The Impact of the EEU and B&R Initiative on the Modernization of the Economic Development Models of Russia and China

Stepanov N.S.


The development of the world economy is currently increasingly influenced by the regional economic international organization of Eurasian Economic Union (EEU), which includes the Russian Federation, and the Chinese initiative «Belt and Road» (B&R). An important component of their interaction is the harmonization and conjugation of the activities of these two undertakings, which bring both new opportunities and certain risks associated with ambiguous perception, and sometimes hindering the implementation of individual projects. In this article, an attempt is made to analyze the emerging confusing linkage of problems along this thorny path. It is emphasized that the EEU and the B&R do not compete with each other but strive to complement each other, guided by various theoretical concepts. So the ideology of the EEU is based on protecting the domestic market of the countries included in this organization, while the paradigm of the Chinese initiative implies the creation of voluminous free trade zones. Attention is also paid to trade and economic relations and the complicated transfer of payments in the banking sector between the Russian Federation and the PRC, the system of public-private partnerships, exhibition activities, the export of Russian timber to China, the Tumangan project, which involves the Russian Federation, China, Mongolia and both Korean states – DPRK and South Korea. China’s relations with the post-Soviet countries and the level of strategic partnership between Russia and China in the economy and geopolitics are described in detail. When the EEU was created, it was initially supposed to combine its activities with the B&R; at the moment, the division of labor between the two seems to be taking on new forms. China prioritizes economic cooperation and the implementation of infrastructure projects, while Russia, as a military superpower, concentrates its actions in the field of security. This, however, does not mean a weakening of the economic activity of the Russian Federation in the countries of Central Asia or a decrease in the role of PRC in maintaining collective security. Russia does not plan to make commitments that could turn cooperation with China into an anti-American alliance but will continue to use all the levers, for example, the Shanghai Cooperation Organization, to strengthen the collective security system, while making efforts to improve harmonization between the two countries by connecting the EEU with the Chinese B&R initiative.


EEU; B&R; harmonization; interfacing; Tumangan project; infrastructure project; accelerated modernization; strategic partnership; forest industry.

DOI: 10.31249/rsm/2020.03.07

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