The Moscow Times has a couple of interesting stories about China and Russia. The first one to catch my eye was this one about Rusnano (Russian Nanotechnologies Corporation) and its invitation to create a joint China-Russian nanotechnology investment fund. From a Sept. 9, 2014 Moscow Times news item,
Rusnano has invited Chinese partners to create a joint fund for investment in nanotechnology, Anatoly Chubais, head of the state technology enterprise, was quoted as saying Tuesday [Sept. 9, 2014] by Prime news agency.
Russia is interested in working with China on nanotechnology as Beijing already invests “gigantic” sums in that sphere, Chubais said.
Perhaps the most interesting piece of news was in the last paragraph of that news item,
Moscow is pivoting toward the east to soften the impact of Western sanctions imposed on Russia over its role in Ukraine. …
Another Sept. 9, 2014 Moscow Times news item expands on the theme of Moscow pivoting east,
Russia and China pledged on Tuesday [Sept. 9, 2014] to settle more bilateral trade in ruble and yuan and to enhance cooperation between banks, First Deputy Prime Minister Igor Shuvalov said, as Moscow seeks to cushion the effects of Western economic sanctions [as a consequence of the situation in the Ukraine].
Russia and China pledged on Tuesday to settle more bilateral trade in ruble and yuan and to enhance cooperation between banks, First Deputy Prime Minister Igor Shuvalov said, as Moscow seeks to cushion the effects of Western economic sanctions.
For China, curtailing [the] dollar’s influence fits well with its ambitions to increase the clout of the yuan and turn it into a global reserve currency one day. With 32 percent of its $4 trillion foreign exchange reserves invested in U.S. government debt, Beijing wants to curb investment risks in dollars.
China and Russia signed a $400 billion gas supply deal in May , securing the world’s top energy user a major source of cleaner fuel and opening a new market for Moscow as it risks losing European clients over the Ukraine crisis.
This is an interesting turn of events given that China and Russia (specifically the entity known as Soviet Union) have not always had the friendliest of relations almost going to war in 1969 over territorial disputes (Wikipedia entries: Sino-Soviet border conflict and China-Russian Border).
In any event, China may have its own reasons for turning to Russia at this time. According to Jack Chang of Associated Press (Sept. 11, 2014 article on the American Broadcasting News website), there is a major military buildup taking place in Asia as the biggest defence budget in Japan’s history has been requested, Vietnam doubles military spending, and the Philippines assembles a larger naval presence. In addition, India and South Korea are also investing in their military forces. (I was at a breakfast meeting [scroll down for the speaker’s video] in Jan. 2014 about Canada’s trade relations with Asia when a table companion [who’d worked for the Canadian International Development Agency, knew the Asian region very well, and had visited recently] commented that many countries such as Laos and Cambodia were very tense about China’s resurgence and its plans for the region.)
One final tidbit, this comes at an interesting juncture in the US science enterprise. After many years of seeing funding rise, the US National Nanotechnology Initiative (NNI) saw its 2015 budget request shrink by $200M US from its 2014 budget allotment (first mentioned here in a March 31, 2014 posting).
Sometimes an invitation to create a joint investment fund isn’t just an invitation.