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Presented by Tonella & Hayden

IntroductionDiplomatic relations established 2nd Oct 1949

Similarities structures

Common enemy

China needed Soviet help to counter US

Relations in 1950’s Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance 14 Feb

1950

Korea War 25 June 1950 – 27 July 1953

In 1953 Stalin dies

In 1954 Soviet leader Nikita Khrushchev began his first visit to China

Between 1954-1957 USSR provides lots of aid to China

i. 1954 China and the Soviet Union set up the Joint Commission for Cooperation in Science and Technology, met annually until 1963

ii. Soviet Union provided aid for 156 major industrial projects concentrated in mining, power generation, and heavy industry

Relations In 1950’sWith Soviet aid Mao was still not totally independent

Khrushchev wanted to setup radio station along China's coast

In 1958 Khrushchev visited China to renew relations but Mao's nuclear demands had strained relations

1959 Khrushchev visited China after going to us accused him of being an American stooge

All the USSR experts were withdrawn

Personal AnimositiesMao felt Stalin showed himself to be superior to him in his visit to

Moscow in 1950

When Khrushchev visited China in 1958

Khrushchev abused Mao as an ‘Asian Hitler’ and a ‘living corpse’

Mao called Khrushchev a ‘redundant old boat’

Cause For Split In 1919 Russia took over Outer Mongolia In 1945 soviet union stripped Manchuria of $

200 million*

Soviet aid was a loan & not a gift Beijing paid for the Soviet military aid received

to fight Korean War 25 Feb 1956 Khrushchev made the ‘secret

speech’

Relations During 1960’sUSSR didn’t support China in 1962 war against India

With great leap forward with in 3 years he wanted to catch up With great leap forward with in 3 years he wanted to catch up with Britain and US which was completely unrealisticwith Britain and US which was completely unrealistic

1963 Limited Test Ban Treaty 1964 China got nuclear

Mao found to hard to maintain domination with failure of great Mao found to hard to maintain domination with failure of great leap forward so started cultural revolution through which he leap forward so started cultural revolution through which he wanted to destroy bureaucracy and establish himselfwanted to destroy bureaucracy and establish himself

In 1969 tension along their vast border increased

Ussuri River Chinese people stared crossing Siberia side sparsely populated

March 1969 battle started

During 1970’s Oct 1969 Soviet premier visited Beijing to stop a potential war

Mao realized Moscow wasn't going to take them lightly and wanted better relations with US

In 1971 China invited US for a table tennis match

In the 1970s, China began to improve relations with the West to counter Soviet political and military pressure in Asia. After Mao's death in 1976, the Soviet Union again sought to improve relations with China. But polemics were renewed in 1977, and tension between two Southeast Asian client states, Cambodia and Vietnam, further damaged relations. In 1979 China invaded Vietnam to defend Cambodia from the Vietnamese incursion of 1978. The Soviet Union condemned the invasion and increased arms shipments to Vietnam. Competing goals in Southeast Asia remained a key issue for nearly a decade.

A new set of bilateral negotiations began in 1979, but the Chinese ended talks shortly after the Soviet Union invaded Afghanistan in late 1979. Thereafter, China added withdrawal of Soviet troops from Afghanistan to its conditions for renewing the two nations' 1950 friendship treaty.

Relations During 1980’sTalks on the Sino-Soviet border situation resumed in late

1982, but relations remained static

In 1988 two major obstacles were removed when the Soviet Union committed itself to removing troops from Afghanistan, and Vietnam did likewise for Cambodia

The Sino-Soviet summit meeting of June 1989 was the first since the Khrushchev regime.

Relation’s During 1990’s In the early 1990s, relations got a boost from China's interest in renewed weapons imports from Russia

and other forms of military cooperation. In 1992 an exchange of visits by high defence officials established defence ties and included the signing of a major arms technology agreement with a reported value of US$1.8 billion. In 1993 another series of defence exchange visits yielded a five-year defence cooperation agreement (see Foreign Arms Sales; China, ch. 9). A strategic partnership, signed in early 1996, significantly strengthened ties.

In December 1992, Yeltsin went to China and signed a nonaggression declaration that theoretically ended what each called the other's search for regional hegemony in Asia. Another treaty included Russian aid in building a nuclear power plant, the first such provision since Sino-Soviet relations cooled in the late 1950s. Chinese party chairman Jiang Zemin visited Moscow in September 1994 and concluded a protocol that resolved some border disputes and generally strengthened bilateral ties. During Yeltsin's visit to China in April 1996, both sides described their relationship as evolving into a "strategic partnership," which included substantially increased arms sales. At the April meeting, new agreements made progress toward delineating and demilitarizing the two countries' 3,645 kilometers of common border. Although border security and illegal Chinese immigration into the Russian Far East were controversial issues for Russian regional officials, Yeltsin demanded regional compliance with the agreements. Russia has respected China's claim that Taiwan is part of its territory, although Russia's trade with Taiwan increased to nearly US$3 billion in 1995 and Russia planned to open trade offices on the island in 1996.

In 1994-96 China emerged as a major market for Russian arms, having bought several dozen Su-27 fighter aircraft and several Kilo-class attack submarines. Russia also had a positive trade balance in the sale of raw materials, metals, and machinery to China. A series of high-level state visits occurred in 1994 and 1995. Both countries pursued closer ties, in each case partly to counterbalance their cooling relations with the United States. In March 1996, Russia announced that it would grant China a loan of US$2 billion to supply Russian nuclear reactors for power generation in northeast China, and further cooperation was proposed in uranium mining and processing, fusion research, and nuclear arms dismantlement.

1991 Sino-Soviet Border Agreement??????

Relations During 2000’s Put border thingy here only???????????

