Introduction to International Politics

Foreign Event Analysis

Locale[]
Russian Federation
Title
Putin and Wen Make It Official
Summary
The Prime Minister of Russia, Vladimir Putin, and Chinese Premier Wen Jiabao met in Moscow to sign off on a lot of exchanges between Russia and China. The main exchange signed off on was the Russian trade of oil for Chinese loans. Russian oil will be sent to China through an oil pipeline that will be a part of the East Siberia-Pacific Ocean pipeline that will supply Asian markets with oil. In exchange for this oil, China will be lending the Russian oil companies approximately $20 billion. Russia has also agreed to build two new nuclear power reactors in China. China plans to financially support the Russian development of a civilian heavy helicopter, and Russia will sell China four heavy helicopters. In addition to these agreements, many others were made between Russia and China.
Analysis
These negotiations have created a strong interdependence between Russia and China. They have not only agreed on one area of trade, but several areas of trade. Russian oil companies are greatly expanding by constructing an offshoot of the East Siberia-Pacific Ocean pipeline to reach China, which is need of oil. In return for this oil, Russia will receive substantial loans from China.
Russia will also be building two 1,000 megawatt nuclear power reactors in China. Allowing a foreign state to help build nuclear power reactors in one’s own state requires a lot of trust. Russia and China are forming a very tight bond through these negotiations.
In regards to the trade of helicopters, both countries will prosper due to their new negotiations. Russia has had plans for a 30 ton civilian heavy helicopter for some time now, but has not had the funds get their ideas off the ground. With the help of Chinese funds, Russia will be able to implement their ideas and build the helicopter. China also wins in this situation because in return for the Chinese funds, Russia will sell China four Mi-26 heavy helicopters. China is currently the world’s largest importer of helicopters.
After the agreements were made, Wen said, “I think this all will be useful for the stabilization of our national economy, stabilization at the capital markets.” As many states are in an economic depression, being able to stabilize the economy is a main goal of most, if not all states. The negotiations will not only help China’s economy, but also Russia’s economy. Following the saying “A rising tide lifts all ships,” Russia and China are both significantly benefiting from their diplomacy.
Perspectivel
Liberal
In-Region URL
http://www.themoscowtimes.com/articles/detail.php?ID=372000&print=Y
Out-of-Region URL
http://www.oem.com.mx/eloccidental/notas/n909567.htm
Submitted
October 30, 2008 at 8:39 pm