AIRR regions and China: potential for international interaction

29 January2024
AIRR regions and China: potential for international interaction

Experts from the St. Petersburg Politics Foundation, together with the Russian-Chinese Committee of Friendship, Peace and Development, compiled a rating of the productivity of interaction between the regions of the Russian Federation and the People's Republic of China for 2022-2023. As the Foundation's experts told AIRR, the activity of the regions was assessed on a ten-point scale. The Republic of Tatarstan is in the top five .

Thus, in the special economic zone of industrial production type in the Yelabuga region of the Republic of Tatarstan “Alabuga”, a logistics terminal named after Deng Xiaoping is being built, which promises to become the largest in Russia. The location is convenient - in close proximity to the M7 Volga federal highway and Begishevo international airport. It is planned that the logistics complex will receive at least one train from China every week and send it back.

Trade turnover between China and Tatarstan in 2023 will exceed the $2 billion mark. TASS reports this with reference to the head of Tatarstan Rustam Minnikhanov. Cars, equipment, chemicals and other products come from China to Tatarstan. Tatarstan, in turn, exports rubber, plastics, fuel, agricultural and other goods.

The republic is actively attracting investments from China, in particular the Haier company (production of household appliances) invested more than 23 billion rubles. Investment projects are being implemented with Kamastal (production of painting rolled steel), with Midea (production of refrigerators) and others. To increase business activity, the regional authorities are working to resolve the issue of direct flights with China. JAC Motors and KAMAZ cooperate in the assembly and sale of passenger trucks. The construction of factories for the production of electric water heaters and bearings is underway, and a plant for the production of elevators is being built.

The People's Republic of China ranks first among the leading trading partners of the Irkutsk region . Bilateral cooperation is developing in the fields of economics, culture, and tourism. In 2023, trade delegations from China came to the Irkutsk region. The parties agreed to jointly produce electric buses. The main exports of the Irkutsk region to China are chemical products, petroleum products, wood and wood products. China is the leader in terms of imports of agricultural products from the Irkutsk region.

In March 2024, it will be 20 years since the signing of the agreement between the Government of the Republic of Sakha (Yakutia) and the People's Government of Heilongjiang Province on trade, economic, scientific, technical and cultural cooperation. Yakutia annually participates in the Harbin International Trade and Economic Fair, where dozens of agreements are concluded between entrepreneurs of Yakutia and China.

Today, 19 districts of Yakutia are twinned with 22 Chinese cities and counties in the provinces of Heilongjiang and Jilin. The head of the Republic of Sakha (Yakutia) Aisen Nikolaev noted that the prospects for cooperation largely depend on the solution of transport and logistics problems between Yakutia and China. One of them is the construction of the Jalinda-Mohe cross-border crossing in the Amur region, which is being discussed at the level of the Chinese and Russian governments. The creation of a crossing with a railway-road bridge will shorten the journey by almost two thousand kilometers and will contribute to a significant increase in trade turnover between the twin cities and the development of a number of new industries.

The Power of Siberia gas pipeline passes through the territory of the republic. In the Neryungri region, the Chinese aircraft industry corporation AVIC and the Kolmar coal mining company have created the infrastructure of two mining and processing plants. In the Nam region, the Liaoyang Guofeng trade and economic company participated in the construction of a brick factory, the capacity of which allows it to produce up to 12 million bricks annually. Export goods include natural resources, precious metals, diamonds, timber, and hides.

In recent years, relations between the PRC and the Kaluga region have noticeably strengthened. In 2022, China (including Taiwan and Hong Kong) took 1st place among foreign trade partners of the Kaluga region, including 2nd in exports and 1st in imports, reports the regional government portal. The main items of Kaluga exports to China in 2022 are fuel and energy products, chemical products, rubber, food products and raw materials. The main Chinese imports are engineering products, chemical products, textiles, textile products and footwear.

Kaluga enterprises exporting products to China in 2022 - “Obninskogsintez”, “Mega Epitech”, “Karelia-Upoflor Siayas”, “Laminam Rus”, “Belousovo Poultry Farm”, “Troitskaya Paper Mill”, “Dial-K”, "FORBO Kaluga", "Kaluga Distillery Crystal" (Obninsk).

There are agreements on trade, economic, scientific, technical and cultural cooperation between the Kaluga region and China. A delegation from the region led by Vladislav Shapsha visited China in April 2023.

In December 2023, it became known that the Kaluga region sent the first batch of auto cosmetics and auto chemicals under the Dr. brand to China. Active. In 2024, exports will more than double and exceed 300 tons, TASS reported.

Chinese "Yapp" and "Fuyao Glass" produce components for automobiles. Chinese builders participated in the creation of a cement plant and an airport runway. An investment agreement was signed with the IGBR company on the construction in the Kaluga SEZ (Borovsky district) of an enterprise that produces equipment for the needs of heat power, oil and gas and geothermal industries.

The authorities of the Nizhny Novgorod region invite Chinese business to participate in the H2O Technopark and the Kulibin SEZ, and propose to open representative offices of Chinese manufacturers in popular areas, including the production of electronic components, electronics products and equipment. The region is interested in attracting Chinese business to the port infrastructure project on the Volga.

Sichuan Railway Investment Group acted as the contractor for the industrial complex in the Real-Invest technology park. The possibility of producing Chinese cars is being discussed. The construction of the M12 highway strengthens the positioning of the Nizhny Novgorod region as one of the participants in the international transport route “Europe – Western China”. Cooperation agreements have been concluded with the provinces of Sichuan, Anhui, Hunan, Hubei, and Qiangxi. In May 2023, Governor Gleb Nikitin visited Shanghai, and in November 2023 - Shenzhen.

in the Novgorod region with the participation of Chinese capital. According to the portal of the government of the Novgorod region, the share of Chinese products in the region's foreign trade turnover has remained at 10-17% in recent years. The region mainly exports mineral fertilizers, as well as wood and wood products to China. The share of Chinese imports in all imports of the Novgorod region is 46%. Governor Andrei Nikitin visited Beijing in April 2023.

In recent years, China has become an obvious and often uncontested partner for the Russian economy. The main advantage of China over all other trading partners available to Russia, in addition to the scale of the market, was its balanced export-import structure. Russian exports to China in 2023 reached approximately $110 billion with imports of about $100 billion. The potential of our relations in all spheres of the economy still remains very high”, - notes AIRR Director Alexander Smekalin.

Visiting the fair

Enterprises of the subjects of the Association of Innovative Regions of Russia (AIRR) came to China to participate in the festival-fair “Made in Russia” (held from January 27 to February 5). The main emphasis of the festival is the presentation of Russian food products.

Taking into account the priority product groups for export to China, leading companies of the agro-industrial complex have been invited to participate in trade: Miratorg, Cherkizovo, Efko, Baltika, MAKFA, Soyuzpischeprom, United Confectioners, Slavyanka ", "Russian Crab", "SZRK", "Ekonova", "Komos", "BRPI", "Uncle Vanya", "ABI Product" and others. Chinese consumers will be able to purchase over 1,400 different products from more than 70 Russian companies, including food, beverages and consumer goods. Russian companies will have the opportunity not only to demonstrate their products to Chinese consumers, but also to enter into contracts for the supply of goods. It will also be possible to buy Russian products on Chinese electronic trading platforms.

The Made in Russia festival is one of the key events aimed at strengthening economic ties between the Russian Federation and China in 2024.