Russia and China show united front at economic forum

Chinese President Xi Jinping appears Friday as guest of honour at Russia's showcase economic forum, as the two neighbours present a united front in the face of shared troubles with the US.

Xi arrived in Moscow on Wednesday for a three-day visit with Vladimir Putin and described the Russian leader as his "best friend" during a cosy meeting at the Kremlin.

To end the trip, Xi and his host will appear at a plenary session of the annual Saint Petersburg International Economic Forum, which Moscow hopes will woo foreign investors despite an uncertain business climate.

Xi is set to present China's ideas on sustainable development and multilateral cooperation, Beijing said ahead of his appearance.

The 2019 forum "will illustrate very clearly just how bi-polar the world has become," said Chris Weafer, a senior partner at the Macro Advisory consulting firm.

"In the same week that President Trump will be having tea with the Queen in London, President Putin will be hosting President Xi in Saint Petersburg."

The trip comes five years after Moscow's annexation of Ukraine's Crimea peninsula led to a serious rift with the West and a move towards Russia's neighbour to the east.

China meanwhile is locked in a trade war with the United States that has seen Washington impose sweeping duties and move to blacklist companies like tech giant Huawei.

Moscow and Beijing's economic ties have grown in recent years, though they remain heavily weighted in favour of China, which dwarfs Russia in economic and demographic terms.

- Dozens of deals signed -

Xi's visit has already seen the signing of dozens of commercial contracts in e-commerce, telecoms, gas and other areas.

Other deals have been signed at the forum, including one on Friday between Russian and Chinese shipping companies to work together to develop Arctic sea routes.

While this is the Chinese leader's first appearance at the economic forum, where he heads a 1,000-strong delegation, he and Putin have met regularly in recent years.

Ahead of Xi's visit, Kremlin advisor Yury Ushakov described China as "Russia's most important economic partner".

The partnership is yielding increasing trade, which grew by 25 percent in 2018 to hit a record $108 billion, he said.

At a panel Friday on Russia-China business ties, Russian tycoon Viktor Vekselberg, a target of US sanctions, called for the two countries to carry out more trade in their national currencies, bypassing the US dollar.

But despite political tensions and repeated rounds of sanctions over Moscow's actions in Ukraine, the European Union remains by far the biggest foreign investor in Russia -- well ahead of China and the US.

"China is taking time to ramp up investments in Russia," said Charles Robertson, chief economist at Renaissance Capital. "It wants to feel secure about the long term, it doesn't want to rush into it."

He predicted China would make big investments over the next three to five years, possibly even sooner, as Russia plays an important role in projects along Beijing's New Silk Road.

- Worry over investor arrest -

The first day of the forum on Thursday saw Putin make a pitch for increased foreign investment as Russia looks to revive an economy hit by Western sanctions over Ukraine and the drop in oil prices.

After emerging from recession in 2017, the Russian economy ticked up by only 0.5 percent in the first quarter of this year.

Putin, whose approval ratings have dropped to record lows, has vowed to boost growth through a series of "national projects" -- ranging from healthcare to infrastructure -- that will cost Russia $388 billion.

But foreign investors, already wary of Russia' volatile business climate, were further spooked by the arrest on fraud charges in February of US businessman Michael Calvey, the founder of one of the oldest private equity firms focusing on Russia.

He denies the charges, saying the arrest was the result of a shareholder dispute.

Speculation swirled at the forum over whether Calvey, who is under house arrest, would attend. On Friday his lawyer said authorities had not yet replied to a request from the businessman to travel to Saint Petersburg.

China-US tensions 'very negative influence' on global economy: Australia PM
Singapore (AFP) June 7, 2019 - Trade tensions and high-tech rivalry between the US and China are having a "very negative influence" on the world economy, Australia's prime minister said Friday as he urged both powers to resolve their differences.

Scott Morrison, speaking at a business lunch during a visit to Singapore, urged countries to continue expanding partnerships with one another as Washington and Beijing struggle to resolve their disputes.

The world's two biggest economies have been engaged in a bruising trade war for months, and their dispute recently spilled over into the high-tech sphere after US President Donald Trump blacklisted Chinese technology giant Huawei on national security grounds.

"It's a very negative influence on global economic performance... This is frustrating because many of the fundamentals of the global economy have strengthened," said Morrison.

He said it was in the interest of the rest of the world that both countries resolve their disputes, but in the meantime nations should take steps to keep the momentum for free trade.

Morrison cited the Trans-Pacific Partnership (TPP), a free-trade deal that 11 nations agreed on even after the US pulled out.

Morrison earlier met with Singaporean Prime Minister Lee Hsien Loong and both expressed hope that another free-trade pact called the Regional Comprehensive Economic Partnership (RCEP) in which both are members would be concluded this year.

"We're reasonably confident that with sufficient political will and willingness to make difficult trade offs, it's possible to conclude the RCEP by the end of 2019," Lee said in a joint news conference after the meeting.

Morrison said the 16 nations negotiating RCEP can now focus on talks after the completion of elections in partner states, including Australia, Indonesia and Thailand.

"We think it's a very important agreement for our region," the Australian leader said.

China has backed RCEP -- of which the US is not a member -- amid its prolonged trade showdown with Trump.

RCEP negotiations gathered steam after Trump pulled out of the TPP, a trade pact advocated by his predecessor Barack Obama that did not include China and, unlike RCEP, established labour and environmental standards.

Related Links
Learn about the Superpowers of the 21st Century at SpaceWar.com
Learn about nuclear weapons doctrine and defense at SpaceWar.com

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Ukraine's new leader asks Europe to pressure Russia to end war
Brussels (AFP) June 4, 2019
Ukraine's new President Volodymyr Zelensky vowed to press Europe to step up pressure on Russia to end the war in his country's east, as he arrived in Brussels on Tuesday for his first foreign trip as leader. The former comedian who crushed incumbent Petro Poroshenko in last month's election met European Commission chief Jean-Claude Juncker before holding talks with the head of NATO Jens Stoltenberg. Writing on his Facebook page, Zelensky dedicated his trip to the children caught up in the confli ... read more