochi Investment Forum, CODA secretary-general He Zhenwei stated that “The past year has become a very important one for Russia and China… Despite geopolitical challenges the countries’ economies keep on growing.” He continued by saying that Beijing’s recent deterioration in relations with Washington had a serious, positive impact on Russia-China cooperation, stressing that the trade turnover between the partners had topped US$100 billion last year. He added that the upward trend was especially noticeable in the agricultural sector. “For instance, export of soybeans from Russia to China grew one-and-a-half times in 2018 and totaled 800,000 tons,” he said. “The growth was boosted by US-China trade war that evoked a sharp deterioration of soy imports from the US.” He stated that China is a huge marketplace for Russia’s agricultural produce, including corn, meat, grains, honey and other goods. “In China we say ‘when God closes doors, he opens a window’” he said, adding that China has opened its market for Russian producers.
Chris Devonshire-Ellis of Dezan Shira & Associates comments: “Our firm’s China practice has a Russian desk and we have seen an active increase in Russian investors and retailers into the China market. There are increasing opportunities for Russian businesses to invest in Asia and initiatives such as the recent free trade agreements between the Eurasian Economic Union, China, India, Vietnam, and Singapore are paving the way for Russian commercial success in the region.”
Russia Briefing is produced by Dezan Shira & Associates. The firm advises international businesses on investing, setting up businesses and administering them throughout the Eurasian region, including Russia, China, India & ASEAN, and maintains offices and partners in each of these countries and regions. For assistance with investing in Russia, or for Russian businesses wishing to invest in Asia, please contact Maria Kotova at email@example.com or visit us at www.dezshira.com.