48bb2be6cecf3a81b7ad74ca58ec7ddd6e272e60

China Is the biggest Investor

10.09.2019 Analytics

The history of China’s statehood formation and development achieves several millennia, its nation has made a significant contribution into both material and spiritual culture of humanity throughout the world. Having in possession huge territories, essential labor and material resources and potentially large internal commerce, The Heavenly Empire has nearly all suppositions for creating integral, well-rounded economy, which is able to meet the necessary goods’ needs of the country.

Currently, China enters the top ten leading countries in the world by GDP sizes and its economic potential. The growing role in the world’s economy of the Asia Pacific region even more enhances the economic potential of the PRC.

Main Characteristics of the Economy of China

All positive changes in the country’s economy can be written off to the qualified reform in 1970-1990. Herewith, they were carried out taking into consideration national peculiarities. Thus, when moving to the socialist regime, a course for eradicate poverty was held (unlike other communist states). This meant that during developed communism, the life level should not be lower than during capitalism. That is why all changes were made taking into account that they were useful for ordinary citizens first of all, and provided them with everything necessary for life. Besides that, economic reforms were conducted not in a rush but smoothly, so there were no sharp spikes, and transition to the market was gradual.

The state plays a great role in the economy: it is accounted for about 60%. Other 40% belong to private capital. Moreover, the country has developed fiscal control authorities, so budgetary replenishment at the expense of tax is carried out quite successfully.

Due to the large population, the domestic market is very developed, and because the welfare of the population is constantly growing, the purchasing power also improves. Export and import are also stably growing: China’s economy is actively interacting with economies of other countries, and is becoming integrated with them in many productive and research spheres, so rationally develops and constantly renovates. In addition, China has many free economic zones, which attract investments. Thanks to this, there is a quick development of science and technology in the country.

The state encourages and contributes to the spreading of the national currency, as well as prevents its exchanging for dollars. This reduces threat of influence of global financial crises in a particular way.

A characteristic feature of the economy of the PRC is that significant quantity of ethnic Chinese (and immigrants) live in various parts of the world. They create closed groups, which at the same time are economically and socially connected with the native land, and their capital does not go by it. Especially it relates to powerful businesspeople who are of China descent and who live in other countries.

Chinese investments in Ukraine

In 2016, in port logistic sector, Chinese corporation COFCO Agri launched a transshipping complex of grain and oilseed crops with annual capacity of 2.5 million tons in Mykolaiv Sea Commercial Port. The investment project costed $75 million. COFCO Agri in Ukraine also controls several elevators and oil extraction plant. Over the whole period of existence in the Ukrainian market, the company has invested over $200 million.

CNBM company is one of the largest investors in ecological energy of Ukraine and owns many powerful solar electro stations plants in the Odessa and Mykolaiv regions. Management of the company informs that there are investments of over $1 billion in total.

The Xinwei Group, which is one of the leading telecommunication companies of the PRC in the world, was opened in Kyiv in 2014. Ukrainian telecommunication operator Prosat creates the network of mobile broadband multimedia communication of 4th generation (national scale) on the basis of McWiLL® technologies from the Xinwei Group. 150 installed base stations covered the capital of Ukraine and significant territory from Kharkiv to Mariupol, the bandwidth coverage goes through four eastern regions of the country.

Beijing Skyrizon Aviation Industry Investment Co Ltd and Ukrainian company Motor Sich created a common venture based in China. Construction of the plant for aircraft engines production and maintenance was started in Chungking. The company announced the possibility of licensed manufacturing by common venture of D-136, MS-500V and TV3-117VMA-SBM1V helicopter engines, as well as engines for general airplanes AI-450C, turbojets D436-148FM and D-18T engines. The investments amount is not disclosed yet. However, taking into account that the Russian target market is now limited, a new and prospective market appeared to be convenient. Beijing Skyrizon finances manufacture launching, and Ukrainian side provides technologies. Herewith, Chinese have already invested $100 million in the modernization of the Motor Sich production capacities in Ukraine and the investment agreement in the amount of $150 million has been already signed into the center of advanced development and pilot production.

