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Russia is impressed by China's economic progress
Russia and China are set to sign a sweeping cooperation pact on technological modernisation that would suggest a shift in the Kremlin's foreign policy from the West to the East and have far-reaching implications for India's relations with Russia.
The Russian-Chinese Intergovernmental Memorandum on Cooperation in Modernisation of the Economy will be signed during a two-day working visit by Russia's Prime Minister Vladimir Putin, who arrives in Beijing on Tuesday.
The visit is laden with symbolism. It is Mr. Putin's first foreign trip after the ruling tandem announced plans to swap jobs next year, with Mr. Putin returning to the presidency and President Dmitry Medvedev taking charge of the government. The visit will signal Mr. Putin's move to take back the presidential reins of foreign policy into his hands.
This year marks the 10th anniversary of the historic Russian-Chinese friendship treaty that declared strategic relations between the two Asian giants. The agreements that will be signed in Beijing are clearly designed to show the direction bilateral relations will take during what could well be Mr. Putin's 12 years at the helm of Russia. While many observers will anxiously watch for new energy deals, it is the modernisation pact that is likely to shape their relations in a long-term perspective.
The Kremlin last year proclaimed the goal of forging “modernisation alliances” across the world to facilitate a technological overhaul of the economy. Until now the focus of this policy has been in the West as Moscow was skeptical about getting expertise from developing nations. A senior Kremlin official was quoted as saying last year: “China can hardly help us modernise because it pursues extensive growth based on cheap labour.”
However, problems in getting high-end technologies from the West and the impressive economic progress of China have made Moscow change its view.
Mutual benefit
Russia sees the modernisation pact with China as a “two-way traffic road”. According to Russian Deputy Premier Alexander Zhukov, China will benefit from Russia's leadership in nuclear energy, space and aviation, while Russia will take advantage of Chinese superiority in high-speed rail transport, ship building, power generation equipment and alternative energy production.
The Kremlin hopes to kill three birds with one stone: speed up technological renovation, promote growth in Russian regions along the 4,000-km border with China, and mitigate growing imbalances in bilateral commerce.
China has become Russia's biggest trade partner this year, with exports and imports exceeding $50 billion from January to August, China's People's Daily Online reported on Sunday.
Mr. Zhukov said the two countries' next trade targets are $100 billion by 2015 and $200 billion by 2020. Russia however is unhappy with the structure of bilateral trade. More than 70 per cent of Russian exports to China are minerals, timber, pulp and paper.
While machines and equipment do not exceed 5 per cent of Russian supplies to China, they account for more than half of Chinese exports to Russia.
Experts believe the biggest spinoff of the proposed modernisation pact will be the establishment of manufacturing facilities in China based on Russian technologies.
“Russia still possesses advanced technologies but cannot put them to production because of outdated equipment and high labour costs,” said Dr. Mikhail Karpov of the Moscow Institute of Asia and Africa.
New emphasis
Russia's new emphasis on technological cooperation with China creates both a challenge and opportunity for India. Delhi and Moscow have long been struggling to diversify their commercial exchanges into high-tech areas, but their trade remains dominated by minerals and agricultural products.
The modernisation pact Mr. Putin is to sign in Beijing should give India a cue to follow in its relations with Russia.
It should also be a wakeup call to New Delhi that there is no time to lose if India is to profit from Russia's drive for technological modernisation.
The Hindu : News / International : Russia, China to sign pact on technological modernisation
Glad to see newly elected russia president first official trip to china may be this will develope into an other all weather relationship.
Russia and China are set to sign a sweeping cooperation pact on technological modernisation that would suggest a shift in the Kremlin's foreign policy from the West to the East and have far-reaching implications for India's relations with Russia.
The Russian-Chinese Intergovernmental Memorandum on Cooperation in Modernisation of the Economy will be signed during a two-day working visit by Russia's Prime Minister Vladimir Putin, who arrives in Beijing on Tuesday.
The visit is laden with symbolism. It is Mr. Putin's first foreign trip after the ruling tandem announced plans to swap jobs next year, with Mr. Putin returning to the presidency and President Dmitry Medvedev taking charge of the government. The visit will signal Mr. Putin's move to take back the presidential reins of foreign policy into his hands.
This year marks the 10th anniversary of the historic Russian-Chinese friendship treaty that declared strategic relations between the two Asian giants. The agreements that will be signed in Beijing are clearly designed to show the direction bilateral relations will take during what could well be Mr. Putin's 12 years at the helm of Russia. While many observers will anxiously watch for new energy deals, it is the modernisation pact that is likely to shape their relations in a long-term perspective.
The Kremlin last year proclaimed the goal of forging “modernisation alliances” across the world to facilitate a technological overhaul of the economy. Until now the focus of this policy has been in the West as Moscow was skeptical about getting expertise from developing nations. A senior Kremlin official was quoted as saying last year: “China can hardly help us modernise because it pursues extensive growth based on cheap labour.”
However, problems in getting high-end technologies from the West and the impressive economic progress of China have made Moscow change its view.
Mutual benefit
Russia sees the modernisation pact with China as a “two-way traffic road”. According to Russian Deputy Premier Alexander Zhukov, China will benefit from Russia's leadership in nuclear energy, space and aviation, while Russia will take advantage of Chinese superiority in high-speed rail transport, ship building, power generation equipment and alternative energy production.
The Kremlin hopes to kill three birds with one stone: speed up technological renovation, promote growth in Russian regions along the 4,000-km border with China, and mitigate growing imbalances in bilateral commerce.
China has become Russia's biggest trade partner this year, with exports and imports exceeding $50 billion from January to August, China's People's Daily Online reported on Sunday.
Mr. Zhukov said the two countries' next trade targets are $100 billion by 2015 and $200 billion by 2020. Russia however is unhappy with the structure of bilateral trade. More than 70 per cent of Russian exports to China are minerals, timber, pulp and paper.
While machines and equipment do not exceed 5 per cent of Russian supplies to China, they account for more than half of Chinese exports to Russia.
Experts believe the biggest spinoff of the proposed modernisation pact will be the establishment of manufacturing facilities in China based on Russian technologies.
“Russia still possesses advanced technologies but cannot put them to production because of outdated equipment and high labour costs,” said Dr. Mikhail Karpov of the Moscow Institute of Asia and Africa.
New emphasis
Russia's new emphasis on technological cooperation with China creates both a challenge and opportunity for India. Delhi and Moscow have long been struggling to diversify their commercial exchanges into high-tech areas, but their trade remains dominated by minerals and agricultural products.
The modernisation pact Mr. Putin is to sign in Beijing should give India a cue to follow in its relations with Russia.
It should also be a wakeup call to New Delhi that there is no time to lose if India is to profit from Russia's drive for technological modernisation.
The Hindu : News / International : Russia, China to sign pact on technological modernisation
Glad to see newly elected russia president first official trip to china may be this will develope into an other all weather relationship.
