Xi To Meet Putin Next Week At SPIEF; Numerous Bilateral Deals To Be Signed
China Looking To Bypass US Trade, Russia Holds One Of The Keys
Chinese President Xi is to visit Russia and attend the St.Petersburg International Economic Forum on June 6th to 8th. Dezan Shira & Associates Founding Partner Chris Devonshire-Ellis and the firms head of the Russian Desk Maria Kotova will also be attending.
This years event takes on especial importance as China is currently engaged in a trade war with the United States, with Beijing recently accusing Washington of “naked economic terrorism” Russia has of course already been subject to sanctions and trade blockades from the United States, yet has been able to shift much of its supply chain and consumer needs to markets within its own Eurasian Economic Union and to Asia. Russian investment into Asia has skyrocketed since sanctions were imposed four years ago. Russia-Chinese bilateral trade hit US$100 billion last year and is set to reach US$200 billion by 2025 – a 20% growth rate per annum each year for the next five years.
The recent US-China trade dispute is also seen by some as a means by which China and Russia combined can push the United States out of Eurasian trade, a scenario that Washington does not appear to have considered. US think-tanks are expecting China to give in to Washington’s demands, China meanwhile is busy building up and investing in new supply chains for the items it has just placed reciprocal tariffs on. Russia is a huge potential alternative source for some of the products China wishes to buy elsewhere and out of the reach of Washington’s trade policies. That has been on the agenda for some time, as Chris himself noted the mood at SPIEF last year: “The United States has been labeled as a global betrayer of trust”.
Beyond the rhetoric, there is no doubt that the meetings between Presidents Putin and Xi will carry more trade urgency than before. Russian media and the Government is already anticipating that some 30 bilateral deals between Moscow and Beijing will be signed at the event, with a large number of these expected to be trade related. Parties wishing to ask specific questions about the Russia-China trade space and an overview of next weeks SPIEF 2019 may contact us here for requests.
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 firstname.lastname@example.org or visit us at www.dezshira.com.