In addition to strong investments, there are several small capital outlays of Chinese investors into the economy of Ukraine. Thus, in 2017, Bohai Commodity Exchange Co. Ltd. (BOCE), the biggest spot commodity exchange of the PRC, purchased block of stock (99.9 %) of Ukrainian Bank for Reconstruction and Development from the State Property Fund of Ukraine, which has been in the state’s property, at a starting price of 82.8 million UAH.

The Chinese have also considerable interest in Ukrainian agro sector. Starting from 2013, an agricultural company Fanda is conducting its activities in Naumivka village, Chernihiv region, founder of which is the large Chinese Agricultural State Corporation HuanFan Qu.

Development prospects of bilateral relations

China’s interest in Ukraine is growing. This is proved by the strengthening of economic relations in recent years, the presence of large Chinese companies in Ukraine – COFCO, CNNC, CCEC, China Harbor Engineering Company, Huawei.

Commodity exchange between countries is also gradually increasing, for example, for January-November 2018, it grew on $1.1 billion compared to the whole 2017, and was $8.82 billion.

Chinese companies were not afraid to invest in Ukraine even in difficult social and political period for us. This instills confidence that together with stabilization of the situation in the country, investments flow will continue accelerating. The PRC notices a great potential of the Ukrainian market. Currently, due to the trade agreements between Ukraine and the EU, opportunities are only increasing. Proximity to the European market and the opportunity to expand its production sites on the Ukrainian territory attract the economic interest of The Heavenly Empire, what is working on Ukraine’s favor.

China’s initiative One Belt One Road predicts the development of trade relations between China and Europe. The ambassador of the People’s Republic of China to Ukraine Du Wei mentioned that this project is inconceivable without Ukraine. Projects in the frames of the Silk Road hereafter may help Ukraine avoid the transit restrictions of Russia to the countries of Central Asia.

Many experts assert that further cooperation development between Ukraine and China will contribute to decreasing of the Russian impact on the economy of Ukraine, and that attraction of the Chinese capital will reduce escalation risks of military actions by the Russian Federation and at the same time will increase the geostrategic value of Ukraine.

Please read: Doing business in Ukraine during the period of political instability: what to focus on

Read the news in our app! 
Google Play: https://play.google.com/store/apps/details?id=ua.com.grodas.ldaily&hl=ru
App Store: https://itunes.apple.com/us/app/ldail/?p=89234y/id1354384907?l=uk&ls=1&mt=8

Pay attention!
“SNN GROUP” owns the exclusive copyright of the information in this article.
The author has the sole right to control the use of this material.
It means the prohibition of using this information without our consent. The term “information” means texts, comments, photos, images, and other materials.
Any use of the information or any part of this article without the written permission of the author is prohibited.
The term “use” means copying, adaptation, re-writing, modifications, etc.
In the case the irregularities are detected, the author has the right to copyright protection in accordance with the procedure established in Article 50-53 of the Law of Ukraine «On Copyright and Related Rights».

Other articles

  • S&P forecasts global debt growth of up to $ 200 trillion
    News

    S&P forecasts global debt growth of up to $ 200 trillion

    World debt will reach $ 200 trillion, which is 265% of world product, but the debt crisis is not yet expected. This was reported by Reuters, citing the forecast of analysts of the international rating agency S&P Global. It is claimed that this year the debt-to-world debt ratio has risen by 14% as a result […]

  • The world’s largest free trade area has been created
    News

    The world’s largest free trade area has been created

    China, Australia, Japan and 12 other countries in the Asia-Pacific region have formed the world’s largest free trade area. The agreement was signed during the online summit of the Association of Southeast Asian Nations. We are talking about the creation of a free trade area called the Comprehensive Regional Economic Partnership (CREP). The following countries […]

  • China has launched the world’s first 6G satellite into orbit
    News

    China has launched the world’s first 6G satellite into orbit

    According to the BBC, China has launched the world’s first 6G test satellite into space. It should demonstrate how well the experimental technology of the sixth generation network works. The satellite successfully entered orbit along with 12 other spacecraft after launching a rocket from the Taiyuan Cosmodrome in Shanxi Province. It is known that the […]

  • Samsung Electronics came in first in the world in sales of smartphones
    News

