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Presented by Tonella & Hayden

Introduction
Diplomatic relations established 2nd Oct 1949 Similarities structures

Common enemy

China needed Soviet help to counter US

Relations in 1950s
Sino-Soviet Treaty of riendship! "lliance and #utual "ssistance 14 eb 19$% &orea 'ar 2$ (une 19$% ) 2* (uly 19$+

,n 19$+ Stalin dies

,n 19$4 Soviet leader -i.ita &hrushchev be/an his first visit to China

0et1een 19$4-19$* USS2 provides lots of aid to China i3 19$4 China and the Soviet Union set up the (oint Commission for Cooperation in Science and Technolo/y! met annually until 194+ ii3 Soviet Union provided aid for 1$4 ma5or industrial pro5ects concentrated in minin/!

Relations In 1950s
'ith Soviet aid #ao 1as still not totally independent &hrushchev 1anted to setup radio station alon/ China6s coast ,n 19$7 &hrushchev visited China to rene1 relations but #ao6s nuclear demands had strained relations 19$9 &hrushchev visited China after /oin/ to us accused him of bein/ an "merican stoo/e "ll the USS2 e8perts 1ere 1ithdra1n

Personal Animosities
#ao felt Stalin sho1ed himself to be superior to him in his visit to #osco1 in 19$%

'hen &hrushchev visited China in 19$7

&hrushchev abused #ao as an 9"sian :itler; and a 9livin/ corpse;

#ao called &hrushchev a 9redundant old boat;

Cause For S lit

,n 191 9 2ussia t oo. ,n 194 $ soviet u nion stripp million = ed #anch uria of < 2 %% Sovie t aid 1as a loan > n ot a /ift over Oute r #on/olia

0ei5in / paid for the Soviet &orean ' military ai ar d

2$ e b 19$4 &h rushchev made the 9secret sp eech;

received t o fi/ht

Relations !urin" 19#0s

USS2 didn;t support China in 1942 1ar a/ainst ,ndia 'ith /reat leap for1ard 1ith in + years he 1anted to catch up 1ith 0ritain and US 1hich 1as completely unrealistic 194+ ?imited Test 0an Treaty 1944 China /ot nuclear #ao found to hard to maintain domination 1ith failure of /reat leap for1ard so started cultural revolution throu/h 1hich he 1anted to destroy bureaucracy and establish himself ,n 1949 tension alon/ their vast border increased Ussuri 2iver Chinese people stared crossin/ Siberia side sparsely populated #arch 1949 battle started

!urin" 19$0s
Oct 1949 Soviet premier visited 0ei5in/ to stop a potential 1ar #ao reali@ed #osco1 1asn6t /oin/ to ta.e them li/htly and 1anted better relations 1ith US ,n 19*1 China invited US for a table tennis match

,n the 19*%s! China be/an to improve relations 1ith the 'est to counter Soviet political and military pressure in "sia3 "fter #ao6s death in 19*4! the Soviet Union a/ain sou/ht to improve relations 1ith China3 0ut polemics 1ere rene1ed in 19**! and tension bet1een t1o Southeast "sian client states! Cambodia and Aietnam! further dama/ed relations3 ,n 19*9 China invaded Aietnam to defend Cambodia from the Aietnamese incursion of 19*73 The Soviet Union condemned the invasion and increased arms shipments to Aietnam3 Competin/ /oals in Southeast "sia remained a .ey issue for nearly a decade3 " ne1 set of bilateral ne/otiations be/an in 19*9! but the Chinese ended tal.s shortly after the Soviet Union invaded "f/hanistan in late 19*93 Thereafter! China added 1ithdra1al of Soviet troops from "f/hanistan to its conditions for rene1in/ the t1o nations6 19$% friendship treaty3

Relations !urin" 19%0s

Tal.s on the Sino-Soviet border situation resumed in late 1972! but relations remained static

,n 1977 t1o ma5or obstacles 1ere removed 1hen the Soviet Union committed itself to removin/ troops from "f/hanistan! and Aietnam did li.e1ise for Cambodia

The Sino-Soviet summit meetin/ of (une 1979 1as the first since the &hrushchev re/ime3

