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Booming Chinese frontier town reveals growing Russian ties – and old divide Booming Chinese frontier town reveals growing Russian ties – and old divide
(about 7 hours later)
At the base of the giant matryoshka, five storeys high, “restaurant” is spelt out in Cyrillic script: PECTOPAH. But the face on the Russian doll is evidently Asian and the welcome to diners scrolls across a screen in Chinese characters.At the base of the giant matryoshka, five storeys high, “restaurant” is spelt out in Cyrillic script: PECTOPAH. But the face on the Russian doll is evidently Asian and the welcome to diners scrolls across a screen in Chinese characters.
Perched on the 2,700-mile border with Russia, the Chinese city of Manzhouli has acquired the flavour of its northern neighbour. Gilded domes gleam and buildings are adorned with white icing flourishes. Shoppers pay for fur coats in roubles and dine on borscht and salmon.Perched on the 2,700-mile border with Russia, the Chinese city of Manzhouli has acquired the flavour of its northern neighbour. Gilded domes gleam and buildings are adorned with white icing flourishes. Shoppers pay for fur coats in roubles and dine on borscht and salmon.
Natasha Masalova travelled for two and a half days to get here from Siberia, “but it’s pretty much like Russia – it looks much the same,” she said. The difference is the range and price of goods. She and her friend are halfway through a three-day trip, but have already blown their money on treats for themselves and children’s clothes to sell back home.Natasha Masalova travelled for two and a half days to get here from Siberia, “but it’s pretty much like Russia – it looks much the same,” she said. The difference is the range and price of goods. She and her friend are halfway through a three-day trip, but have already blown their money on treats for themselves and children’s clothes to sell back home.
Sino-Russian ties have turned this small Inner Mongolian landport into a prosperous trade hub. Now it hopes to benefit from the broader push for closer bilateral ties. China’s premier, Li Keqiang, signed 38 energy, trade and finance agreements in talks with his counterpart, Dmitry Medvedev, in Moscow on Monday, including a 150bn yuan (£15bn) currency swap, and is due to meet Vladimir Putin on Tuesday.Sino-Russian ties have turned this small Inner Mongolian landport into a prosperous trade hub. Now it hopes to benefit from the broader push for closer bilateral ties. China’s premier, Li Keqiang, signed 38 energy, trade and finance agreements in talks with his counterpart, Dmitry Medvedev, in Moscow on Monday, including a 150bn yuan (£15bn) currency swap, and is due to meet Vladimir Putin on Tuesday.
The Ukrainian crisis has given fresh impetus to efforts to forge a closer relationship, as Russia faces sanctions from the west, while China seeks to boost the economy of its north-eastern provinces and assert itself internationally. The question is whether shared economic interests and political convenience can be transformed into a deeper strategic relationship.The Ukrainian crisis has given fresh impetus to efforts to forge a closer relationship, as Russia faces sanctions from the west, while China seeks to boost the economy of its north-eastern provinces and assert itself internationally. The question is whether shared economic interests and political convenience can be transformed into a deeper strategic relationship.
In May, the two countries signed a 30-year natural gas agreement worth an estimated $400bn (£237bn), after a decade of negotiations.In May, the two countries signed a 30-year natural gas agreement worth an estimated $400bn (£237bn), after a decade of negotiations.
Linda Jakobson, visiting professor at Sydney University’s US studies centre, said: “I think the deal moving forward was a sign that the countries have decided they need each other. In the short term, I think we will see more of this kind of closer cooperation.”Linda Jakobson, visiting professor at Sydney University’s US studies centre, said: “I think the deal moving forward was a sign that the countries have decided they need each other. In the short term, I think we will see more of this kind of closer cooperation.”
In the long term, however, Jakobson and other analysts point to challenges such as historical mistrust and differing priorities. “I think it’s still very superficial, this rapprochement.”In the long term, however, Jakobson and other analysts point to challenges such as historical mistrust and differing priorities. “I think it’s still very superficial, this rapprochement.”
Last month, the countries agreed to jointly develop Russia’s Zarubino port, 11 miles (18km) from the Chinese border. Even vegetable exports are getting a boost after Russia imposed a one-year ban on agricultural products from much of the west in retaliation for sanctions.Last month, the countries agreed to jointly develop Russia’s Zarubino port, 11 miles (18km) from the Chinese border. Even vegetable exports are getting a boost after Russia imposed a one-year ban on agricultural products from much of the west in retaliation for sanctions.
Bilateral trade reached $89bn in 2013, according to the People’s Daily, which added that the countries’ aim was for it to reach $100bn by 2015 and $200bn by 2020. It was up by 3.3% year-on-year in the first half of 2014.Bilateral trade reached $89bn in 2013, according to the People’s Daily, which added that the countries’ aim was for it to reach $100bn by 2015 and $200bn by 2020. It was up by 3.3% year-on-year in the first half of 2014.
Russia exported 10m cubic metres of timber through Manzhouli last year, typifying China’s hunger for natural resources. Russia, in turn, has bought crops, textiles and other manufactured goods. Shoppers in Manzhouli tally their purchases: one woman had acquired this winter’s wardrobe for her family – two pairs of shoes each for her four sons – plus a washing machine, television and other domestic appliances.Russia exported 10m cubic metres of timber through Manzhouli last year, typifying China’s hunger for natural resources. Russia, in turn, has bought crops, textiles and other manufactured goods. Shoppers in Manzhouli tally their purchases: one woman had acquired this winter’s wardrobe for her family – two pairs of shoes each for her four sons – plus a washing machine, television and other domestic appliances.
