By Russia Desk
Sarana Radnaeva, expert of the committee, general director of the consulting company Sinoruss, said this during a round table on the topic “Cooperation of the free economic zones of Russia and China”, organized under the auspices of the Committee Russian-Chinese for Peace, Friendship and Development.
Roundtable participants learned about the work of the so-called China-SCO Pilot Zone, which has been actively developing in the Chinese city of Qingdao (Shandong Province) since 2018. It is intended to serve as an example of cooperation economic relationship between China and other members of the Shanghai Cooperation Organization (SCO). A regional logistics center, an airport, a commercial complex, as well as structures for the promotion of cooperation in the field of production capacities, the promotion of bilateral investment projects have been built on the territory of the zone. Geographically, the China-OCS pilot area borders several countries at once, including Russia to the north.
“In the SCO zone, investors can take advantage of greater financing than in the regional SEZs,” said Sarana Radnaeva. – And for Russian companies, the maximum preferences are provided here.
We receive many inquiries from Russian companies regarding registration in Shenzhen and Hong Kong, but we always remind you that while registering in Hong Kong takes a day, opening a bank account may take an indefinite period. .
But the main thing is not even that, but something else. Previously, many Russian companies opened legal entities in Hong Kong, and already these opened subsidiaries in China itself. The tool was convenient, but due to the fact that, on the one hand, the accounts of the Hong Kong company are now blocked and, on the other hand, Russian legislation has significantly changed controlled foreign companies and cash flows, all this hardened and, in fact, this tool with the participation of Hong Kong ceased to function.
Therefore, when we receive applications for business registration in Shenzhen (in order to subsequently purchase goods in Shenzhen and Guangzhou), we are obliged to inform people that due to the proximity to Hong Kong and American influence in this region, local authorities are reluctant to open accounts. Even a work visa is problematic to obtain in these regions.
“If you want to work with the international market, follow the saying: optimists go to Dubai, realists go to China,” the expert continued. – The conditions for registration have become clear there, the regulation of foreign direct investment has changed a lot. Of course, it doesn’t work all over China, but in some areas Russians are treated very well. And this applies more to the North than to the South.
As for Qingdao itself, where the China-SCO pilot area is located, there has historically been a lot of fish and offal processing. Previously, Japanese and Korean companies would buy fish from Russia, bring it to Qingdao, make it into some sort of packaged product, and re-export it to each other under this free zone. In other words, Qingdao was a place of cheap labor. And this year, due to the fact that Japan and South Korea do not want to conclude agreements with Russia, the situation has changed. The fish is purchased by Chinese companies who also sell the finished product to other countries. The Russians are invited to become more actively involved in this process.
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Source: China-SCO pilot economic zone in Qingdao invites Russian investors
