How does China fare on the Russian market? Implications for the European Union

Alicia Garcia-Herrero () and Jianwei Xu ()
Additional contact information
Alicia Garcia-Herrero: Bruegel, Brussels, Belgium
Jianwei Xu: Bruegel, Brussels, Belgium
Authors registered in the RePEc Author Service: Alicia Garcia Herrero

Russian Journal of Economics, 2019, vol. 5, issue 4, 385-399

Abstract: This paper reviews China's growing economic ties with Russia. We conclude that such ties have strengthened in terms of trade and cross border lending, but less in terms of Chinese foreign direct investment in, or portfolio flows to, Russia. Meanwhile, Europe remains Russia's largest trading partner, lender and investor. In relation to trade, China seems to have become more of a competitor for the EU on Russia's market when we appraise China's increasing export share and the increasing value added of its exports and previous empirical analysis at the product level. Increasing competition between European and Chinese exports should not be surprising as there is ample evidence that China has been moving fast up the technology ladder during the past few decades. Competition over investment and lending is more limited but the situation could change rapidly with China and Russia giving clear signs of a stronger-than-ever strategic partnership.

Keywords: trade; investment; cross-border lending; Russia; China; European Union (search for similar items in EconPapers)
JEL-codes: F10 F21 F50 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Working Paper: How does China fare on the Russian market? Implications for the European Union (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:arh:jrujec:v:5:y:2019:i:4:p:385-399

DOI: 10.32609/j.ruje.5.49346

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