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Right time for China to boost investment in Russian Far East

Xinhua | Updated: 2013-06-22 10:27

Free competition from South Korea, Japan

As the Far East embraces foreign investors as a whole, South Korea and Japan could become major rivals to China, Hu Bing, president of the Russia-China Investment Fund, told Xinhua.

"South Korea has invested quite a few projects, with a focus on manufacture and agriculture, in the Far East, especially in Vladivostok," Hu said.

Japan has not invested as much as South Korea but it has been interested in the agriculture and livestock industries and was considering setting up operations there.

China, Hu said, had its own advantages as the two countries share a long borderline.

Moreover, the RCIF, a 2-billion-U.S.-dollar joint fund established when President Vladimir Putin visited China last June, could serve as a fundamental platform for firm investment growth into the Far East.

More practical efforts needed

Apart from verbal support of the leadership, plenty of practical efforts had to be deployed, the economists said.

"The prime work is to deepen mutual understanding through concrete dialogues," Yu Ping said.

Few flights from China to the Far East are currently available, making it inconvenient to conduct frequent contacts.

The infrastructure in the vast area, which has a population of some six million people, was hardly satisfying, Yu said. The situation, Yu said, provides opportunities for Chinese companies to participate in construction in the region.

Cai Guiru, chairwoman of the Chinese Chamber of Commerce in Russia, said Chinese companies should maintain a long-term perspective.

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