Three Recommendations and One Way. How to Promote Business Between Russia and China

26.04.2018

Russia and China do not yet know how to work on each other’s markets. Fu Yanjie, secretary general of the Union of Chinese Entrepreneurs in Russia, explains in interview with valdaiclub.com what hinders the development of business cooperation between the two countries, how to overcome barriers and remove restrictions.

Sometimes we see that the ratings of Russian and Chinese businesses are underestimated. Establishment of a separate rating agency, independent of the European and American vision, would help strengthen the positions of Russian and Chinese companies. 

Moreover, China and Russia are now actively discussing the creation of an interbank financial telecommunication system, independent from the well-known SWIFT, which would also help the bilateral business. For many years, there has been a discussion and transactions in national currencies have materialized. We would like to increase their volume, but sometimes the Chinese entrepreneurs do not want to sign an agreement in national currencies, which is related to VAT refund. And we need to solve this problem inside China, so that trade can go on. 

It is also necessary to strengthen mutual understanding between Russian and Chinese businesses. We have different mentality, different cultures. And sometimes, when we communicate, the subject of conversation seems to be clear, but we do it on different levels, on different wavelengths. 

Three recommendations that would help improve interaction between Russian and Chinese businesses are as follows: 

First, the Russian side needs to introduce a more transparent policy on working with foreign business partners and investors. Chinese businesses are ready to invest in the Russian economy, but because of the lack of transparency, their efforts often become worthless.

Second, direct dialogue is important. At the 5th session of the Russian-Chinese conference it was discussed that China and Russia learn about each other with the help of Western media. This is not correct. In this regard, the Valdai Club is very useful – here we conduct direct, open talks, not constraining anyone, as it usually happens in politics. 

Third, it is necessary to create an adaptation platform for business. This may be a kind of “business incubator” for new companies entering the foreign market. In Russia, such a company has successfully operated for seven years, and the Chinese business in Russia has increased its turnover and gained confidence in working with Russian businesspeople. Today, Russian business is actively entering the Chinese market. And for Russian companies it is also necessary to create a certain platform in China, where they will get assistance to adapt in a foreign country.

Views expressed are of individual Members and Contributors, rather than the Club's, unless explicitly stated otherwise.

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