Private firm setting up Russia trade zone

A Zhejiang-based footwear manufacturer is expected to lead the launch a trade and investment zone in the Russian Far East the first of its kind by a Chinese private company.

The zone in which total investment will amount to 2 billion yuan in Ussuriysk, an industrial city, is targeted by Kangnai Group at Chinese investors and traders.

Construction of the 2-square-km zone started last August and is expected to be fully completed in 2010, according to Zhou Jinmiao, a senior official of Kangnai.

Zhou said the zone is rolling out the red carpet for all companies that have business in Russia.

The move is believed to take more Chinese industries to the Russian market, strengthening trade and investment ties between the two countries.

The Ministry of Commerce declined to disclose more details about the zone in Ussuriysk but said "China is considering setting up cooperation zones and encouraging enterprises to build plants in Russia".

According to statistics from the ministry, China had invested a cumulative $1 billion in more than 700 Russian projects by the end of last year.

To help accelerate the "go-out" strategy of Chinese enterprises, the government has established economic and trade cooperation zones in some countries such as Pakistan and Zambia.

The commerce ministry encourages domestic enterprises to develop similar zones overseas, which could be built by a single company or a group of firms and play a key role in helping Chinese small- and medium-sized enterprises invest abroad.

Source: China Daily