Create a boom. Expert Zaklyazminskaya revealed the benefits of relations between the Russian Federation and China | Economics | Money

Create a boom.  Expert Zaklyazminskaya revealed the benefits of relations between the Russian Federation and China |  Economics |  Money

The rapid development of Russian-Chinese relations has become one of the main topics of recent times. The countries have already developed a rich experience of cooperation, and prospects for the future are even broader. What does the “Chinese economy” phenomenon mean and what Russia can learn from China, she told in an interview Senior Researcher at the Center for World Politics and Strategic Analysis, Institute of China and Modern Asia, Russian Academy of Sciences Ekaterina Zaklyazminskaya.

Victoria Kutuzova, — Ekaterina Olegovna, are there any “secrets” to the rapid development of the Chinese economy? Can we talk about the “Chinese miracle”?

Ekaterina Zaklyazminskaya: – Of course, you can. Since 1978, China has begun to implement the “reform and opening up policy,” which is primarily a series of economic reforms. In 2001, the country joined the WTO. Throughout virtually the entire period of “reform and opening up,” the country experienced a rapid economic “boom.” The export orientation of the Chinese economy gradually took shape; export trade grew especially rapidly at the beginning of the 21st century.

Another growth driver was large-scale investments in fixed assets. At this stage, the country developed a model in which citizens and businesses preferred to reinvest the income received rather than spend it. Already in 2007, China became the third largest economy in the world, overtaking Germany. In 2010, the country moved to second position, ahead of Japan. Many experts are confident that China will become the world’s largest economy in the future and will overtake the world leader, the United States.

— What are the main sources of income for the Chinese economy?

— Previously, economic growth in the country was spurred by export trade and large-scale investments in fixed assets. But gradually the model began to change. In 2020, the Chinese authorities began implementing a new model called “dual circulation.” The main point was the simultaneous development of both external and internal markets. The authorities began to stimulate domestic consumption. After the end of Covid restrictions, domestic consumption became the main driver of economic growth in China.

— What experience can Russia learn from China?

— Russia can learn from the experience of industrial development and the Chinese practice of fighting for technological sovereignty. China has managed to achieve independence from Western technology in many areas.

— What kind of China is Russia?

“Everything that the Chinese could adopt, they have already adopted. They are very adaptive and adapt well to changing environments.

— What is the role of the Russian Federation in the Chinese economy?

— Russia is one of the ten largest partners of the PRC. We occupy a leading position in the supply of energy resources. According to preliminary results for 10 months of 2023, Russia has become the largest oil supplier to China, overtaking Saudi Arabia. We are third in LNG supplies to China after Australia and Qatar and rank second in pipeline gas supplies after Turkmenistan.

— Ekaterina Olegovna, what can Russia offer China, besides raw materials?

— China is interested in Russian agricultural products, and joint projects in the automotive industry are being developed. The parties signed an agreement on the joint creation of a lunar station.

— What trade turnover between the countries is planned for next year? Are there trends towards its increase or decrease?

— For now, the plans set for 2024 are expected to be completed ahead of schedule. The leaders of our countries set long-term goals for bilateral trade and economic cooperation back in 2019. It was necessary to increase bilateral trade turnover to $200 billion by 2024. The indicators are likely to be achieved ahead of schedule, already in 2023.

— At the Valdai Forum, Putin said: “The most important and dangerous decade since the Second World War lies ahead.” What did he mean?

— The entire structure of the world economy and politics is being rebuilt. The political and economic weight of the developing world is growing, which in many ways is not ready to act to please Washington and to the detriment of its own national interests.


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