China is scarier than the WTO

Kasyanov is negotiating economic cooperation with Beijing

The Prime Minister of Russia, Mikhail Kasyanov, is currently on a visit to China. News agencies are actively reporting how he is negotiating with the Chinese on a variety of joint economic projects. The Russian government blieves that it is possible to discuss everything with “our eastern neighbor” and write it all down in contracts. Meanwhile, the millions of Chinese in Russia undermine Russian production.

Today, Mikhail Kasyanov delivered a speech to the business circles of Shanghai. Kasyanov stated that the Russian and Chinese governments are working on a list of joint economic projects. The list includes the development of China’s western regions, agricultural development, and the development of mineral wealth. In addition, the prime minister said that Russia is interested in the development of cooperation with China in the field of machine-building, including the issue of joint ventures in China. Russian telecommunication companies are interested in cooperation with their Chinese colleagues in the field of mobile and satellite communication. The government and businesses of Russia seek wide cooperation with their Chinese partners. The Russian government will welcome Chinese investments in the wood-working field as well.

Mikhail Kasyanov is sure that China has to listen to the offer from Russian oligarch Oleg Deripaska. Deripaska offered to build a special aluminium factory in Siberia to deliver aluminium to the Chinese market. The Russian premier is sure that the advantages of the project are obvious: electric power is cheaper in Russia, so the productive efficiency will be higher. Kasyanov also said that the holding Russian Aluminium is ready to develop a bauxite field in India.

This is a timely offer. Chinese aluminium companies are successfully cooperating with Russian companies on the international market. Furthermore, they are gradually winning the competition. Russian producers are kept afloat only with the help of very cheap electric power and railway transportation.

It seems that economic relations between Russia and China are being formed in Russia’s favor. The official circulation of commodity between the two countries made up 5.5 billion dollars over the first six months of the current year. This is 20% higher in compared to the same period of last year. Russia has the black ink in its trade with China. Russian exports make up some four billion dollars, whereas imports are 1.003 billion. There are 450 enterprises registered in the Russian Federation with the participation of Chinese capital. One hundred and ten of those enterprises are Chinese restaurants in Moscow. The total volume of investments is $282 million dollars. There are some 1300 enterprises registered in China with the participation of the Russian capital. The total volume of investments there makes up $674 million. Yet, one should not forget that the official figures of the ciruculation of commodity differ from the real ones, especially when it comes to Russian imports of Chinese goods.

Furthermore, at least 1.5 million Chinese people have settled in Russia, manufacturing various illegal productions. They do not register any enterprises, and they do not pay taxes either. The production prices are extremely low, but their products are in demand due to the low purchasing capacity of the Russian population. Even the awful quality of these products does not scare Russian people away.

Mikhail Kasyanov pointed out that small companies were dominating among Chinese companies in Russia. Kasyanov said that these companies often violate Russian laws. Most likely, he was afraid to admit that these small companies are covers for larger illegal businesses.

It is an open secret that the Chinese have cut down at least one-half of Russian Siberian forests. The timber is exported without any duties, bringing zero profit to the Russian treasury. Nearly all incidents of criminal prosecution of the Chinese in Russia are connected with Russian bribers takers, craving for more money.

The recent conflict between the Moscow police and illegal Vietnamese in Moscow was a bright example to prove that the Moscow government does not control the situation with Asian immigrants at all. These illegal migrants were selling fake goods at a Moscow Vietnamese market. They were supposed to be kicked out of Russia, but thelaw-enforcement bodies of Moscow had to conduct humiliating negotiations with them, with the participation of a Vietnamese ambassador.

However, all these aspects are likely to remain beyond the framework of the negotiations that the Russian prime minister is currently conducting in Beijing. His objective is to come to consent regarding the sale of Russian arms and electric power to China, the construction of new nuclear power plants, and development of Chinese bowels. Mr. Kasyanov will definitely not mention that the Chinese are about to suppress small business in Russia totally. Kind relations are a good thing. Maybe, Kasyanov will please our eastern neighbor, and it will be a message to the arrogant Europeans and Americans to grant WTO membership to Russia.

Kira Poznakhirko PRAVDA.Ru

Translated by Dmitry Sudakov