Chinese Investment In Russia Could More Than Double In 5 Years

China could more than double its investment into the Russian economy to $10 billion within 5 years if conditions are favorable, according to the Deputy Secretary-General of the China Overseas Development Association He Zhenwei, Russia’s TASS News Agency reports.

“Chinese investments abroad currently amount to $140 billion, with about $4 billion investment into Russia. This can be doubled at least to $8 billion, although not within one year. We can increase the investment to $10 billion step by step within five years, especially in terms of investment projects as road and railway construction requires large amounts,”the Chinese official told TASS on Tuesday.

Many Chinese enterprises are oriented to cooperate with Chile and Brazil because of the investment climate, although Russia’s location is much better in terms of logistics, He said. There are no reasons for Chinese investors not to invest in Russia, especially due to the good interstate relations between Russia and China at the highest level, He added.

Economic cooperation between Russia and China has been booming, mostly in energy and finance. Earlier this month, Moscow and Beijing have signed a number of energy, trade, and finance deals during Chinese President Xi Jinping’s visit to Moscow for the 70th anniversary of the end of World War II. Beijing will invest around $6 billion for the construction of Russia’s first high-speed rail line between Moscow and Kazan. The railway will be extended to China and will connect the two countries through Kazakhstan and will become part of the new Silk Road project.