Belt and Road spurs high-level cooperation

by China Daily | 2023-06-30 10:00:00

Editor's note: This year marks the 10th anniversary of the launch of the Belt and Road Initiative. A decade of practice has demonstrated that it's a broad and prosperous way for China and the world to share opportunities and seek common development. In a more than 10-part series, China Daily finds out how the road of peace, prosperity, openness, green development, innovation and civilization will contribute more to the shared future of mankind.

Beijing, Moscow work together to create better future and share dividends of development

Russian Sinologist Yuri Tavrovsky decided to revisit China in 2015 to learn more about the modern rendition of the Silk Road and was surprised to see the transformation on the route.

He and his wife have visited China five times since 2015. Setting off in Shanghai, they headed west, taking photos and making copious notes. His research was published in August 2017 in his book One Belt, One Road: Traveling Westward.

The expert, now also the chairman of the Experts Commission of Russian-Chinese Committee for Friendship, Peace and Development, described the Belt and Road Initiative proposed by President Xi Jinping as "the main project of the 21st century", adding that the initiative has provided the world with the largest platform for international cooperation and has become an important social product that China is able to offer.

Noting this year also marks the 10th anniversary of the BRI, Tavrovsky said how the initiative will foster common development of the partner countries is something his study has shone light on.

During his state visit to Moscow in March this year, President Xi Jinping invited his Russian counterpart Vladimir Putin to travel to China for the third Belt and Road Forum for International Cooperation.

Through mutual visits, bilateral meetings, video conferences, and phone conversations, the two heads of state have, over the years, conducted frequent interactions in an in-depth and candid manner. They have also advanced bilateral relations and cooperation in various fields, such as economy, trade, investment, energy, science and technology, and people-to-people and cultural exchanges as well as local-level interactions.

During his meeting with Russian Prime Minister Mikhail Mishustin, Xi said the invitation was made during his informal meeting with Putin, and noted that Putin attended both of the previous two Belt and Road forums, stressing that the Belt and Road cooperation was important in connecting the two countries.

It fits the historical logic that Chinese leaders take Russia as a primary choice for their overseas visits, Xi said, adding that China and Russia are each other's biggest neighbors and comprehensive strategic partners.

Since the two sides established diplomatic ties 74 years ago, their people have worked together to create a better future and share the dividends of development. A synergy between the BRI and the Eurasian Economic Union, or EAEU, is a case in point.

The initial phase of talks between China and Russia over the coordination between the BRI and the EAEU concluded in May 2015 with the signing of a joint declaration for linking the two integration projects and creating a free-trade era.

Priorities outlined

The two governments also set out the priorities for cooperation: expanding trade, maintaining stability, sustainable development and economic integration of the region, establishing joint industrial parks and transborder economic zones, improving connectivity and infrastructure, supporting small and medium-sized enterprises and conducting mutual financial transactions in national currencies.

The second phase of negotiations between Chinese and Russian representatives on the convergence between the BRI and the EAEU involved drawing up a list of joint infrastructure and transport projects, talks on harmonizing legal, technical and tariff regulations between the two economic areas and signing an agreement on trade and economic cooperation that would create the legal framework for mutual economic relations.

The second phase of collaboration culminated in the signing of the agreement on trade and economic cooperation between China and the EAEU in May 2018. The agreement regulates 13 areas, including customs and trade procedures, intellectual property protection, reduction of non-tariff barriers and support for e-commerce, transparency and information exchange.

Interestingly, the importance of regional integration through the convergence of the BRI and the EAEU is mentioned in the preamble. Yet, the path toward the free trade agreement remains a long one. According to Ladislav Zemanek, a Czech researcher at the China-CEE Institute, some academics feel a common Eurasian economic area could be established by 2030.

For Russia, the Chinese initiative came at the right time, Zemanek said, adding Beijing followed a go-global strategy, whereas Moscow endeavored to reintegrate the post-Soviet area, which led it to the EAEU, which was established in January 2015.

