While the recent gestures of affection between Russia and China has caught the international eye, it appears this marriage of convenience does not entail any financial promises. From The Moscow Times:
China’s direct investments in Russia shrank by 25 percent in the first half of this year, even as its overall foreign investment increased, according to Chinese Ministry of Commerce figures cited by Russian media.
China invested $56 billion in the non-finance sectors of 147 countries and territories around the world in the first six months of this year, marking a 29.9 percent increase from the same period in 2014, Ministry of Commerce spokesman Shen Danyang said Tuesday in Beijing, Russia’s Prime business news agency reported.
The partnership between the two revisionist powers was dubbed a “bad romance“ by TAI columnist Lilia Shevtsova earlier this month. As she put it, “[i]n this new entente, the Kremlin has but two choices: play the role of lap dog, or get ready to whine about how it is being humiliated all over again.”
With the economy beleaguered by the combination of Western sanctions and the persistently low price of oil, the present outlook for Russia is bleak. In January, writing in these pages, Swedish economist Anders Åsland predicted that Russia’s GDP would fall by around 10 percent this year. China’s not letting its feelings get in the way of good business.