The Straits Times：Russia, China relations 'at new high'

Russia, China relations 'at new high'

Chinese President Hu Jintao and visiting Russian President Vladimir Putin have both sought to allay concerns, particularly from the West, over the impact of the increasingly friendly China-Russia ties.

Meeting at formal talks yesterday in the Chinese capital, both leaders said current ties were at a new high and listed new areas for closer cooperation, such as trade, investment and tourism.

China's state broadcaster CCTV last night reported Hu as saying: "Improving relations between China and Russia will not only be good news to both countries, but also to the world."

His comments mirrored remarks from Putin in a self-penned article published yesterday in the Chinese Communist Party mouthpiece, the People's Daily, as he kicked off a three-day state visit to Beijing.

"Our partnership is not directed against anyone, but is about construction and strengthening justice and the democratic foundations in international life," he said. "This partnership is thus something needed in today's world."

Putin was also quoted as saying during his meeting with Hu that close dialogue and coordination between China and Russia on major issues would "help build a new world order that is just and fair".

Observers have noted that the warming Sino-Russian ties are aimed at creating an alternative to the Western-dominated global power structure.

They point to how the two countries have, of late, moved in sync on international affairs, such as using their veto powers as permanent members of the United Nations Security Council to block Western intervention over Syria's crackdown on dissent.

Yesterday, both leaders urged the international community to support UN/Arab League envoy Kofi Annan's peace plan on Syria.

The two sides have clearly hit a purple patch in their ties, a far cry from the 1960s when they had gone to war over border disputes.

Bilateral trade hit a record US$83.5 billion last year, with new targets set at $100 billion by 2015 and $200 billion by 2020.

Still, President Putin had high hopes for the visit - his first China trip since he returned to power for a historic third term last month after a gap of four years.

The Russian strongman is also in Beijing to attend the annual summit of the security grouping, the Shanghai Cooperation Organisation, today and tomorrow.

"An old Chinese saying states that common hopes require common efforts. We are ready for these common efforts in the interests of our countries and peoples," he wrote in the article.

High on the agenda for his visit were economic, energy and foreign policy cooperation, with close to 20 diplomatic and business pacts expected to be inked.

A US$1 billion investment fund - a joint venture between Chinese sovereign wealth fund China Investment Corp and Russian Direct Investment Fund (RDIF) - was also unveiled yesterday.

Its first investment is in a Russian forestry company, said RDIF chief executive Kirill Dmitriev.

He said about 70 per cent of the fund's investments will be in Russia and up to 30 per cent in China.

Despite the close ties, there remain challenges for the two countries to overcome, said foreign policy expert Yang Cheng from the East China Normal University.

He cited mutual misperceptions such as how some Russians fear that China sees their country as just an energy supplier while some Chinese view Russia as an unreliable partner.

One solution is to seek new areas of collaboration that would not reap direct benefits for each other, but for the greater good, said Professor Yang.

Such a mindset change is also "necessary mental and intellectual preparation for both China and Russia to become mature, great powers", he said.