Economic Zones Created to Boost Link Between China and Russia
Russia and China will be upgrading the border area business and economic cooperation zone under the mechanism of the Chine Russia Prime Minister Regular Meeting Committee in hopes to boost trade and investment activities as economics have posted slower growth in the recent months. Russia’s deputy minister of economic development Alexander Tsybulskiy stated that Russia is planning to create a 14 economic development zones and to diversify the functions of Zarubino Port in the Far East region.
Unlike the special economic zones in China that are located within the border provinces enjoy favorable trade laws and business regulations compared with the rest of the country. Russia’s economic development zones are found inland, thus the federal government will be providing an even more flexible policy to these zones in order to attract more foreign companies. By offering low cost land use and leasing terms, new tax and insurance preference with better infrastructure and public services, Russia will also offer simplified customs procedure and favorable conditions in hopes to attract foreign talent. Rules same with developed countries are provided to foreign investors in setting up their business in the economic zones.
Work groups for border area trade and economic zone cooperation will be under the supervision of the Economic and Trade Cooperation Branch Committee of China Russia Prime Minister Regular meeting Committee. With sufficient policies and financial support coming from both sides, Chinese investments and experts will not only be used in projects for the 2018 FIFA World Cup in Russia but in the eastern part of Russia as well in hopes to connect more potential market destinations in the Northeast Asian Region.
Although trade between Russia and China has dropped by 30 percent year on year during the first quarter due to the depreciation of the ruble and the declining prices of commodities.