China-Russia technological cooperation can help avert impact amid trade tensions with US

By Hu Weijia Source:Global Times Published: 2018/9/11 22:33:42

The Russia-China Investment Fund (RCIF) and China's Tus-Holdings have announced joint investment plans focusing on developing technology, which "would see $1.28 billion investment in the Russian Tushino Project Technology Park," Reuters reported Tuesday.

Amid the ongoing Sino-US trade skirmish, Russia is likely to become a reliable friend and good partner of China when it comes to advanced technologies and facilitating their early implementation.

Some observers believe what lies behind the trade conflict is the US' concern over China's increasing ability in terms of technological innovation. In this view, manufacturing and advanced technologies may serve as a frontline in the conflict.

The dispute comes as Russia copes with a stagnant economy, and Moscow is eager to embrace Chinese investors as partners to achieve a recovery. There is a strong willingness to cooperate on both the Chinese and Russian sides.

The key to industrialization is heavy industry. Unlike other emerging economies including India, Brazil and South Africa, Russia has a developed heavy industrial base and a strong advantage in advanced technologies in areas such as the aerospace and defense industries. China and Russia have a longstanding historical and political relationship that could help renew their technology cooperation in the new era.

In January, the Financial Times reported that China's Great Wall Industry Corp, a commercial satellite launch company, is negotiating with Russia's top rocket maker to strengthen cooperation on engine technology. Amid escalating trade tensions between China and the US, Sino-Russian technology cooperation is likely to gain momentum to achieve mutually beneficial, win-win results.

The fourth Eastern Economic Forum (EEF), which opened on Tuesday and lasts until Thursday in Russia, is an opportunity for the two countries to build closer ties in economic cooperation amid US trade tensions. Around 600 representatives from China, including officials, heads of State corporations and business communities, are taking part in the forum, which offers a chance for bilateral communication and exchange.

Amid uncertainty about what US actions mean to the global economy, cooperation between China and Russia is an issue of global importance as the two emerging economies try to promote technological innovation and maintain economic stability.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



Posted in: EYE ON ECONOMY

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