Sino - Russian Trade Relations From Russian Perspective

One of Russia’s most important economic tasks is to constantly expand and strengthen the international economic relations. In 2012, Russia finally joined the world trade organization, and also participated in many different regional economic organizations. During the deepening of the globalization process, Russia must protect its own interests. Most countries perceive Russia as a "resource base", the source of resources for its own national economy. However, that situation does not comply with Russia’s national interests. Russia needs to strive for export diversification, improve shares of high value added products. According to the state government approved “2020 Russian economic and social long-term development strategy”, China is Russia’s leading foreign economic development partner. In fact, China has become the global economic "locomotive". Meaning to say, it has become the world’s largest export, gross domestic product and the highest foreign exchange reserves country. China is Russia’s first import country and second export country. In addition, China is Russia’s neighbor, having a long history of relations between each territories. China is an indispensable economic ally of Russia, needless to say, Russia’s primary goal is to consolidate its economic bond with China. On the other hand, Russia’s state interests cannot be ignored. It is imperative that Russia adopts the most appropriate developmental strategy that would comply with two main conditions, namely: Improve the trade volume between China and Russia’s export diversificationIn my thesis, the economic relations between China and Russia are studied using the historical and empirical aspects. First of all, this thesis theoretically describes the definition of the economic interests of the state, and in accordance with the economic indicators explains the importance of China to the Russian economy. Secondly, this dissertation reviews the development of trade relations between Russia and China, and analyzes the status quo of bilateral economic relations. Lastly, it aims to establish the econometric model of trade relations between Russia and China and propose predictions of the future development between two countries and their possible scenarios.