Russian Sovereign Wealth Fund To Partner With China’s Hainan & Sichuan To Support Russian Companies In China

The Russian Direct Investment Fund (RDIF) and the Hainan Free Trade Port Resort Software Community Group have agreed on a partnership to support Russian companies trying to enter the Chinese market and scale up their presence in the region, it was announced during President Vladimir Putin’s visit to China.

Hainan FTP RSC Group is a leading platform for the development of Hainan’s digital economy. The platform has the status of a national technology business incubator and is positioned as a center for innovation in digital commerce and a leading platform for the development of fintech. More than 15,000 companies with a combined turnover of more than ¥200 billion (US$28 billion) are registered here.

Under the partnership, the RDIF and Hainan FTP RSC Group will consider the possibility of jointly establishing a center for industrial and trade cooperation on Hainan geared toward Russian companies, the fund said. The new center will make it possible to take advantage of the Hainan Free Trade Port to offer Russian businesses integrated services and infrastructure to implement international projects.

The Hainan FTP RSC Group are free trade zone operators in Hainan Island, off China’s southern coast near to both Hong Kong and Vietnam. The entire island is a free trade area with very specific benefits, especially in medical tourism, as it is able to import and utilise certain drugs and medical treatments not available in mainland China.

The RDIF and Hainan FTP RSC Group will also provide support for Russian companies to implement investment projects at the Hainan Ecological Software Park and in other regions of China. Russian investors will be offered access to legal, tax and administrative services, as well as government support measures, which will make it possible to take advantage of local infrastructure.

In addition, the RDIF, the National Coordination Center for International Business Cooperation (NCC) and the Sichuan Association in Russia have agreed on a partnership to implement joint investment projects in Russia and China. The NCC and Sichuan Association plan to study markets, help identify suppliers and consumers in both countries, and provide logistical support. The RDIF will bring in its portfolio companies and international co-investors to realize the investment opportunities. Sichuan is a huge inland Chinese province with a population of about 120 million people. Its major cities are Chengdu and Chongqing, although Sichuan and Chongqing are administered as separate entities.

RDIF head Kirill Dmitriev stated that “Together we will focus on such promising sectors as infrastructure, high-tech manufacturing and electronic commerce, while simultaneously creating a new forum for dialog and cooperation.”