Ryzhkova Yu. A., Rusakova Yu. I.
Penza State University, Penza
CHINA'S INTERESTS
IN THE INTEGRATION PROCESSES OF THE EURASIAN ECONOMIC UNION (EEU)
According to the strategy of developing of integration
within post-soviet countries since January 2012 there was entered into force one
of the most important integration projects for the establishment of the Eurasian
Economic Community among Russia, Belarus and Kazakhstan. This has finished the
formation of a single customs territory. Since 2015 this integration
association is officially called the Eurasian Economic Union.
Economic efficiency and profitability from cooperation
with the members of EEU makes different states, in particular China, to
interact with this integration union. The history of Russian-Chinese economic
relations lasts several centuries. It should be admitted that economic
cooperation between these countries always depends on the political situation
in both states.
The topicality of the consideration of this theme is
that China's cooperation with the members of EEU is politically and
economically essential for every state. For example, it is planning to increase
a commodity turnover in more than one and a half times between the countries.
Moreover, in recent years because of the difficult political situation in the
world, China's support has a particular importance for Russia.
The purpose of this research is to examine the nature
and directions of the China's interest
to the EEU.
In October 2014 the number of members of this
integration association expanded Armenia became a part of this Union.
Kyrgyzstan and Tajikistan are the candidates for accession. As the President of
Russia considers the Customs Union has already shown its effectiveness: not
only the economic relations between the Union's countries are strengthening,
but external export is expanding also.
Shared
decision-making is one of the most important principles of the EEU. This
principle is also typical for the Union State of Russia and Belarus confirming
the equality of two states. Large economic benefits of integration make other
countries such as Turkey and India want to cooperate with the EEU. So, India
would like to enter into an agreement on free trade area with the Union [1].
Development of cooperation between China and regional
integration organizations such as the EEU has mainly economic and political
nature. It is considered by the Chinese leadership not only in terms of
promoting their trade and economic interests on a global scale, but also as an
important way of strengthening the political influence of the country in the
world.
Some specialists think that China's economic expansion
in post-soviet countries could be one of the reasons of creation of a single
customs territory between states. Nowadays, China gradually starts to intensify
its cooperation with the members of EEU, especially with the Republic of
Kazakhstan.
Kazakh-Chinese relations are characterized by high
intensity of political contacts. In 2011, Kazakhstan and China have reached a
new level of their cooperation - the comprehensive strategic partnership. Their
cooperation is very successful in the sphere of security, the fight against
terrorism, extremism and separatism, drug trafficking, illegal migration and in
the military sphere. The parties also signed an agreement on scientific and
technical cooperation and the mutual recognition of higher education [2].
Table 1 shows the main trading indicators Kazakhstan's
foreign trade with China. Foreign trade turnover between Kazakhstan and China
in 2013 totaled 22.5 billion US dollars, and this is 4% more than in 2012. At
the same time, the exports from Kazakhstan increased by 0,7% and amounted to
14.3 billion US dollars, while imports from China in Kazakhstan increased by
10% and amounted to 8,2 billion US dollars.
Table 1 – Trading indicators of Kazakhstan's foreign
trade with China, million US dollars [2]
|
Indicators |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
The trade turnover of
Kazakhstan with China |
12241,7 |
9458,1 |
14084,1 |
19706,3 |
21672,7 |
22527,0 |
|
Exports from
Kazakhstan to China |
7676,6 |
5888,6 |
10121,6 |
14777,5 |
14227,8 |
14334,3 |
|
A share in total
exports of the Republic of Kazakhstan (%) |
10,78 |
13,63 |
16,79 |
17,52 |
16,46 |
17,37 |
|
Imports from China to
Kazakhstan |
4565,1 |
3569,5 |
3962,5 |
4928,8 |
7444,8 |
8192,7 |
|
A share in the total
imports of the Republic of Kazakhstan (%) |
12,05 |
12,56 |
12,73 |
13,36 |
16,06 |
16,76 |
A decline of the trade between Kazakhstan and China
from 2008 to 2013 was observed only in 2009 because of the global economic
crisis. In that year the turnover decreased by 22% comparing with 2008 (decline
in exports was 23,4%, imports – 21,7%), in the following years the volume of
trade between the countries was increasing every year.
Activation of relations between Kazakhstan and China
also was shown in the customs area, for instance in 2011 Sino-Kazakh customs
post "Khorgos" changed its work schedule from eight to twelve-hour,
without breaks and days off. It is thought that the "Khorgos" uses a
new way of working on customs post, so in the future all customs posts along
the border between China and Kazakhstan could work the same.
Nowadays, the Republic of Kazakhstan using its main
advantage – geopolitical location – is focusing on expanding its capacity
bandwidth transport and logistics system in the direction of the international
transit corridor "Western China – Western Europe".
