The Chinese are investing billions in Russian business

Russia and China “fully to realize the potential for economic and political level”, — said the first Secretary of the Embassy of China in Russia Li Chaohua at the conference devoted to development of Russian-Chinese trade and economic relations, stressing that relations between the countries are experiencing the best period in its development.

According to Lee Chaohua, the growth of trade between the two countries in 2018 rose by 25.7% to $65.7 bn, and the end of the year it will exceed $100 billion in 2019 (and current) declared the year of inter-regional cooperation.

Китайцы инвестируют миллиарды в российский бизнес

According to managing partner of the ILM Andrew Lukasheva, the increase in the proportion of investors from China and other Asian countries due to long-term strategy, the so-called “pivot to the East”, and preferential terms and conditions provided to new residents to special economic zones.

Investments in production

Economically attractive for joint ventures special economic zones and industrial parks Primorye, Siberia, the Urals and the Volga region, where residents enjoy various tax concessions. The most popular industries among companies with Chinese roots, steel, mining, petrochemical and wood industries and engineering. Many projects have a long-term investment perspective and are not limited to a one-time investment.

As an example, the expansion of production facilities of the Chinese company Haier, which produces household appliances in Naberezhnye Chelny. In 2016, there was commissioned a plant for the production of refrigerators, in which investments amounted to $50 million (about 3.25 billion rubles at current exchange rate). In 2018, the manufacturer of household appliances, laid the first stone of factory on manufacture of washing machines with comparable investment (also at $50 million). The Haier plans in Naberezhnye Chelny two plants are not limited. In the end, on the area of 127 hectares should appear industrial Park of 12 plants with a total cost of about $1 billion.

Another large-scale project involving Chinese investments — “Yamal LNG”. The project LNG in the Arctic is 20% owned by China’s largest oil and gas company CNPC, 9.9%, and in 2016 bought the Chinese silk road Fund for €1,089 billion In 2017 launched the first production line with a capacity of 5.5 million tonnes, with All their scheduled three, thus, the total capacity will be 16.5 million tons per year. Total investment in project will amount to about $23.4 billion, or about 1.5 trillion rubles.

In 2019 it is planned to put into operation an automobile factory “Haval Motor Rus” in Tula, owned by a Chinese automaker Great Wall Motors, which specializiruetsya on crossovers and SUVs. Construction began in 2015 and has now been completed. Now the company is engaged in transport infrastructure and import of equipment. Total investment in construction was estimated to be worth about $354 million

Created with the participation of the Russian-Chinese investment Fund group of companies Russia Forest Products (RFP) in 2017, has launched production of dry lumber from spruce and fir in the city of Amursk of the Khabarovsk region. Investment in the project amounted to 12 billion rubles. The RFP also announced the construction of several plants in Primorye and Yakutia.

Another major project implemented in 2017 — machine-tool plant in the Leninsky district of Moscow region. Investment in Russian-Chinese trade “DMTG RUS” amounted to about 1.2 billion rubles, and the total investment in manufacturing to 2020 reached 8 billion rubles.

China wants to invest heavily in the construction and all that it involves. The list of equipment that is traditionally Chinese investors present at the exhibitions is very wide. “Pumps, power installations, lifting equipment and other construction equipment China is widely used, for example, in the Moscow high-rise construction,” — said the Deputy Director of “tsniip of the Ministry of construction of Russia” Vladimir Gutnik. Great potential remains and the construction of roads and metro. For example, in Moscow and some subway build a Chinese company with the involvement of Chinese equipment and workers from China.