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Chinese investors will bring Russian oil and gas production to a qualitatively new level

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The Russian government can provide Chinese investors with access to strategic raw materials deposits

According to RIA Novosti news agency referring to Russian Deputy Prime Minister Arkady Dvorkovich, Russia can allow Chinese companies to manage strategic energy resources. The Russian government is considering the possibility of granting Chinese investors the right to possess more than 50% of the shares of strategic raw materials fields, with the exception of the offshore ones. Arkady Dvorkovich also noted that for such a development of Russian-Chinese cooperation there are no political obstacles.

This news reflects Russia's attitude to the Chinese economy, in particular - to manufacturing industries. From a global perspective, the entry of Chinese investors into the Russian oil and gas production market could be a turning point in the development of the Chinese energy industry and predetermine its development for decades to come. At the moment, China is a passive participant in the global energy market. The PRC is a developing economy with growing energy needs, which is why in recent years China has come to be seen as a potential partner with a large pent-up demand in the international crude oil market.

Access to foreign strategic resources - natural gas and oil - will require both economic and political efforts from China. For more than thirty years, since the proclamation of the policy of reforms and opening up, the PRC, relying on its own advantages (for example, the cheapness of labor), and the extensive development of the world economy, on the one hand, has become one of the largest participants in the world market, on the other - A "worldwide plant". However, until now, China, changing the global economic structure, cannot become a leader in world economic development. In such internal and external economic conditions, China missed the opportunity to transform the structure of production, its integration with other areas of the economy; in the process of accelerated development, the ability for self-improvement was lost. In the future, with a change in inter-economic interaction mechanisms, the PRC may lose its competitive advantages in the world arena. Therefore, when developing the Chinese national economy, it is necessary to take into account both endogenous factors and the growing need for stable international relations.

At the heart of all the achievements of China's economy are two types of resources: human capital and energy. It should be remembered that stable economic growth requires stable supplies of oil and natural gas. Paradoxically, the fall in world oil prices in 2014 was not a positive, but a negative factor in the development of the Chinese economy. Direct access to strategic oil and gas reserves should protect the economy of the PRC from the dangerous consequences of fluctuations in energy prices and provide it with a competitive advantage in crisis situations.

Thus, the economic meaning of the idea of ​​the Russian authorities - to provide control over strategic resources to Chinese investors - becomes clear. It is quite possible that at the moment China will begin to directly benefit from access to Russian raw materials deposits, rather than build up its potential in the face of falling world oil prices. In addition, the PRC will be able to use new opportunities to change the structure of the national economy and modernize industry. It should be borne in mind that the Russian oil and gas industry is characterized not only by huge reserves and low costs, but is also quite undeveloped technologically. Chinese investors can take Russian oil and gas production to a qualitatively new level.

It is obvious that the joint extraction of energy can be an example of the fruitful cooperation of two neighbors. The leaders of both countries should not forget about the positive changes that will follow as a result of the successful implementation of new opportunities.

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