China, Russia stepping up economic ties

Chinese Premier Li Keqiang Tuesday wrapped up his first official visit to Moscow since he took office in March 2013, the second leg of his week-long Europe trip that came as the Ukraine crisis has brought relations between Russia and the West to their lowest point since the Cold War.[Special coverage]

Despite the unfavorable international situation for Moscow, the relationship between China and Russia stands at an all-time high, with sound political trust and frequent high-level visits. The two coordinate well and support each other across a host of major international issues such as Syria and anti-terrorism.

China has considered Russia an important partner since the mid-1990s. And it is Russia that has been more active in developing the relationship with China, as it is struggling with the worst economic downturn in a decade, the result of drops in oil prices, as well as EU and US sanctions. It is seeking closer ties with China to avoid the isolation on the international stage intended by the West.

During Li's three-day trip, the two sides signed about 40 agreements on trade, people-to-people exchanges, advanced technology, satellite navigation, currency swap and customs, a display of intimate economic ties between the two neighbors and bright prospects for future development.

China is Russia's largest trade partner, and last year two-way trade hit a record high at $89 billion, reported Bloomberg, citing official Russian data. This year bilateral trade is expected to top $100 billion, while Moscow expects trade volumes to double by 2020.

It's not fair to say that the economic and trade ties between China and Russia lag behind their well-developed political relations, as some observers have stated. After all, the two sides have adopted different models of development.

Since reform and opening-up, China has used cheap labor to attract foreign investment, while Russia has sought to draw investment with abundant natural resources such as oil and gas. Moscow will not likely open up completely to Chinese investors, especially with regard to resources.

But there is still the potential for breakthroughs in bilateral economic cooperation, in the form of larger, more ambitious joint projects. The two countries can step up cooperation in fields such as high-tech engineering, energy-saving technologies, environmental protection, bio-pharmaceutics, IT and finance, as Li wrote in an opinion piece published in Russia's Rossiyskaya Gazeta daily before he arrived in Moscow.

In this respect, cooperation on innovation is also a desirable area for the two sides to work together. In his article, Li called for the creation of "a new model for cooperation, to expand … [our] share … of scientific and technological innovation."

Li's three-day trip to Moscow followed his second visit to Berlin, which is seen as one of the EU's main negotiators in bargaining with Russia over the crisis that has ravaged Ukraine for more than six months.

It is reported that German Chancellor Angela Merkel hopes her Chinese counterpart could help mediate with Russian President Vladimir Putin during the trip.

Amid the standoff between Russia and the West, China has been quite careful in its handling of the issue. Although it has voiced opposition against Western sanctions on Russia, it takes a cautious stand and will not publicly take sides or voice support for Russia in this regard.It's not difficult to see China's clear stance in its cooperation with Russia, which focuses on economic and trade ties, technology and political issues between the two sides. China will stick to its position of supporting the Minsk truce agreement and calling for negotiations to solve the Ukraine crisis.