Author(s)

Bing Guan , Fei Luo

Corresponding Author

Bing Guan

Abstract

As the largest country in the world, Russia is rich in oil, gas and mineral resources due to its vast territory, but its economy is not developed. China and Russia have a long border, which provides a natural geographical advantage for the economic and trade exchanges between the two countries. Since the end of the 20th century, with the deepening of the two countries in political, economic and cultural exchanges, investments from China are particularly important for Russia. Although in recent years, the total investment from Chinese enterprises to Russia has been increasing year by year, Chinese companies are facing a series of problems, such as financing difficulties in Russia, high cost of doing business, imperfect market and law system, lack of understanding of the Russian market. The paper closely analyses the present situation of Chinese direct investment in Russia and the obstacles that Chinese enterprises have been facing in the process of making direct investment in Russia. Under the background of ‘the Belt and Road’ strategy, both China and Russia should seize the opportunity and explore the cooperation in trade, investment and joint projects. At the last part, the paper proposes some countermeasure from macroscopical and microcosmic point of view to adjust investment strategies from China to Russia in the hope of strengthening outward direct investment to Russia.

Keywords

Direct Investment; Investment Obstacles; Chinese Enterprise; Russia