US companies returning to the Russian market to compete with Chinese enterprises, Russia presents conditions, which is not good news for China.

The US Bloomberg cited a Kremlin source as saying that the Russian Ministry of Finance has formulated some conditions for US companies to return to the Russian market.

Mainly there are two. One is that companies returning to Russia need to transfer technology to the Russian side, and the other is to achieve partial process localization. In addition, the Russian side will seek opinions from Russian competitors.

Previously, it was reported that US companies returning to Russia need to establish joint ventures with Russian enterprises.

All these points should be included, and the purpose is also clear. Entering the Russian market is acceptable, but it cannot squeeze the survival space of local Russian enterprises, and certain technologies and production capacities need to be retained. Only in this way, when the US and Russia clash again in the future, US companies won't just walk away. On the contrary, when the US wants to target Russia again, they have to consider the interests of US companies, which is essentially a form of linkage.

For China, this is not good news. The purpose of US companies entering the Russian market is certainly to compete with Chinese enterprises. Over the past three years, Western enterprises have basically left, and Chinese enterprises have already established a foothold in Russia. Now they return, their main competitors will not be Russian enterprises, but Chinese enterprises.

And if US companies accept Russia's conditions and get tied up with Russian interests, then during the competition process, there might be a situation where Russia leans toward US companies.

However, on the other hand, even if US companies really can return, truly willing to give up technology and accept localization, it's only superficial enthusiasm.

The cooperation between China and Russia is no longer about who replaces whom, but about deep integration through complementarity. Even if US companies return, they are just joining the queue again; they don't undermine the foundation of Chinese enterprises. The overall friendly relations between China and Russia will not change easily due to some commercial speculation.

Original article: https://www.toutiao.com/article/1829728765344778/

Disclaimer: This article represents the author's personal views.