Two world powers, often grouped by the United States as threats to security, have seemingly joined together. According to reports, China is looking into relocating some of its key industry resources in Russia which could mean strengthening ties between the two countries.
Beijing is looking into transferring some of steel and chemical plants in Russia. The plan also involves relocation of shipyards. Russia welcomes the idea noting that such is possible so long as the transfers and setup comply fully with local environmental laws.
“We are ready to accept Chinese enterprises to establish joint export-oriented production in the Far East territory”, RT quoted spokesman for the Far East Development Department Rustam Makarov.
The factories to be transferred span several industries including metalworking, construction, shipbuilding, energy, chemicals, machine building, textile industry, cement industry, telecommunications and agriculture. Nonetheless, Russian wants everything done according to environmental laws. According to reports, the deal came into place following a visit of the Department’s head Aleksandr Galushka to Beijing.
The memorandum stating all details related to the agreement was signed during the said visit. Additionally, the Kremlin reportedly promised “significant tax benefits and administrative preferences” to the Chinese companies. Authorities from China said that the project can involve state-owned and private companies.
According to Moscow Times, Russia has stepped up its efforts in coordinating with China after Western countries placed sanctions on the country in relation to the Ukraine conflict. The cooperation seems to be moving forward further. For instance, Chinese company Sinopec invested in the Russian petrochemical company Sibur, gaining 10 percent stake in it. Furthermore, a consortium of Chinese investors also bought shares Norilsk Nickel. The 13.3 percent share purchases also cover the Bystrinsky gold and copper project of the said company.