A number of large-scale investment projects are improving the economic and trade cooperation and structure between China and Russia.

Currently China's largest investment program in Russia, the Baltic Pearl, is making smooth progress.

Cai Laixing, board chairman of Shanghai Industrial Holding Limited, one of the major investors of the program, said at the ongoing St. Petersburg Week in Shanghai that a conference center conforming to international standards will be completed by the end of this year, while an open square and a part of a residential complex will be ready in the next year.

Launched in March 2006, the Baltic Pearl is the largest ever foreign investment program in the city of St Petersburg.

The real estate program, lasting six to eight years, will cover 208 hectares in the Russian city and was planned with an investment of US$1.35 billion, but before that Shanghai's 12 investment programs in Russia were merely worth US$26.43 million, said Cai.

For a long time, the fact that investment volume is far less than trade volume has weakened Sino-Russian economic and trade relations, said Wang Lie, deputy head of the Shanghai Council for the Promotion of International Trade.

Wang said the two nations should expand their cooperation with the support of the grand strategic investment programs.

Li Li, vice general manager of Shanghai Industrial Holding Limited's Overseas Group, said the Baltic Pearl has attracted Shanghai's largest overseas investment company, China's largest retailing company, China's largest hotel company and Shanghai's biggest real estate company, which has added strength to the investment while reducing risks.

Commercial opportunities have started to become the main spurs for China's investment in Russia.

Assessment of the international commercial organizations show that Russia became the world's sixth most attractive destination for investment by the end of 2005, but it only ranked 17th in 2003.

Quite a number of Chinese private companies are shifting their attentions towards Russia and upgrading their businesses.
Shanghai's largest privately-run World Trade Corporation has made investment in the Sino-Russian Suifenhe-Bogelaniqinei Trade Syntheses.

The corporation will possess a 80,000-square-meter international trade center and 400 luxury hotel suites on the Sino-Russian border.

On the other hand, a breakthrough has also been made in Russia's investment in China.

Russian oil and gas companies have already become China's important cooperation partner. At the same time, the first stage of the Tianwan nuclear power plant in east China's Jiangsu Province, built by Russia, will be completed this year.

According to the longterm blueprint, the bilateral trade of the two nations will reach US$60 to 80 billion by 2010 and in 2020 China's investment in Russia will rise to US$12 billion.

Judging from the current development trend, as the two nations keep signing large-scale investment programs, the targets will be reached ahead of schedule, said Zhao Huashun, director of Russia Research Center of Fudan University.

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