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Agreements on 10 projects involving a total investment by China into Russia of US$1 billion have been signed.  

The agreements were signed at Sino-Russian Investment Promotion Week and the third China-Russia Conference on Investment Promotion held in Beijing yesterday.

The event is organized by China's National Development and Reform Commission (NDRC) and Russia's Economic Development and Trade Ministry.

The two countries also signed an investment protection agreement during the 11th regular China-Russia Prime Ministers' Meeting between Premier Wen Jiabao and Russian Prime Minister Mikhail Fradkov.

"The investment protection agreement will provide a solid legal foundation for investment cooperation between the two countries," said Zhang Xiaoqiang, vice-minister of the NDRC.

"The Chinese government encourages Chinese enterprises to invest in Russia under international rules and we also welcome Russian companies to come to China and develop the new market here," said Vice-Premier Wu Yi at the meeting.

Wu also called for government bodies from both countries to ensure a fair and open environment for business. "We'll further optimize the environment to search for reciprocity and equal cooperation," said Wu.

"Economic and trade cooperation is key to the development of bilateral relations," said Russian Deputy Prime Minister Alexander Zhukov. "Both sides are interested in participating in the economic development of the other country."

According to the trade targets set earlier by authorities from the two sides bilateral trade turnover will reach US$60-80 billion by 2010 and China will invest US$12 billion in Russia by 2020.

"Considering the current development it's very possible that the goal of US$12 billion investment from China to Russia will be realized 10 years ahead of schedule," Zhang said.

The six key investment fields in yesterday's agreements are forestry, mineral resources and energy, basic infrastructure, automobiles, textiles and agriculture and fisheries.

"China and Russia have a great demand for each other's markets, technology, resources, talent and commodities," Wu said. "This ensures a huge potential and very promising future for cooperation between the two sides." 

But there's still a lack of communication between enterprises which limited the information flow needed to expand business, noted Zhukov.

The first annual China-Russia Conference on Investment Promotion was first held in Khabarovsk in 2004.

(China Daily November 10, 2006)