Relations !urin" 1990s

,n the early 199%s! relations /ot a boost from China6s interest in rene1ed 1eapons imports from 2ussia and other forms of military cooperation3 ,n 1992 an e8chan/e of visits by hi/h defence officials established defence ties and included the si/nin/ of a ma5or arms technolo/y a/reement 1ith a reported value of US<137 billion3 ,n 199+ another series of defence e8chan/e visits yielded a five-year defence cooperation a/reement Bsee orei/n "rms SalesC China! ch3 9D3 " strate/ic partnership! si/ned in early 1994! si/nificantly stren/thened ties3 ,n December 1992! Eeltsin 1ent to China and si/ned a nona//ression declaration that theoretically ended 1hat each called the other6s search for re/ional he/emony in "sia3 "nother treaty included 2ussian aid in buildin/ a nuclear po1er plant! the first such provision since Sino-Soviet relations cooled in the late 19$%s3 Chinese party chairman (ian/ Femin visited #osco1 in September 1994 and concluded a protocol that resolved some border disputes and /enerally stren/thened bilateral ties3 Durin/ Eeltsin6s visit to China in "pril 1994! both sides described their relationship as evolvin/ into a Gstrate/ic partnership!G 1hich included substantially increased arms sales3 "t the "pril meetin/! ne1 a/reements made pro/ress to1ard delineatin/ and demilitari@in/ the t1o countries6 +!44$ .ilometers of common border3 "lthou/h border security and ille/al Chinese immi/ration into the 2ussian ar Hast 1ere controversial issues for 2ussian re/ional officials! Eeltsin demanded re/ional compliance 1ith the a/reements3 2ussia has respected China6s claim that Tai1an is part of its territory! althou/h 2ussia6s trade 1ith Tai1an increased to nearly US<+ billion in 199$ and 2ussia planned to open trade offices on the island in 19943 ,n 1994-94 China emer/ed as a ma5or mar.et for 2ussian arms! havin/ bou/ht several do@en Su-2* fi/hter aircraft and several &ilo-class attac. submarines3 2ussia also had a positive trade balance in the sale of ra1 materials! metals! and machinery to China3 " series of hi/h-level state visits occurred in 1994 and 199$3 0oth countries pursued closer ties! in each case partly to counterbalance their coolin/ relations 1ith the United States3 ,n #arch 1994! 2ussia announced that it 1ould /rant China a loan of US<2 billion to supply 2ussian nuclear reactors for po1er /eneration in northeast China! and further cooperation 1as proposed in uranium minin/ and processin/! fusion research! and nuclear arms dismantlement3 1991 Sino-Soviet 0order "/reementIIIIII

Relations !urin" &000s

Jut border thin/y here onlyIIIIIIIIIII

Trade History
,n the 192%s and 19+%s! China typically accounted for only +)$K of the forei/n trade of the Soviet Union ,n the 19$%s! China;s share in Soviet Union;s forei/n trade 1as 1$)2%K The share of the Soviet Union /re1 rapidly to account for more than half of China;s forei/n trade! and it 1as still about 4%K at the start of the 194%s "fter the border conLict in 1949 there 1as practically no trade bet1een 2ussia and China 197$ 1hen Jresident Morbachev came to po1er trade improved but remained modest ,n the last years of the Soviet Union China;s share of its forei/n trade 1as less than 2K3 The share of the Soviet Union in China;s forei/n trade fell belo1 1%K in the mid-194%s! and a Nuarter of a century later! 5ust before the Soviet Union bro.e up! the share 1as about +K3

Trade History
Soviet Union in the 199%s! their economic relations 1ere burdened by 2ussia;s unstable conditions and poor economic performance Chinese economy had yet to reach such a critical mass as 1ould lead to deeper cooperation in respect of commodity e8ports 2ussia;s descent into a full-scale Onancial crisis in 1997 "t the turn of the millennium China;s stron/ /ro1th be/an to have a visible impact on the /lobal economy throu/h demand

Trade Relations
2ussian e8ports Nuadrupled from <$ billion at the be/innin/ of the 2%%%s to <2% billion in 2%1% ,n 2%1%! China 1as 2ussia;s $th lar/est e8port mar.et 1ith a $K share China;s share in the 2ussian imports increased from +K in 2%%% to 1*K in 2%1% ,n the latter part of the last decade! robust import /ro1th turned 2ussia;s trade balance 1ith China into deOcit in spite of a rise in commodity prices3 Only in 2%%9! 1hen the /lobal Onancial crisis hit 2ussia;s imports hard! did the trade bet1een 2ussia and China move more or less into balance3 ,n 2%1%! the 2ussian trade deOcit 1ith China 1as some <19 billion! even as the total 2ussian forei/n trade 1as almost <1*% billion in surplus

C'ina Russia !i((erence

China China;s nominal MDJ 1as nearly <$9%% billion in 2%1% China;s share increased from less than 4K to about 14K 2ussia 2ussia;s nominal MDJ 1as <1$%% billion in 2%1% 2ussia;s share of /lobal output has remained around +K 2%1%

