China Economy News: Russian Crisis Puts China at an Advantage
Adelyn Torralba | | Jul 06, 2015 10:15 AM EDT |
(Photo : Reuters) Russia’s failing economic structure is giving China the advantage of expanding their economic market in the embattled region.
Russia's failing economic structure is giving China the advantage of expanding their economic market in the embattled region.
According to Space War, the goods that came in from neighboring China has helped them ease the hardship of a failing economy. Sanctions over Ukraine and the diminishing value of energy exports have put the Russian economy on the brink of meltdown. Tajikistan, the capital of Dushanbe, is a witness to the weakening value of Somoni currency, adding the pains of receiving migrants in a jobless environment.
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The country's national bank recently released a report on remittances where Russia's remittances fell to 40 percent decrease compared to 2014 and the early quarter of 2015. Despite the threats of economic crisis, the embattled country, economic bonds with China remains strong. The trade industry in Russia flourished for the Chinese businessmen. A salesman was quoted saying, "The trade is good here. There is always some kind of opportunity."
In 2013, Chinese President Xi Jinping announced its plans to unveil its "Silk Road, Economic Belt" that will enable China to invest in infrastructures over Eurasia. Beijing has considered Russia as their number one trade partner in the last decade, even investing billions of dollars roads and pipeline projects that will join the two regions.
According to Rafaelo Pantucci, China is considered the most active and loudest when it comes to economic development. He also added, "The amounts of money you see being allocated or discussed when Russian leaders or individuals visit the region are always eclipsed by those that follow Chinese visits." Russia, on the other hand, does not complain about China's dominance in their trade industry. In fact, they expect to be the primary recipient of China's Silk Road, Economic Belt. The only thing the Russian government did not agree to is the creation of development bank under the Shanghai Cooperation Organization (SCO).
According to Igor Ivanov, Russia's ex foreign minister said that the economic relationship between China and Russia should not be taken as a threat to other countries in the Asia Pacific. The relationship flourished out of their own basis.
TagsRussia, russian economy, china russia relationship, China Silk Road Economic Belt
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