Better policy frame to boost investment in Russia

Although China-Russia bilateral ties are highlighted by a deep political relationship and enormous market potential, analysts have noted low levels of mutual trust in their business communities.

Russian entrepreneurs have not yet become acquainted with China, and their Chinese counterparts are often confused by Russia's complex tax policies, according to Chinese industry insiders.

Analysts from Russia have also pointed out that most of the Chinese capital in Russia has flowed to the property and service sectors, followed by the financial and construction industries, with little making its way into the manufacturing and mining sectors.

Despite an unbalanced investment structure, Chinese investors remain reluctant to operate their businesses directly in Russia, according to Russian analysts.

Sergey Sanakoev, chairman of the Russian-Chinese Center for Trade and Economic Cooperation, said urgent efforts must to be made by the government to foster an honest business environment.

Shuvalov said Russia holds an open attitude toward Chinese investment. He welcomed Chinese companies to invest in Russia, saying his country is working on creating a quality environment for foreign investors.

China's Ministry of Commerce, according to Gao, will also work closely with the Russian side to refine related policies and services.

China will continue to guide qualified Chinese enterprises to invest in Russia in accordance with internationally accepted rules, the minister said.

Deepening investment in Russia's far east

At Monday's conference, many Russian business practitioners said their country is in need of strategic investors, namely those who can bring advanced technology and managerial experience as well as money.

Hu Bing, president of the China-Russia Investment Fund, said ample opportunities remain unexplored in Russia in fields including manufacturing, technology and innovation, as well as sales and logistics.

One of the objectives of Monday's promotion is to attract Chinese capital into large-scale projects in the Russian Far East, a move in line with the country's larger strategy to boost the economic development of the area.

Meanwhile, the Far Eastern region breeds plenty of investment opportunities in transport, port, energy and infrastructure, Russian officials said at the meeting, adding that their government is considering amending the tax law to facilitate foreign investment.