"The sharp deterioration in European-Russian relations was accompanied by anti-Russian sanctions and a fall in oil and gas prices that led to the Russian economic recession of 2015 and 2016. All these factors forced Kremlin to change its course," he said.

Therefore, there is a greater opportunity than ever before to deepen ties between Russia and China and develop the BRI. In the last 30 years, Sino-Russian relations have gradually improved before reaching a peak.

China is also Russia's main trade partner, while meetings and talks are held regularly at different forums — the SCO, BRICS and the RIC(Russia-India-China) — as well as during exclusive presidential visits.

"Over the past 10 years, the China-Russia relationship has entered a new era, with bilateral cooperation achieving new results, and strategic coordination reaching new levels," said Chinese Ambassador to Russia Zhang Hanhui.

Noting that this year marks the 10th anniversary of the proposals for a community with a shared future for mankind and the BRI, Zhang said Russia has become China's important partner in Belt and Road cooperation, and the two countries have joined hands in building a community with a shared future for mankind, while the internal momentum and special value of bilateral cooperation have become more evident.

Mature partnership

"In the past 10 years, the China-Russia comprehensive strategic partnership of coordination for a new era has withstood the test of volatile international landscape, and has become increasingly mature," Zhang said.

In the early years of the former Soviet Union's dissolution, trade between China and Russia was only about $6 billion. Over the years, the trade and exchanges between the two countries have developed rapidly.

Trade between the two countries, which hitherto focused on energy and goods, now includes diverse areas.

Data from the Chinese Customs Administration in 2017 showed China's exports to Russia increased by 14.8 percent to $42.876 billion, while Russia's exports to China increased by 27.7 percent, reaching $41.195 billion.

In 2019, before the COVID-19 pandemic, China had maintained its position as Russia's largest trading partner. The volume of trade between the two countries has been growing. In 2016, it added 2.2 percent, in 2017 — 20.8 percent, and in 2018, it grew by 27.1 percent, exceeding $107 billion. In 2022, the bilateral trade reached a record high. China has remained Russia's largest trading partner for 13 years in a row.

Trade turnover between China and Russia in the first quarter of 2023 amounted to $53.84 billion, 38.7 percent more than the same period in 2022.

Song Kui, president of the Contemporary China-Russia Regional Economy Research Institute, was quoted in the Global Times as saying, "The strong growth momentum is within market expectations as the top leaders of the two countries have clarified the bilateral cooperation direction. Pragmatic economic cooperation has become an unstoppable trend."

Model projects

Some model projects under the BRI, such as the Heihe-Blagoveshchensk cross-border highway bridge, the Tongjiang-Nizhneleninskoye cross-border railway bridge and other boundary river bridges, have been opened for traffic, while cross-border logistics and transport channels have been further expanded.

The Heihe-Blagoveshchensk cross-border highway bridge is the first China-Russia highway bridge, which stretches from Heihe, a border city in Northeast China's Heilongjiang province, to the Russian city of Blagoveshchensk spanning the Heilongjiang River.

The highway bridge, in its original conception, was meant to not only enable transit of goods, but also lead to new economic zones and facilitate passenger travel between Heihe, home to around 1.3 million, and Blagoveshchensk, with a population of around a quarter-million.

Along with the opening of the Heihe-Blagoveshchensk highway bridge in June 2022, China and Russia will also set up a cross-border economic cooperation zone to facilitate comprehensive cooperation and further opening-up between China and Russia, and to meet the rising demand for trade.

"The Blagoveshchensk-Heihe bridge has special symbolic significance in today's disunited world. It will become yet another thread of friendship linking the people of Russia and China," said Yury Trutnev, Kremlin's envoy to Russia's Far East.

The China-Russia highway bridge facilitates trade between Northeast China and Russia's Far East region adding to the existing channels linking the two countries, including railways, inland waterways, sea freight and pipelines, said Zhang Hong, an associate research fellow at the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences.

