MEF-2018: Conference No.1

Published: May 7th, 2018

The Communist Party of China gave the project "One belt - one way" a new status. The initiative is included in the party's charter and in the Constitution of the country. According to the moderator of the conference of Yuri Tavrovsky, the holding of the Moscow Economic Forum immediately after these two fateful events for China is very timely. These changes open up new prospects for Russia and the Unified Energy System, which should be used. Possible cooperation on the Northern Sea Route, projects in the field of agriculture, the creation of an alternative railway from China to St. Petersburg. 

In general, the participants in the session agreed that despite the common vector for joint development, there remain a number of disagreements and problems that face both Russian and Chinese businesses. In particular, the co-chairman of the forum, Konstantin Babkin, recalled in his speech that not so long ago, during the Soviet period, Chinese specialists adopted technologies from Soviet ones. "Once China learned from us, today we want to learn from China, Russia needs a strategy, a development plan, we also want to develop and see all the prerequisites for a long and successful cooperation," he said. 

In turn, Sergei Glazyev noted that Russia and China should unite around the idea of ​​implementing joint investment projects. The main obstacle in this way are the intermediary currencies - for the most part the dollar, in which the absolute majority of mutual settlements are made. Cooperating with Russian companies that have come under US sanctions, Chinese banks risk receiving significant fines, and this problem will be removed only by the transition to settlement in their own currencies, for which it is necessary to create the appropriate payment systems, and to solve the issue of state control of capital movements, which all still remains in China. In addition, countries need to integrate payment infrastructure. Glazyev also believes that for joint development of business, mutual preferences in trade must be granted and fixed by the appropriate bilateral agreement. Mr. Glazyev noted that the fundamental problem is the lack of confidential relations, which is due to differences in mentality, as well as ignorance of the market of another country. 

Xing Guangcheng, who believes that differences in the mentality of the two countries are predetermined by the difference in geography and population density, also brought this question to attention. China, he said, is forced to develop economically, as the country is densely populated and territorially limited - in the absence of development, it will face stagnation, protests and subsequent negative consequences. Russia, by contrast, is the largest country in the world, not suffering from overpopulation, and does not feel "pressure" on development. However, despite the great difference in methods of work and understanding of the concept of work, countries must overcome these differences. Russia is China's largest neighbor and the friendliest partner, the speaker said. And China, he said, hopes for further joint development "and the construction of a common community with common destinies".

Ambassador Extraordinary and Plenipotentiary of Russia, Chairman of the Committee on Economic Policy of the Council of Federation of Russia, and Dmitry Mezentsev, Chairman of the Russian-Chinese Friendship Society, noted in his speech that the topic under discussion is relevant both in the EurAsEC cooperation system and in the "One Belt - One Way". "I am absolutely convinced that such attention to the topic that the organizers of the conference offered from the conference participants in its title, probably, those experts who are not directly in this room are once again an indicator that we are all looking with interest at huge the successes of the Chinese economy, the People's Republic of China as a whole in a multitude of directions, we take a lot of weapons, learn a lot, present our experience, and I think that this is very correct, "he said..

Honorary President of the International Congress of Industrialists and Entrepreneurs Victor Glukhikh, in turn, thanked the organizers for the high level of the conference, and noted that Russia has to do serious work to restore its world positions.

"We did not go somewhere up, we rolled down, and now, I do not know whether we pushed off from the bottom or not, but started the move as if in the right direction." We have locomotives. Yes, probably, we are not doing well we probably have problems, but at least we understand what we want to do, and we do not want to build capitalism, not communism, not socialism, but we want to build a socially-oriented state, which, we probably already understand, it is important, and this is probably the theme number 1, "he said..

Rustam Temirgaliyev, General Director of the Managing Company of the Russian-Chinese Investment Fund for Regional Development, talked about the features of the investment fund, as well as plans for its development in the future.

"The Fund is taking the first steps, the key areas of investment are cooperation in the development of projects in the nuclear energy sector, and in particular, we signed the first investment agreement on March 12, agreed on CNNC's investment in a joint project with Rosatom - mine No. 6. We are talking about the first investment this year at 2.5 billion rubles, and then until 2023 the volume of investments will be about 16 billion rubles. In fact, it is about creating a kind of, let me say, uranium OPEC between Russia th and China, given that Russia and China have the technology and scale, enables you to dominate the global uranium market, "- he said,.