    Samsung Electronics came in first in the world in sales of smartphones

    South Korean company Samsung Electronics in the third quarter of this year took first place in the global smartphone market. This was reported on Friday by KBS, citing data from the international research company Counterpoint Research. According to this data, during this period, Samsung controlled 22% of the world market. In second place is the […]

  • China’s economy grew by 4.9% in the third quarter
    News

    China’s economy grew by 4.9% in the third quarter

    According to the National Bureau of Statistics of China, the country’s GDP grew by 4.9% year on year in the third quarter. China’s economy is recovering the fastest in the world from the COVID-19 pandemic – GDP decline by closing factories and quarantine in the first quarter of the year already fully compensated, and the […]

  • The US authorities have allowed Intel to continue the supplying its Huawei products
    News

    The US authorities have allowed Intel to continue the supplying its Huawei products

    Intel has received licenses from US regulators to continue supplying certain products to Huawei Technologies. The list of products is not specified. Due to the significant deterioration of relations between the United States and China, Washington is putting pressure on the governments around the world to oust Huawei from the market. The US government claims […]

  • The external debt of Ukraine added $ 2.5 billion
    News

    The external debt of Ukraine added $ 2.5 billion

    In the second quarter of 2020, Ukraine’s gross external debt increased by $ 2.5 billion and amounted to $ 122.8 billion, according to the National Bank. In terms of GDP, debt increased to 78.8% from 75.1% at the end of the first quarter. At the beginning of the year the figure was 78.6%. “External debt […]

  • Nvidia is preparing to make the biggest deal in the chip market
    News

    Nvidia is preparing to make the biggest deal in the chip market

    The American technology company Nvidia is approaching to the agreement to purchase the British chip manufacturer Arm from the Japanese SoftBank. Bloomberg was told by familiar with particular situation Sources. Similar information was also reported by the interlocutors of The Wall Street Journal and the Financial Times. Bloomberg sources said, the operation may be announced […]

Read also

China Is the biggest Investor
News

Concorde Capital accuses Kernel of corruption motives when buying the Creative factory

The acquisition of the Creative factory by the company Kernel Group  had a corruption component. Such an opinion was expressed by the expert of the  Concorde Capital investment company, Alexander Paraschiy, according to the  AgroPolit.com. He argues that the deal is profitable for Kernel, but would be a bane for the largest state-owned banks and […]

Next
China Is the biggest Investor
News

The Ukrainian startup Moggie raised investments in Sweden in the amount of $ 70 thousand

Until quite recently, the Petcube took the lead position in the Ukrainian niche of gadgets for pets. But a startup team of the Moggie project proved their importance. The company is developing a smart collar for cats and mobile application, which in pairs or individually will allow owners to monitor the health of their pets, […]

Next
China Is the biggest Investor
News

Souce business: what is happening with the production in Ukraine?

In Ukraine it is observed the decline in the production of sauces , namely the manufacture of ketchup, sauces based on mayonnaise and mustard. But, nevertheless, the export of these products was reduced insignificantly by manufacturers and domestic demand continues to be satisfactory. According to the State Statistics Service of Ukraine, figure of ketchup manufacturing […]

Next
China Is the biggest Investor
News

The US court has lifted the ban on TikTok

Court of the United States in late Sunday night temporarily blocked ban by the administration of President Donald Trump on downloading the TikTok program. This was reported by Reuters on Monday, September 28. Considered, that that the ban was to take effect on Sunday at 23:59 local time (Monday at 6:59 Kyiv time). However, the […]

Next
China Is the biggest Investor
News

Gaming giant Zynga bought rival game developer Peak Games for $1.85 billion

American company Zynga Inc. that creates popular social network games has closed a deal to buy everyone in circulation in the shares of the Turkish Peak Games. It is reported that the payment was almost equal to the funds and ordinary shares of the company. As part of the operation, Zynga received two franchises from […]

Next
China Is the biggest Investor
News

Alphabet has taken $10 billion in the bond market at a record low interest rate

On August 3, Alphabet issued bonds worth $10 billion. This is the largest issue of debt securities in the history of the company, according to the Reuters. With $ 10 billion bond tranche allocated $ 1 billion with a maturity of 5 years and a coupon of 0.45%. The $4.5 billion tranches with maturities of […]