Calendar

Belt and Road spurs high-level cooperation

by China Daily | 2023-06-30 10:00:00

Editor's note: This year marks the 10th anniversary of the launch of the Belt and Road Initiative. A decade of practice has demonstrated that it's a broad and prosperous way for China and the world to share opportunities and seek common development. In a more than 10-part series, China Daily finds out how the road of peace, prosperity, openness, green development, innovation and civilization will contribute more to the shared future of mankind.

Beijing, Moscow work together to create better future and share dividends of development

Russian Sinologist Yuri Tavrovsky decided to revisit China in 2015 to learn more about the modern rendition of the Silk Road and was surprised to see the transformation on the route.

He and his wife have visited China five times since 2015. Setting off in Shanghai, they headed west, taking photos and making copious notes. His research was published in August 2017 in his book One Belt, One Road: Traveling Westward.

The expert, now also the chairman of the Experts Commission of Russian-Chinese Committee for Friendship, Peace and Development, described the Belt and Road Initiative proposed by President Xi Jinping as "the main project of the 21st century", adding that the initiative has provided the world with the largest platform for international cooperation and has become an important social product that China is able to offer.

Noting this year also marks the 10th anniversary of the BRI, Tavrovsky said how the initiative will foster common development of the partner countries is something his study has shone light on.

During his state visit to Moscow in March this year, President Xi Jinping invited his Russian counterpart Vladimir Putin to travel to China for the third Belt and Road Forum for International Cooperation.

Through mutual visits, bilateral meetings, video conferences, and phone conversations, the two heads of state have, over the years, conducted frequent interactions in an in-depth and candid manner. They have also advanced bilateral relations and cooperation in various fields, such as economy, trade, investment, energy, science and technology, and people-to-people and cultural exchanges as well as local-level interactions.

During his meeting with Russian Prime Minister Mikhail Mishustin, Xi said the invitation was made during his informal meeting with Putin, and noted that Putin attended both of the previous two Belt and Road forums, stressing that the Belt and Road cooperation was important in connecting the two countries.

It fits the historical logic that Chinese leaders take Russia as a primary choice for their overseas visits, Xi said, adding that China and Russia are each other's biggest neighbors and comprehensive strategic partners.

Since the two sides established diplomatic ties 74 years ago, their people have worked together to create a better future and share the dividends of development. A synergy between the BRI and the Eurasian Economic Union, or EAEU, is a case in point.

The initial phase of talks between China and Russia over the coordination between the BRI and the EAEU concluded in May 2015 with the signing of a joint declaration for linking the two integration projects and creating a free-trade era.

Priorities outlined

The two governments also set out the priorities for cooperation: expanding trade, maintaining stability, sustainable development and economic integration of the region, establishing joint industrial parks and transborder economic zones, improving connectivity and infrastructure, supporting small and medium-sized enterprises and conducting mutual financial transactions in national currencies.

The second phase of negotiations between Chinese and Russian representatives on the convergence between the BRI and the EAEU involved drawing up a list of joint infrastructure and transport projects, talks on harmonizing legal, technical and tariff regulations between the two economic areas and signing an agreement on trade and economic cooperation that would create the legal framework for mutual economic relations.

The second phase of collaboration culminated in the signing of the agreement on trade and economic cooperation between China and the EAEU in May 2018. The agreement regulates 13 areas, including customs and trade procedures, intellectual property protection, reduction of non-tariff barriers and support for e-commerce, transparency and information exchange.

Interestingly, the importance of regional integration through the convergence of the BRI and the EAEU is mentioned in the preamble. Yet, the path toward the free trade agreement remains a long one. According to Ladislav Zemanek, a Czech researcher at the China-CEE Institute, some academics feel a common Eurasian economic area could be established by 2030.

For Russia, the Chinese initiative came at the right time, Zemanek said, adding Beijing followed a go-global strategy, whereas Moscow endeavored to reintegrate the post-Soviet area, which led it to the EAEU, which was established in January 2015.