Deputy Chairman of the Union of Chinese Entrepreneurs in Russia, General Director of the Russian-Chinese Business Park Chen Zhigang told the audience about the activities of the Russian-Chinese Association for Research and Development of the One-Belt-One Way strategy, based in St. Petersburg. "St. Petersburg is a port city, a logistics center, the capital of culture, art and education." In practice, we understand that such a platform was necessary, "he said.

Mikhail Ershov, chief financial research director at the Institute of Energy and Finance, professor of the Financial University under the Government of the Russian Federation, in turn, focused on financial issues of interaction between the two countries, in particular, on crypto-currencies. "Crypto-operations, in fact, out of the traditional competencies of central banks, produce a large number of transactions. The things that were formerly done under the auspices and supervision of the Central Bank are now made by third parties without the participation of the regulator, thereby reducing the effectiveness of traditional monetary policy in its standard sense" , - noted the speaker.

Plenipotentiary Minister of the Embassy of the PRC, Trade and Economic Adviser Li Jing yuan spoke about cooperation between the projects "One Belt - One Way" and the Eurasian Economic Union. In particular, according to him, in the first half of this year an agreement between China and the EEA will be signed. "This agreement is an important achievement of the interface between the Economic belt of the Silk Road and the EEA, and it is of great importance for China and the member states of the EEMP. It will help reduce non-tariff barriers to trade, improve the level of trade facilitation, create favorable conditions for production development, and deepen trade and economic relations between China and the member states of the EEMP, "he said.

Victoria Perskaya, Director of the Institute for World Economics Studies at the Financial University under the Government of the Russian Federation, spoke about her vision for the further development of the world economy. In particular, in her opinion, the world community is in the phase of transition from monopolar to multipolarity, in which China plays an important role, advocating for a regulated globalization. "At present, the People's Republic of China records what goals are being put for 2018 and until 2025. These are reform reforms, from earning income exclusively to creating products that generate dividends, that is, the issue of copying is taking second place, what corresponds to the Confucian ideology ", - she said.

The visiting professor of the Institute of Financial Studies of Chongyang of the Chinese People's University, John Ross, said that he regards Russian-Chinese relations as the most important relations in the world. "It's not the Russian-American, not the Sino-American, but the Russian-Chinese, which guarantees the stable positive development of both countries, and I'm not talking about this for the first time (...) The state interests of China are that Russia should be strong, stable and was in friendly relations with China.The United States and Western Europe, on the contrary, are interested in Russia being weak. ".

Director of the Center for System Forecasting Dmitry Mityaev said that, in his opinion, three main challenges are currently relevant for Russia: the global financial crisis, the trade war and geopolitical tensions. "The largest in the world is the Chinese capital market, it now amounts to more than 200 trillion yuan together with the shadow system, and it needs to be combined with our investment needs." We have depreciation of fixed assets in infrastructure, transportation, and even oil production and gas is more than 60%, we have a huge need, and we can do it all, "Mityaev said, summarizing his speech.

The political scientist and deputy editor-in-chief of the newspaper Zavtra, Alexander Nagorny, in turn, noted that Russia and China have "huge problems" in trade, economic and financial-economic cooperation. At the same time, in his opinion, an open, or hidden, opposition from the United States unites Russia and China. "The strength of the United States is measured not only by the financial and economic parameters of the force, I think the Americans are much more powerful: they are politico-ideological, they are maneuvers in the diplomatic sphere, and, of course, work with political, economic, financial elites both in China , and in Russia, "he said..

The general director of the Eurasian Center for High Technologies, Vladimir Remyga, drew attention to the "strong" projects of Russia, in particular, on projects in the Arctic zone and agriculture. "I will not tell the details of the Arctic projects, but I will say that there is a lot of interest here, and another project where Russia is as strong as possible and where the prospects for our cooperation develop as best as possible are cooperation in the field of agriculture," he said..

In addition, General Director of the Institute for Economic Strategies RAS, Academician of the Russian Academy of Natural Sciences Alexander Ageev, Chairman of the Board of the Eurasian Development Bank Andrei Belyaninov, Executive Dean of the Institute for Financial Studies, Renmin University of China (RDCY), Wang Wen, Director of the Institute for Far Eastern Studies of the Russian Academy of Sciences Sergei Luzyanin, and also a member of the Board (Minister) for Industry and Agro-Industrial Complex of the Eurasian Economic Commission Sergei Sidorsky.