Transit corridors that pass through the territory of
Kazakhstan have a great advantage – significant reduction of distances. The way
from China to Europe through Kazakhstan is much shorter comparing to the distance
by the sea (nearly a half) and to the transit through the territory of Russia (by
a thousand kilometers). In this case the Republic of Kazakhstan acts as an
intermediary state, on the territory of which will run the newly created and
upgraded in the 21st century the Great Silk Road. So, this country will have
huge economic and political dividends.
Also China actively cooperates with Russia.
Discussions about Russian-Chinese partnership gathered pace in 2014 when the
countries of Group of seven insinuated Russia about its World isolation, and
some states have imposed sanctions against our country. Increasing the volume
of bilateral trade and investment, countries diversify their risks in case
their relations with West countries will continue get worse. It is also very
important for China because this state is experiences economic pressure from
the United States very often.
Nowadays the level of development of Russian-Chinese
investment cooperation is not as good as political and trade relations between
these countries. Nevertheless, it is planning to increase Chinese investment in
the Russian economy up to $ 30 billion by 2020.
According to the Table 2 at the end of 2013 the amount
of Chinese direct investments into the Russian economy amounted to 4 billion 80
million US dollars against 660 million US dollars in previous year. The total
amount of accumulated direct investments reached 7 billion 661 million US
dollars.
Table 2 – Chinese direct investments into Russia
during 2006-2013 years, million US dollars [3]
|
Indicators |
2006
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Chinese investments in Russia |
470 |
438 |
240 |
410 |
594 |
303 |
660 |
4 080 |
|
Russian investment in China |
67 |
52 |
60 |
32 |
35 |
31 |
29,9 |
22,08 |
The main directions of China's investment activities
in Russia are mining, forestry, energy, trade, household electrical appliances,
communications, construction and services.
The main directions of Russian investments in China
are a manufacturing industry, construction, transportation. The total number of
Russian projects with direct investments in China is somewhere about 2500,
which shows a relatively high level of investment activity of the Russian small
and medium businesses in China. Low indicators of aggregate investment of
Russian capital in the Chinese economy connected with the fact that China often
gets money from Russia through affiliated companies registered in Hong Kong or
other territories with preferential taxation.
Energetics, exploration of minerals, timber
processing, construction, trade and industrial production are the main sectors
of the Russian-Chinese bilateral investment cooperation. National mass media
widely discussed a contract between Russia and China that was signed on 21st of
May in 2014. It concerns the supply of Russian gas to China during next 30 years.
Approximate cost of that contract with China is about $ 400 billion.
China is very interested in dynamic development of its
relations with the other member of the EEU - Belarus. In its foreign policy,
both countries are stand for the establishment of a multipolar system of
international relations in the world and try to support each other in the
international arena. The current relations of these countries are estimated as
strategic interaction.
Foreign
policy and economic policies of the Chinese government has several main goals:
-
to provide stable supply (for example from the Middle East, North Africa,
Russia, etc.) of different natural resources to China, which this country
doesn't have enough itself;
-
to get access to modern high technologies in production and trade through
cooperation, e.g. with Belarus that will allow China to expand markets for its
own products;To stimulate exports of Chinese products in European and other
world markets, particularly in the Republic of Belarus;
-
to implement socio-cultural expansion on a global scale;
-
to find the most beneficial partners in all areas of the Government's activity.
Belarus could become not only an economic but also a military partner for China
[4].
For Belarus China seems to be a special “tool” in
solving all the accumulated problems in its economy. The development of
relations between these countries could be a kind of an instrument of pressure
of Lukashenko on Russian Government.
In this work were examined the China's fundamental
interests from cooperation with the members of the EEU. As a rule, they are
comprehensive: from scientific cooperation to improving the customs policy.
However, the main purpose of China is to increase its presence in Europe by
strengthening its position in the members of the EEU. It is assumed that,
interaction with this Asian country in the nearest future will only increase
due to current complex political situation. Probably an interaction will
gathering pace between Russia and China. Meanwhile, the Peking's Government
demonstrates the confidence that Moscow will find a way out of current
difficulties.
So, we can come up to the conclusion that the
development of China's relations with the members of the EEU has many positive
aspects for both sides. However, it is very important not to forget to increase
the interaction of members of the EEU with each other. Each integration association
has its own focus and goals and is able to play an important role in the world.
Anyway, the main goal of integration is creating better conditions for people
who live in countries that are involved in this process. Otherwise, any
association loses the meaning of its further existence.
The list of the
Internet resources that are used in the research
1. Kalmikova S., The Union State of Russia and
Belarus: A Testing Ground for Integration // Radio the Voice of Russia,
26.10.2013 URL: http://rus.ruvr.ru
2. Navigator of the countries of the Customs Union //
URL: http://www.analitika.kz/
3. The main results of investment cooperation between
Russia and China // URL: http://www.ved.gov.ru/exportcountries/cn/cn_ru_relations/cn_rus_projects/
4. Radov N. Belarus and China - a partnership or
hypocrisy? // URL:
http://www.imperiya.by/authorsanalytics3-8650.html