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Archive for the ‘Current Events’ Category

 

China-Russia relations are a prime example of a love-hate relationship.  The two countries’ trade, tourism, business development, and border protection policies vary from warm and fuzzy to bitter cold.   A city right on the China-Russia border, Hehei, is known for its ritzy lights, cheap electronics and clothing, and booming tourism industry.  Russians often travel to Heihe for pleasure, but few Chinese are able to cross into the Russia for the same — which has in turn caused China to publicize its border control efforts.   

At this section of the Russia- China border, the two are inextricably linked — the oil pipeline, the cross-border trade, and the inter-cultural marriages.   There is, however,  an underlying mistrust between the two — a classic case of Spy v. Spy in a variety of organizations, enterprises, and business ventures.  Issues of electricity supply and pricing, oil distribution, and general control of natural resources force the countries to constantly be skeptical of each other.

I dare say that the Russians need to stay on their guard a bit more, and consider whether they are really ahead in their China-related ventures.  If they can’t ascertain whether they are winning or losing; chances are they are losing.    

“Therefore, just as water retains no constant shape,
    so in warfare there are no constant conditions.” – Sun Tzu, Art of War

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 If one wants to track business opportunities with China, I suggest tracking by industry.  Today’s flavor of the day: wind energy. 

Tracking money coming out of China can be as simple as tracking what incentives and new programs the Chinese government is promoting; that is where the money originates from. 

China Energy Conservation Investment Corporation (中国节能投资公司) is a good example of  a governmental vehicle used to direct funding into a top-priority industry — clean energy.  If you watch the deal news, large-ticket joint ventures and equity deals are being financed by Chinese banks and other forms of government funding.  The Chinese have become increasingly sophisticated in making the wind turbine components at low-cost, and with government funding to obtain majority control in wind turbine deals in the U.S., these deals are becoming more and more attractive for all involved.

 

 

 

 

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