Putin asks Xi Jinping to build factories in Russia: China refrains for now

Russian ruler Vladimir Putin has stated during talks with Chinese leader Xi Jinping that Russia will welcome Chinese production facilities on its territory.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Quote from Putin: "Russia has become the world's main importer of Chinese cars. Meanwhile, we welcome the establishment and transfer of Chinese industrial expertise in our country."

Details: Putin added that Moscow is ready to provide "comfortable conditions for Chinese companies to operate in Russia" and described Russo-Chinese relations as "a benchmark of interstate communication in the 21st century".

However, The Moscow Times noted that although Beijing has become Moscow's largest trading partner since the Kremlin launched its full-scale war against Ukraine, it has so far refrained from significant investment in the real sector of the Russian economy.

Statistics from the Russian Central Bank show that over the past three years, there has been no significant capital inflow from countries the Kremlin considers friendly.

On the contrary, the total volume of foreign direct investment in Russia has continued to decline, falling by US$138 billion in 2022, US$80 billion in 2023 and a further US$63 billion last year.

Since the start of the full-scale invasion, Russia has lost 57% of its foreign investment, with the total volume dropping to US$216 billion – the lowest level since 2009, according to the Russian Central Bank.

Background: Kyzyl-Tashtygsky GOK, one of Russia's largest mining and processing plants and owned by China's Zijin Mining Group, is suspending operations due to difficulties with financial transactions.

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