China as a reserve

15.06.2015

Relations development with China is the key agenda for the Russian external economic policy today. Thus, it is necessary to mark that upon the fact there is a certain concepts confusion in relationship between the countries. So, communications development with China is in many respects caused by deterioration of the relations of our state with the western countries, and China does not really suit such a provision like "a reserve". China is not a replacement to Europe, but a perspective economic center.

Since the USSR time Russia got used to perceive itself as an elder brother in relation to China, but the economic situation changed. In 2014 the People's Republic of China became the largest economy of the world, GDP of the country at par to consumer ability according to the IMF exceeded 17 632 billion dollars (GDP of the USA in 2014 is estimated at 17 416 billion dollars). Growth of the parameter following the results of a year made about 7,4%, and the current decline of growth rates is managed professionally.

Besides, population of China during 15 years since 2000 increased by 8,6%,  by more than 108 million people. This parameter makes about ¾ of the population of Russia in general and more than 17 times exceeds the number of the Far Eastern federal district inhabitants – the macro-region of the Russian Federation where the relations with China are the base for the actual development possibility.

Following the results of 2014 China ranked second point of the Russian products delivery after the Netherlands (transit "gate" of Europe), its share in the All-Russian parameter in physical terms makes 13,3% as for 2014. PRS consumes, primarily, raw materials and sends finished products to our country. And though definition of "Chinese" today leaves the feeling of cheap and low-quality goods, this situation changes promptly, – the country became the world production site long ago. Apple, Nike, Adidas and even Samsung from Korea constructed the plants in the Celestial Kingdom.

Today China has a number of large-scale initiatives which will promote the Russian-Chinese relations deepening. These are both an economic belt of the Silk way, both development of the Northern Sea Route, and a high-speed railway line which has to connect Moscow and Beijing, and the Shanghai Cooperation Organisation. Each of these projects makes the relations between the countries more dense.

But China has its own purposes: the same new Silk way applies to become an alternative to integration plans of the Euroasian economic union and even to become a stronger competitor to the Russian Trans-Siberian Railway. In 2008 Russia, the USA, Canada, Denmark and Norway adopted the Ilulissatsky declaration, having limited the rights of other states, including China, for use of Northern Sea Route to keep their positions on this territory.

Thus, the purposes of the People's Republic of China are often contrary to economic and political interests of Russia. Nevertheless, today China is an economically friendly state to many countries of the world and develops the economic relations far outside the neighboring countries. So, Russia has to adjust to keep its position as one of the key partners of the potential world leading country.