China, Russia heads of government meet in Beijing
December 17, 2015, 11:34 am

Russian Premier Dmitry Medvedev and Chinese Premier Li Keiqang at a welcoming ceremony in Beijing on 17 December 2015 [Xinhua]

The heads of government meet also examined ways to push the proposed integration project of the Russia-led Eurasian Economic Union and China’s ambitious Silk Road Economic Belt.

Political, economic and security ties were discussed at the meeting attended by senior Cabinet ministers in both governments, Russian officials said.

China and Russia on Thursday signed more than 30 cooperation documents in energy, investment, finance, high technology and other areas following the Li-Medvedev summit.

Energy giants Sinopec and Rosneft signed an MOU on oil and gas projects in eastern Siberia while CNPC and Gazprom inked an agreement on the design and construction of the cross-border section of China-Russia east-route natural gas pipeline.

China Development Bank and Russia’s state corporation Vnesheconombank (VEB) also signed an agreement on a 10 billion yuan ($1.56 billion) loan.

“The slew of deals signed between China and Russia is a testimony of a higher level of our relationship, and we are determined to ensure their implementation,” Chinese Premier Li Keqiang said in statements to the press.

Li said both Russia and China will strive to reach the bilateral trade target of $200 billion by 2020.

With the sluggish global economic recovery, lower commodity prices and downward pressure for economies, China and Russia have faced common challenges for growth, Li said.

“But China and Russia have faced downward pressure on the economy head on,” he said.

China proposed joint efforts to set industrial capacity and equipment manufacturing as new areas to power the economy.

“I totally support what Mr Li Keqiang said about the need to react to the current economic environment and to the weakness and volatility of markets. We need to find new solutions and directions for cooperation, including in dealing with a number of challenges that our countries and economies are facing,” Medvedev told Li.

China is Russia’s biggest foreign trade partner, accounting for 11.3 per cent of Russia’s foreign trade in 2014. Russia is China’s ninth trade partner, with a share of 2.2 per cent in China’s foreign trade in 2014.

Bilateral trade has dropped this year owing to the economic downturn in Russia and the slowdown in China.

Russia’s exports to China were $19.1 billion, or down by 26 per cent. Imports from China stood at $22.4 billion, down by 32.7 per cent.

However, Chinese investment into Russian mining, agriculture sectors continue unabated.

China’s cumulative investment this year in the Russian economy reached $8.7 billion as of late June 2015, or up by 11.9 per cent since June 2014.

Russia has also taken over as China’s top oil supplier this year.

In the first six months of 2015, Russia’s oil exports to China increased by 15 per cent compared to the same period last year.

Russia, the largest oil and gas exporter, faces a recession this year as crude prices continue to fall.

During a September meeting this year, Presidents Xi Jinping and Vladimir Putin witnessed the signing of a raft of energy deals that included joint development of Russian oilfields.

During a three-day China trip, Medvedev attended a summit of the prime ministers of the SCO bloc and a World Internet conference.

Earlier on Thursday, the Russian Premier laid a wreath at the Monument to the People’s Heroes in Beijing’s Tiananmen Square that commemorates Chinese revolutionary heroes of the 19th and 20th centuries.

Russia and China reaffirmed support to a political settlement of the Syria issue and the UN’s key role. They vowed to maintain peace and stability in the Korean Peninsula and play constructive roles in a comprehensive, long-lasting and proper settlement of Iran’s nuclear issue, said a joint communique.

TBP and Agencies