"The sharp deterioration in European-Russian relations was accompanied by anti-Russian sanctions and a fall in oil and gas prices that led to the Russian economic recession of 2015 and 2016. All these factors forced Kremlin to change its course," he said.

Therefore, there is a greater opportunity than ever before to deepen ties between Russia and China and develop the BRI. In the last 30 years, Sino-Russian relations have gradually improved before reaching a peak.

China is also Russia's main trade partner, while meetings and talks are held regularly at different forums — the SCO, BRICS and the RIC(Russia-India-China) — as well as during exclusive presidential visits.

"Over the past 10 years, the China-Russia relationship has entered a new era, with bilateral cooperation achieving new results, and strategic coordination reaching new levels," said Chinese Ambassador to Russia Zhang Hanhui.

Noting that this year marks the 10th anniversary of the proposals for a community with a shared future for mankind and the BRI, Zhang said Russia has become China's important partner in Belt and Road cooperation, and the two countries have joined hands in building a community with a shared future for mankind, while the internal momentum and special value of bilateral cooperation have become more evident.

Mature partnership

"In the past 10 years, the China-Russia comprehensive strategic partnership of coordination for a new era has withstood the test of volatile international landscape, and has become increasingly mature," Zhang said.

In the early years of the former Soviet Union's dissolution, trade between China and Russia was only about $6 billion. Over the years, the trade and exchanges between the two countries have developed rapidly.

Trade between the two countries, which hitherto focused on energy and goods, now includes diverse areas.

Data from the Chinese Customs Administration in 2017 showed China's exports to Russia increased by 14.8 percent to $42.876 billion, while Russia's exports to China increased by 27.7 percent, reaching $41.195 billion.

In 2019, before the COVID-19 pandemic, China had maintained its position as Russia's largest trading partner. The volume of trade between the two countries has been growing. In 2016, it added 2.2 percent, in 2017 — 20.8 percent, and in 2018, it grew by 27.1 percent, exceeding $107 billion. In 2022, the bilateral trade reached a record high. China has remained Russia's largest trading partner for 13 years in a row.

Trade turnover between China and Russia in the first quarter of 2023 amounted to $53.84 billion, 38.7 percent more than the same period in 2022.

Song Kui, president of the Contemporary China-Russia Regional Economy Research Institute, was quoted in the Global Times as saying, "The strong growth momentum is within market expectations as the top leaders of the two countries have clarified the bilateral cooperation direction. Pragmatic economic cooperation has become an unstoppable trend."

Model projects

Some model projects under the BRI, such as the Heihe-Blagoveshchensk cross-border highway bridge, the Tongjiang-Nizhneleninskoye cross-border railway bridge and other boundary river bridges, have been opened for traffic, while cross-border logistics and transport channels have been further expanded.

The Heihe-Blagoveshchensk cross-border highway bridge is the first China-Russia highway bridge, which stretches from Heihe, a border city in Northeast China's Heilongjiang province, to the Russian city of Blagoveshchensk spanning the Heilongjiang River.

The highway bridge, in its original conception, was meant to not only enable transit of goods, but also lead to new economic zones and facilitate passenger travel between Heihe, home to around 1.3 million, and Blagoveshchensk, with a population of around a quarter-million.

Along with the opening of the Heihe-Blagoveshchensk highway bridge in June 2022, China and Russia will also set up a cross-border economic cooperation zone to facilitate comprehensive cooperation and further opening-up between China and Russia, and to meet the rising demand for trade.

"The Blagoveshchensk-Heihe bridge has special symbolic significance in today's disunited world. It will become yet another thread of friendship linking the people of Russia and China," said Yury Trutnev, Kremlin's envoy to Russia's Far East.

The China-Russia highway bridge facilitates trade between Northeast China and Russia's Far East region adding to the existing channels linking the two countries, including railways, inland waterways, sea freight and pipelines, said Zhang Hong, an associate research fellow at the Institute of Russian, Eastern European and Central Asian Studies of the Chinese Academy of Social Sciences.