The city wants to attract still more visitors. There are plans to run new rail services from China’s southern manufacturing areas to Poland via Manzhouli, and a 3bn yuan free-trade zone is being built. Reports say it will allow Russians to enter without a visa and stay for up to a month. Last year, 265,000 people crossed into China here: a 14% rise on 2013.The city wants to attract still more visitors. There are plans to run new rail services from China’s southern manufacturing areas to Poland via Manzhouli, and a 3bn yuan free-trade zone is being built. Reports say it will allow Russians to enter without a visa and stay for up to a month. Last year, 265,000 people crossed into China here: a 14% rise on 2013.
Yet Manzhouli shopkeepers complain of a marked drop in customers this year, blaming the state of the Russian economy. Meanwhile, the slowdown in China’s property market could dent timber purchases. Hopes have been dashed before: bilateral trade grew at about 30% a year between 1999 and 2008, when it peaked at almost $57bn before slumping in the financial crisis. And for all the political noises, Chinese banks and investors have so far been reluctant to hand over money as Russia anticipated.Yet Manzhouli shopkeepers complain of a marked drop in customers this year, blaming the state of the Russian economy. Meanwhile, the slowdown in China’s property market could dent timber purchases. Hopes have been dashed before: bilateral trade grew at about 30% a year between 1999 and 2008, when it peaked at almost $57bn before slumping in the financial crisis. And for all the political noises, Chinese banks and investors have so far been reluctant to hand over money as Russia anticipated.
While Russians come to Manzhouli to shop, most Chinese tourists come for a glimpse of their neighbour. Sometimes they cross; more often they simply gaze at it through the imposing State Gate at the border and stop for photographs at Russian Doll Square, dotted with more than 200 of the figures.While Russians come to Manzhouli to shop, most Chinese tourists come for a glimpse of their neighbour. Sometimes they cross; more often they simply gaze at it through the imposing State Gate at the border and stop for photographs at Russian Doll Square, dotted with more than 200 of the figures.
Zhang Wuzhou is on a visit from Beijing but knows the city well. He used to travel through it when he lived in Moscow in the early 90s, as ties between the two countries were revived.Zhang Wuzhou is on a visit from Beijing but knows the city well. He used to travel through it when he lived in Moscow in the early 90s, as ties between the two countries were revived.
“There have been good times and bad times,” said the pensioner, who at 74 is old enough to remember the years when the Soviet Union helped China to rebuild its shattered economy, and the Sino-Soviet split which followed in 1960. “There have been good times and bad times,” said the pensioner, who at 74 is old enough to remember the years when the Soviet Union helped China to rebuild its shattered economy, and the Sino-Soviet split that followed in 1960.
“Now, because of the Ukraine crisis and the western countries’ sanctions, Russia is getting closer and closer to China ... It’s the best time for Sino-Russian ties,” he said.“Now, because of the Ukraine crisis and the western countries’ sanctions, Russia is getting closer and closer to China ... It’s the best time for Sino-Russian ties,” he said.
Li Jiacheng, a lecturer at Liaoning University’s school of international studies, said the two countries each took what they needed from the relationship: “Russia looks to the east and tries to, with the help of China, break through the sanctions of the west, while China needs to use Russia’s help to counterbalance the US’s strategic rebalance [to the Asia-Pacific region].”Li Jiacheng, a lecturer at Liaoning University’s school of international studies, said the two countries each took what they needed from the relationship: “Russia looks to the east and tries to, with the help of China, break through the sanctions of the west, while China needs to use Russia’s help to counterbalance the US’s strategic rebalance [to the Asia-Pacific region].”
China has attacked sanctions against Russia and the countries often vote the same way at the UN security council – or one will abstain to avoid overtly opposing the other.China has attacked sanctions against Russia and the countries often vote the same way at the UN security council – or one will abstain to avoid overtly opposing the other.
Even so, deep concerns endure in the relationship.Even so, deep concerns endure in the relationship.
“Most of them come from the shadow of the past,” said Li. “There are plenty of unpleasant episodes between China and Russia in history.”“Most of them come from the shadow of the past,” said Li. “There are plenty of unpleasant episodes between China and Russia in history.”
Russia was among the foreign powers that carved up China in the latter half of the 19th century, for instance. “Besides, two neighbouring countries, both great powers, will almost certainly secretly worry about the other’s strength and influence,” said Li.Russia was among the foreign powers that carved up China in the latter half of the 19th century, for instance. “Besides, two neighbouring countries, both great powers, will almost certainly secretly worry about the other’s strength and influence,” said Li.
Russia’s far east covers about a third of the country’s territory but it has only 6 million inhabitants, while China’s three neighbouring provinces have 110 million.Russia’s far east covers about a third of the country’s territory but it has only 6 million inhabitants, while China’s three neighbouring provinces have 110 million.
Li Xing, a Russian studies expert at Beijing Normal University, believes no great powers can have complete mutual trust. That does not indicate a fundamental problem, he said: “It is normal to have different interests in a bilateral relationship.”Li Xing, a Russian studies expert at Beijing Normal University, believes no great powers can have complete mutual trust. That does not indicate a fundamental problem, he said: “It is normal to have different interests in a bilateral relationship.”
Jakobson thinks the issues run deeper: while both are authoritarian, their values are not the same. And while China may not like Japan or the US, it respects their achievements.Jakobson thinks the issues run deeper: while both are authoritarian, their values are not the same. And while China may not like Japan or the US, it respects their achievements.
“So many Chinese analysts, if I prod them, will respond: ‘What have we got to learn from Russia?’” she said.“So many Chinese analysts, if I prod them, will respond: ‘What have we got to learn from Russia?’” she said.
Additional research by Luna LinAdditional research by Luna Lin