The Eurasian Economic Union and China agree to help each other
At the summit of the Shanghai Cooperation Organization, held in the Chinese city of Qingdao, the attendees discussed amongst other things specific steps to facilitate the interaction of the countries of the Eurasian Economic Union (EAEU) and China, in particular the country’s Belt and Road Initiative. Recently the EAEU has started to resemble a fully functional supranational association. The participating countries reached agreement on a mutual reduction in tariffs and also on an increase in customs duties on goods from countries that are not members of the Union. Consequently, the products of the participating countries have become more competitive. And now the EAEU is talking to China as an organisation, and not as disparate countries.
China and the EAEU reached agreement on the establishment of a free trade zone and further interaction. The projects of the EAEU and the Belt and Road Initiative will be developed jointly without encroaching on each other’s interests.
Bilateral relations and projects were also discussed at the summit. The main projects are the Moscow-Kazan high-speed railway, the Western Europe-Western China expressway connecting Lianyungang and Saint Petersburg, and also the financing of hydropower projects in Russia’s Far East through Chinese investments.
Russia is creating a Direct Investment Fund with China Development Bank with a capital of USD 10 billion for joint cross-border projects. It was also disclosed that China Development Bank had disbursed a loan of USD 850 million to Russia’s Vnesheconombank for the creation of an innovation fund. The fund will focus on transport infrastructure projects.
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