Next
China Is the biggest Investor
News

JD.com will be the first platform to accept China’s cryptocurrency

Chinese e-commerce company JD.com Inc announced on Saturday that it will be the first platform in the country to accept China’s digital currency. The Central Bank of China will hold its second digital yuan lottery among citizens of Suzhou, near Shanghai on Friday. The total amount of playable digital yuan is 20 million ($ 3.06 […]

Next
China Is the biggest Investor
News

IPO Snowflake has become the largest in the history of IPO software

After a sensational debut Snowflake on the NYSE on Wednesday, shares of the cloud storage and processing company are expected to fall ahead of trading on Thursday. Shares of Snowflake fell to 4.3%. Snowflake brought 28 million shares to the public market to raise $ 3.36 billion during the largest software IPO in history. Shares […]

Next
China Is the biggest Investor
News

Oil has recovered the maximum since January 2020

World oil prices at the auction on Thursday, June 3, updated for a maximum of four months. Thus, August futures on Brent reached $ 71.84 per barrel, which is the highest since January 2020. July futures on the WTI are trading above $ 69 per barrel – a maximum of October 22, 2018. Quotes are […]

Next
China Is the biggest Investor
News

Shell to invest in the Brazilian project in the nearest future

The Royal Dutch Shell declared their intention to invest about $10 billion in the development of the Brazilian business. The project has been calculated for 5 years. The annual volume of investment will reach 2 billion dollars. The representative office of Shell in the territory of South America includes network of the “5500 gas stations”companies. […]

Next
China Is the biggest Investor
News

IPO Snowflake may become one of the most popular in 2020

IPO Snowflake, which will take place on the NYSE, will be held at the higher price than announced in early September. On Monday, according to SEC applications, Snowflake, a company that makes storage software, raised its projected stock price to $ 100- $ 110, while the market valuation of the company could grow to $ […]

Next
picturepicture 156446930057951110266878 96171
News

CREDIT AGRICOLE TOPS THE SOCIAL RESPONSIBILITY RATING AMONG BANKS ACCORDING TO STANDARD-RATING

Credit Agricole has been ranked first in the social responsibility rating of the banking sector, created by Standard-Rating based on the 2022 half-year results. The rating agency commended the bank’s contribution to the economy of Ukraine. The bank has paid UAH 100 million in taxes in advance, while issuing UAH 1.2 billion in loans under […]

Next
China Is the biggest Investor
News

Naftogaz agreed with the Poles on the development of subsoil

Naftogaz of Ukraine signed a memorandum with the Polish PGNiG on joint development of fields in the western regions of Ukraine. This was reported by the press service of the NAC on Tuesday, March 30. Naftogaz CEO Otto Waterlander said the company had acquired strategic assets “that enable it to confidently declare the greatest hydrocarbon […]

Next
China Is the biggest Investor
News

Life announced the rebranding

The “Astelit” company in the near future will carry out the rebranding of mobile operator life. It is not just about changing the symbols and corporate colors, but also to change the name: new brand can get a name ‘lifecell’ similar to the parent company Turkcell. As well as the logo symbol of the Turkish […]

Next
8 1
News

Ukraine is expected to install 3 GW of solar power facilities by 2020

The capacity of installed solar energy facilities in Ukraine will increase up to 3 GW by 2020. Vitaliy Daviy, CEO of IB Center Europe, made such forecast for the development of the industry at CISOLAR 2019 the 8th Solar Energy Conference in Kiev. As of April 1, 2019, more than 2.2 GW of solar energy […]

Next
China Is the biggest Investor
News

The former head of Ukrzaliznytsia demands 17 million hryvnias in court

Former head of Ukrzaliznytsia Volodymyr Zhmak filed a lawsuit demanding that the company’s order to terminate his employment contract be declared illegal. This was reported by Interfax-Ukraine with reference to the materials of the court proceedings №2 / 761/9699/2021, which were published in the Unified Register of Court Decisions. Zhmak asks to reinstate him as […]

Next