Institutional Mechanisms for the Strategic Partnership Between Russia and China: The Innovative Integration

Abstract

Russia and China have mutual interests in developing cooperation, increasing investment and implementating major projects. Enforcing joint efforts in the development of natural resources in Siberia and the Far East, the development of modern technologies in the petrochemical industry and other fields of science and technology on equal conditions provide new opportunities for the integration of innovative technologies and the implementation of joint science intensive projects. Since 2014 a serious economic growth in the RussianChinese partnership is registered. Russia and China signed a contract for the supply through «Eastern» route 38 billion of cubic metres of Russian natural gas per year for the period of 30 years. To implement the project the construction of the pipeline «Power of Siberia» has started .The pipeline must not only become a channel for the delivery of Russian gas to China and other countries in the region, but also to link Russian gas transportation systems into one single network. The partnership between Moscow and Beijing, raised practically to a new, qualitatively higher level. In addition to large-scale energy and infrastructure projects, it is necessary that enterprises become subjects of the bilateral trade and economic cooperation. Such an approach would create standard market conditions, which will be the main premise and guarantee of of the interaction expansion. Simultaneously with the market-based instruments, Moscow and Beijing are actively using the institutional mechanisms of the strategic partnership. So, currently three intergovernmental commissions are active at the level of deputy prime ministers and 20 branch subcommittees, which directly provide a balance between interests of market participants. The agreement between the Central Bank of Russia and the People’s Bank of China on the use of national currencies in international transactions enables Russian and Chinese companies to use as a currency both the ruble and yen, and the choice depends entirely on preferences of the parties involved. The modernization of the Russian economy suggests updating the industrial base and advanced development of transport infrastructure, a significant portion of this problem can be solved with the participation of China in the development of border areas of Russia. In the future it is possible to create an energy bridge between China and Russia, which will implement the concept of North-East Asia Energy Ring. Russia is pursuing a policy to modernize its production infrastructure and the transition to an innovative development in order to create a domestic competitive products. Chinese centers of industrialization of high technologies are interested in cooperation in the field of research and development activities and of Russian high technologies entering the Chinese market. The scientific, technical and innovative cooperation between Russia and China conforms with the interests of strategic partnership and cooperation between our countries. The innovative development of our countries requires longterm programs, large financial investments, the creation of high-tech zones (science parks) and incubators, establishment of common «technology platforms», encouraging joint investment in the development of high technology, to create the necessary innovation infrastructure.