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Russian and Chinese investors seen huge business opportunities on each others markets

Russian and Chinese entrepreneurs have continued to deepen bilateral business ties between their companies and countries as they see huge investment potential on each other’s domestic markets.These positive sentiments and positive outlooks on the Russian-Chinese ties are collaborated by data released in a survey jointly conducted by the global auditing and advisory giant, EY and the Russia-China Investment Fund (RCIF), which was established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC).

The size of the Chinese market and the possibilities it offers for high returns on investment were named among the biggest attractions for the Russian companies participating in the survey.A similar view of the Russian market was shared by the Chinese businessmen polled in the survey. More specifically, 73% of the Chinese respondents said they would consider business development opportunities in Russia. According to the survey, 92% of the respondents who are already present in Russia are optimistic about the prospects of the local market.

The results were presented today during the meeting of the co-chairs of the Business Advisory Committee (Committee), which took place within the framework of the Fourth Session of the Intergovernmental Russian-Chinese Commission for Investment Cooperation.As part the Committee, chaired by the CEO of RDIF Kirill Dmitriev from the Russian side, and the President of CIC Tu Guangshao from the Chinese side, the participants discussed the progress of the priority investment projects. To date, the Commission participants have jointly launched 73projects worth over $100 billion, with 7 projects having already been completed.

Commenting on these positive developments, Kirill Dmitriev, CEO of the RDIF and co-CEO of the RCIF, noted the high productivity level of the Russian-Chinese business ties.“We are very pleased that Russian and Chinese businesses are able to effectively discuss and eliminate any existing barriers to successful cooperation as part of the work of the Russian-Chinese Commission and the Committee. Within the framework of these discussions, we have not only succeeded in identifying and resolving obstacles to joint investment, but we have also facilitated the implementation of severalinvestment projects. We lookpositively at the prospects for business relations between the two countries and are happy to provide all-round investment support to our Chinese partners through the Russia-China Investment Fund.”

Alexander Ivlev, the managing partner at the EY Russian office, noted the continuing growth and strengthening of the bilateral trade and economic ties between China and Russia.Effective cooperation is already under way in such sectors as oil & gas, infrastructure, e-commerce, agriculture and construction. As a result, the volume of trade between China and Russia was up 34% year-on-year in January 2017, Ivlev said. The new level of relations between the two countries opens up new investment opportunities on the Chinese Market for Russian entrepreneurs, he added.

A survey of Russian investors operating in China shows that key advantages of doing business there, Ivlev noted. These include high labor productivity, low prices and readily available sources of financing. Russian entrepreneurs have concerns about cultural differences and the need to find local partners, but they nonetheless regard the Chinese market as highly attractive.