CHINA PROPOSES RELOCATION OF PRODUCTION TO RUSSIA’S FAR EAST
05 April 2016
During a visit to Beijing by the Minister for the Development of the Russian Far East Alexander Galushka, agreements were reached between the two countries on manufacturing and investment cooperation in the Russian Far East.
As the Ministry for the Development of the Russian Far East announced on its website, the agreements are part of a Chinese initiative to relocate Chinese companies to the region, taking account of the need to comply with Russia’s environmental regulations.
China has named the construction, metallurgy, energy, mechanical engineering, shipbuilding, chemical, textile, and cement industries, as well as telecommunications and agriculture, as priority sectors with production capacities potentially suitable for export.
As the Director of the Department of Northeastern Region Revitalization of the National Development and Reform Commission of China (NRDC) Zhou Jianping noted, in an address cited by the Ministry for the Development of the Russian Far East, the Chinese side will actively seek to attract private and state-owned companies to get involved in implementing these kinds of projects.
The Russian side is willing to engage with this approach, confirmed Rustam Makarov, a representative of the Ministry for the Development of the Russian Far East, who said that new businesses set up in priority development areas and the free port of Vladivostok would receive substantial tax concessions and preferential treatment from the authorities.
“We are ready to welcome Chinese companies and develop joint export-orientated production in the Russian Far East”, he said.
At the end of the meeting, the two countries agreed to set up a mechanism for regular consultations and exchanges of information on investment cooperation between the Ministry for the Development of the Russian Far East and the National Development and Reform Commission. The partnership agreement reached between the agencies was recorded in a memorandum of understanding on strengthening Russian–Chinese regional, manufacturing, and investment cooperation in the Russian Far East.