C'inas S'are In Russian Trade

Chinas Share ,n 2ussia orei/n Trade in K

SourceP U- Comtrade

Present Trade
,n 1st Nuarter of 2%12 trade bet1een the t1o countries /re1 by ++K hittin/ US<21349 billion China is already 2ussia6s main source for imports! 1hile 2ussia is China6s 7th lar/est tradin/ partner China e8ports mainly mechanical and electrical products! hi/htech products! and te8tiles to 2ussia ,mports of motor vehicles have also risen rapidly causin/ concerns amon/ 2ussian carma.ers 'hile ener/y and ra1 materials /o the other 1ay China has become a ma5or player in the 2ussian mar.et! 2ussia;s role in the Chinese economy! 1ith the e8ception of ener/y has remained mar/inal

C'inas Trade ))))

Regional Comparison of Chinas OFDI Stock (2005 -2010

)))))
-orth "mericaP 49314 HuropeP 42344 "siaP 74349

?atin "mericaP 4737+

"fricaP +*321 "ustraliaP 413$2

!ggregate" Data on Chinas O#t$ar" Direct In%estments o%er &SD 100 'illion( 2005 ) 2011 (&SD *illion
Data SourceP :erita/e oundation

"mur 2e/ion Ussuri 2iver

0ei5in/

C'ina Russia !e(ense

China needed 2ussians arms and technical support to up/rade its defence capability BChina had no choice because of the HU embar/o 1979D 2ussian arms e8ports to China pea.ed in 2%%$ and have since fallen rapidly from more than 4%K to less than *K The collapse of arms e8ports is due to 2ussia;s reluctance to sell the latest military technolo/y China;s o1n advances in the Oeld of military production and technolo/y The &remlin a1are that Chinese desi/ners had been busy copyin/ 2ussian

 'hen they patched up in 197%;s Scenario ion 199%;s 0order issues "nd in 2%%%;s

C'ina & Russias Far *ast

ar Hast re/ion stretches over 4%K of 2ussian territory 2ussia fears possible ta.eover demo/raphically and economically China felt attracted to #osco1;s ar Hast since tsarist;s too. over cities such as &habarovs. and Aladivosto.! in the nineteenth century China had leased considerable parcels of land in the 0irobid@han and &habarovs. re/ions to Chinese farmers= China invested + times as much in the 2ussian "mur and 0irobid@han re/ions as #osco1= 2ussia has started to ta.e steps althou/h not openly mentioned as aimed to counter Chinese influence

T'reats To Relations
1ith re/ard to China;s future e8pansion into sparsely populated ar Hast The &remlin 1as also a1are that Chinese desi/ners had been busy copyin/ 2ussian 1eapons! 1hich no1 has the potential to upset #osco1;s position in the mar.et for lo1er-cost 1eaponry

China & Central Asia

0oomin/ economy! /ro1in/ population and increasin/ need for ener/y! China needed Central "sia for ener/y security and for e8panded trade
0J Statistical 2evie1 of 'orld Hner/y (une 2%1+

This puts 2ussia on the defensive in Central "sia! its privile/ed sphere of influence

2ussia is loosin/ /round here but is unable to compete 1ith China

UnitP 0illion #
+

China Russia Organizational ????

Shan/hai Cooperation Or/ani@ation BSCOD i3 The S3C3O3 provides cooperation in political! military! economic! ener/y and cultural fields ii3 in 2%%$ > 2%%* the SCO conducted lar/e military e8ercises! called 9Jeace #issions;

02,CS i3 China! emphasi@ed economics! #osco1 stressed an assertive forei/n policy

Conclusion
Corner-stone of cooperation primarily focused on an anti-'estern BUSDstance (oint declarations in crises such as Syria! as part of mutual interest in soverei/nty > national interest 0ut disputes! such as - 2ussia;s support of BMeor/ianD separatism! the option of military intervention in &yr/y@stan! and China;s increasin/ly dominatin/ role in Central "sia 2usso)Chinese economic cooperation mainly in the areas of ener/y and arms the 5oint e8ercises served more to /ain insi/ht into the military capabilities of the other 2ussia considered protection of its ar Hast re/ion as a main concern

Conclusion

+iblio"ra 'y
2ussia;s economic policy and 2ussia-China economic relations by (ou.o 2autava 2ussian)Chinese Security 2elationsP #osco1;s Threat from the HastI by #arcel de :aas 2ussia-China Hconomic 2elationsP "n "nalysis by Su5it &umar True JartnersI :o1 2ussia and China see each other by Dmitri Trenin