Year of negative balance

Chinese Prime Minister goes to Moscow

At the beginning of next week, Premier of the State Council of the People's Republic of China Wen Jiabao will arrive in Moscow. The visit will last from November 5 to 6. The guest will take part in the 12th regular meeting of the heads of government of the two countries and in the closing ceremony of the Year of China in Russia . Wen is scheduled to communicate with Russian legislators and attend a bilateral business forum. This was announced yesterday at a press conference in Beijing by Russian Ambassador Sergei Razov and Assistant to Chinese Foreign Minister Li Hui. During Wen Jiabao's visit, it is planned to sign more than a dozen agreements , including intergovernmental, interdepartmental and commercial agreements related to nuclear energy, finance, joint projects in priority areas of science and technology development, cooperation between border regions, small and medium-sized businesses.

Both diplomats said that last year's trade turnover between Russia and China of $33 billion was surpassed in September with $34.9 billion, and by the end of the year it will overcome the landmark milestone of $40 billion. Ambassador Razov noted that in 2007, for the first time Over a long period of time, a new phenomenon has emerged that “requires analysis by experts from both countries”—a positive trade balance for China with Russia. It is connected “with a significant increase in imports from China, including engineering and high-tech products.” Russia's negative balance could amount to "several billion dollars." There has also been a tendency towards an increase in Russian exports of machinery and equipment, but “these products represent only percentages, which cannot cause us satisfaction.” To solve the problem, a chamber of trade in mechanical and technical products was created with the participation of over 200 Russian and Chinese firms. Its first meeting will be held in Moscow also as part of Premier Wen's visit.

According to Mr. Razov, during the visit “issues related to the development of energy cooperation, in particular the construction of oil and gas pipelines and the supply of electricity from Russia to China, will be considered.” Li Hui also emphasized the “healthy and constructive” continuation of energy cooperation, especially in the oil and gas industry. Its effectiveness will benefit both “the peoples of the two countries” and “a constructive international energy system.”

Wen Jiabao will begin his foreign tour on November 2 with participation in the regular meeting of the heads of government of the member countries of the Shanghai Cooperation Organization (SCO) in Tashkent. The next day he will be visiting Ashgabat, the capital of natural gas-rich Turkmenistan. Then he will head to Minsk and Moscow.

Alexey SLOBODIN