US-China Trade War May Prompt Chinese to Enter Russian Market

Beijing: Beijing-Washington trade war could motivate Chinese investors to take a different look at the Russian market and prompt them to bring their capital to Russia in the near future, Managing Director of the Money and Derivatives Markets at Moscow Exchange Igor Marich said.

“In September, we held the first conference with the Shanghai Stock Exchange in Moscow, which was attended by Chinese brokers as well as infrastructure representatives. They lively debated about the trade war [with the United States] and the challenges that they subsequently face, and they believe that changes in relations with the West are pushing them to take a different look at opportunities in Russia. In my opinion, this opens up new opportunities for us,” Marich told reporters on the sidelines of the China session of the annual Moscow Exchange Forum in Beijing.

Despite the fact that Chinese investors are yet to launch their activities in Russia, the managing director noted that they had a much better understanding of the Russian market at that moment than before.

“We can see the potential and are confident that Chinese capital will come to the Russian market, and in the near future we will already have deals. Our Chinese partners and brokers are also making efforts which will help us see results,” Marich added.

The China session of the annual Moscow Exchange Forum was held in Shanghai and Beijing between November 20-21 and was attended by the representatives of Russian and Chinese investment banks and funds. The event was hosted by Moscow Exchange in cooperation with Shanghai Stock Exchange.

Trade relations between the world’s largest economies took a nosedive in June when US President Donald Trump announced that he would slap China with 25-percent tariffs on $50 billion worth of imported Chinese goods and Beijing responded in kind. In September, Washington announced 10-percent import duties on $200 billion worth of Chinese goods, with the tariffs set to leap to 25 percent starting from January 1, 2019.

AlamulKhabar Business