Trade History In the 1920s and 1930s, China typically accounted for only 3–5% of the

foreign trade of the Soviet Union

In the 1950s, China’s share in Soviet Union’s foreign trade was 15–20%

The share of the Soviet Union grew rapidly to account for more than half of China’s foreign trade, and it was still about 40% at the start of the 1960s

After the border conflict in 1969 there was practically no trade between Russia and China

1985 when President Gorbachev came to power trade improved but remained modest

In the last years of the Soviet Union China’s share of its foreign trade was less than 2%. The share of the Soviet Union in China’s foreign trade fell below 10% in the mid-1960s, and a quarter of a century later, just before the Soviet Union broke up, the share was about 3%.

Trade HistorySoviet Union in the 1990s, their economic relations were

burdened by Russia’s unstable conditions and poor economic performance

Chinese economy had yet to reach such a critical mass as would lead to deeper cooperation in respect of commodity exports

Russia’s descent into a full-scale financial crisis in 1998

At the turn of the millennium China’s strong growth began to have a visible impact on the global economy through demand for energy and raw materials

Trade Relations Russian exports quadrupled from $5 billion at the beginning of the

2000s to $20 billion in 2010

In 2010, China was Russia’s 5th largest export market with a 5% share

China’s share in the Russian imports increased from 3% in 2000 to 17% in 2010

In the latter part of the last decade, robust import growth turned Russia’s trade balance with China into deficit in spite of a rise in commodity prices. Only in 2009, when the global financial crisis hit Russia’s imports hard, did the trade between Russia and China move more or less into balance. In 2010, the Russian trade deficit with China was some $19 billion, even as the total Russian foreign trade was almost $170 billion in surplus

China Russia Difference

China

China’s nominal GDP was nearly $5900 billion in 2010

China’s share increased from less than 6% to about 14%

Russia

Russia’s nominal GDP was $1500 billion in 2010

Russia’s share of global output has remained around 3% 2010

China’s Share In Russian Trade

Chinas Share In Russia Foreign Trade in %

Sourc

e:

UN

Com

trade

Present Trade In 1st quarter of 2012 trade between the two countries

grew by 33% hitting US$21.49 billion

China is already Russia's main source for imports, while Russia is China's 8th largest trading partner

China exports mainly mechanical and electrical products, high-tech products, and textiles to Russia

Imports of motor vehicles have also risen rapidly causing concerns among Russian carmakers

While energy and raw materials go the other way

China has become a major player in the Russian market, Russia’s role in the Chinese economy, with the exception of energy has remained marginal

Regional Comparison of China’s OFDI Stock (2005 -2010)

China’s Trade ????

?????

Aggregated Data on China’s Outward Direct Investments over USD 100 Million, 2005 – 2011 (USD Billion)

Data Source: Heritage Foundation

North North America: America:

49.1649.16

Latin America: Latin America: 48.8348.83

Europe: Europe: 42.6642.66

Africa: Africa: 37.2137.21

Australia: Australia: 41.5241.52

Asia: Asia: 86.6986.69

Amur Region

Ussuri River

Beijing

China Russia Defense China needed Russians arms and technical support to upgrade its

defence capability (China had no choice because of the EU embargo 1989)

Russian arms exports to China peaked in 2005 and have since fallen rapidly from more than 60% to less than 7%

The collapse of arms exports is due to Russia’s reluctance to sell the latest military technology

China’s own advances in the field of military production and technology

The Kremlin aware that Chinese designers had been busy copying Russian weapons with the potential for lower-cost weaponry

▪ When they patched up in 1980’s

▪ Scenario ion 1990’s

▪ Border issues

▪ And in 2000’s

China & Russia’s Far EastFar East region stretches over 40% of Russian territory

Russia fears possible takeover demographically and economically

China felt attracted to Moscow’s Far East since tsarist’s took over cities such as Khabarovsk and Vladivostok, in the nineteenth century

China had leased considerable parcels of land in the Birobidzhan and Khabarovsk regions to Chinese farmers*

China invested 3 times as much in the Russian Amur and Birobidzhan regions as Moscow*

Russia has started to take steps although not openly mentioned as aimed to counter Chinese influence

Threats To Relationswith regard to China’s future expansion into sparsely

populated Far East

The Kremlin was also aware that Chinese designers had been busy copying Russian weapons, which now has the potential to upset Moscow’s position in the market for lower-cost weaponry

China & Central AsiaThis puts Russia on the defensive in Central Asia, its

privileged sphere of influence

Booming economy, growing population and increasing need for energy, China needed Central Asia for energy security and for expanded trade

Russia is loosing ground here but is unable to compete with China

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China Russia Organizational ????

Shanghai Cooperation Organization (SCO)

i. The S.C.O. provides cooperation in political, military, economic, energy and cultural fields

ii. in 2005 & 2007 the SCO conducted large military exercises, called ‘Peace Missions’

BRICS

i. China, emphasized economics, Moscow stressed an assertive foreign policy

ConclusionCorner-stone of cooperation primarily focused on an anti-Western

(US)stance

Joint declarations in crises such as Syria, as part of mutual interest in sovereignty & national interest

But disputes, such as - Russia’s support of (Georgian) separatism, the option of military intervention in Kyrgyzstan, and China’s increasingly dominating role in Central Asia

Russo–Chinese economic cooperation mainly in the areas of energy and arms

the joint exercises served more to gain insight into the military capabilities of the other

Russia considered protection of its Far East region as a main concern

Conclusion

BibliographyRussia’s economic policy and Russia-China economic

relations by Jouko Rautava

Russian–Chinese Security Relations: Moscow’s Threat from the East? by Marcel de Haas

Russia-China Economic Relations: An Analysis by Sujit Kumar

True Partners? How Russia and China see each other by Dmitri Trenin