Batmanova V.V., Tikhonovich E.A., Chigareva T.V., Lyudai Yu. Tendencies and Prospects of China’s Investments into Russian Regions

Victoria V. Batmanova
Volgograd State University, Volgograd, Russian Federation

Ellada А. Tikhonovich
Volgograd State University, Volgograd, Russian Federation

Tatyana V. Chigareva
Volgograd State University, Volgograd, Russian Federation

Yuan Lyudai
Volgograd State University, Volgograd, Russian Federation

Abstract. The article examines the growing role of China in global investments. During 15 years of economic development of the country, the People’s Republic of China (PRC) became the second country in the world acting as a recipient of investments and the second (third) investor sending its funds abroad. After the maximum volume of foreign direct investments (FDI) from the PRC in 2016, 2017 was marked by the drop of FDI. This is connected with China’s control over FDI withdrawal from the country, increasing protectionism from other countries and the aggravating situation for Chinese investors in foreign markets.
The drop of investments is connected with a number of reasons. On the one hand, the government of China has
strengthened the control over the capital drain from the country in the form of investments. Another reason is the growth of trade protectionism. The complicating external conditions for Chinese investors in connection with the policy of the USA are also worth paying attention to.
The 19th National Congress of China mentioned “Belt and Road Initiative” (BRI) strategy as the main plan for organizing the investment process in the nearest future. Today the effort concentration process (investments into infrastructure, interaction with the countries along the new economic silk belt) is observed. Russia and its regions are included into the Northern corridor of the Belt and Road Initiative and can leverage the advantages of the cooperation with China. China has already invested funds into perspective projects in Russian regions and in the nearest future they are expected to grow within the Belt and Road Initiative.

Key words: China, foreign direct investments (FDI), economic environment, “Belt and Road Initiative” (BRI), outward direct investments, region.

Citation. Batmanova V.V., Tikhonovich E.А., Chigareva T.V., Lyudai Yu., 2019. Tendencies and Prospects of China’s Investments into Russian Regions. Regionalnaya ekonomika. Yug Rossii [Regional Economy. South of Russia], vol. 7, no. 2, pp. 35-45. (in Russian). DOI: https://doi.org/10.15688/re.volsu.2019.2.4

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