Problems and Prospects of Economic Cooperation between the People's Republic of China and Post-Soviet Countries

Abstract

The presented study analyzes the problems and prospects of economic cooperation between the People’s Republic of China (PRC) and post-Soviet countries. Examination of China’s economic activity in the former Soviet Union is a relevant scientific task due to the rapid transformation of China’s foreign economic strategy in the context of its growing economic power and in the light of Russia’s economic and political interests in this region. Aim. The study aims to assess the content and practical implementation of China’s strategy of economic penetration into the former Soviet Union and to identify the prospects and risks of in-depth cooperation with China for post-Soviet countries. Tasks. The authors determine the underlying internal economic, political, and social problems of China’s strategy of presence in the former Soviet Union; identify the stages of implementation of China’s strategy for the exploration of the former Soviet Union and the significance of both traditional forms of cooperation (trade, investment, loans) and new formats for its implementation; calculate statistical indices for the analysis of complementarity and trade competition in the development of cooperation between post-Soviet countries and the PRC; assess the efficiency of cooperation between post-Soviet countries and China as a tool for economic modernization and mobilization of new sources of economic growth; identify risks associated with Chinese economic expansion in the former Soviet Union and opportunities for cooperation with China through the lens of the economic interests of post-Soviet countries. Methods. This study uses theoretical and comparative analysis, calculation of statistical indices, observation, synthesis, generalization, description, and graphical modeling. Results. The conducted study shows that China has been consistently and deeply penetrating into the economic activities of post-Soviet countries, driven by the results of a detailed study of economic and geopolitical situation in each of the countries of the former Soviet Union and based on China’s economic needs. The developed strategy allows China to become a key player in the post-Soviet region and the main trading partner, investor, and lender for post-Soviet countries. Conclusions. In-depth cooperation with China carries a number of risks for post-Soviet countries, such as economic dependence, huge debt load, becoming a transport corridor and raw material base, possible environmental degradation due to the transfer of production, declining competitiveness of domestic enterprises following the establishment of a free trade zone. However, the existence of risks arising from China’s implementation of the Belt and Road Initiative in the former Soviet Union does not negate the general conclusion about the feasibility of closer economic cooperation between postSoviet countries and the People’s Republic of China, which can become a factor in the sustainable development of the region’s countries, helping them to solve urgent economic and social problems and to strengthen the security system in the former Soviet Union.