CC BY
56Review of Business and Economics Studies 2019, Vol. 7, No. 2, 6-21
Doi: 10.26794/2308-944X-2019-7-2-6-21
Heilongjiang Province's Engagement in BRI
Song Linlin Abstract
As one of the nine border provinces in the country, Heilongjiang Province has 2,981 kilometres of Russian-Russian border and 25 national first-class ports. In the past five years, Heilongjiang Province, based on the prominent geographical position in the core of Northeast Asia, has actively promoted the national strategy of the Belt and Road Initiative, deepened on open cooperation with countries in the Northeast Asia, and focused on developing economic cooperation and trade with Russia while building a new pattern of openness to the outside world. This paper in detail elaborates the progress of Heilongjiang Province's participation in the Belt and Road Initiative (BRI) in aspect of "five links" construction, namely, policy coordination, connectivity of infrastructure, unimpeded trade, financial integration and closer people-to-people ties, since the implementation of the Belt and Road Initiative in 2013, and further proposes feasible countermeasures.
Keywords: the Belt and Road Initiative; Heilongjiang Province; Northeast Asia regional cooperation; Russia; policy coordination; connectivity of infrastructure; unimpeded trade; financial integration; closer people-to-people ties JEL Classification: F15, F18, F43
Introduction
In September, 2013, Chinese national president Xi Jinping proposed the major initiative of "Jointly Building the Silk Road Economic Belt" and "the 21st Century Maritime Silk Road" in Kazakhstan, the world's largest landlocked country, and in Indonesia named as "Thousand Island Country", which portrayed to the world a picture of "shared responsibility for the world and promoted global development". The initiative is a great practice in building a community of human destiny, which is of epoch-making significance for creating a new pattern of China's all-around openness, accelerating the great rejuvenation process of the Chinese nation, and promoting world peace and development. In March 2015, the National Development and Reform Commission, the Ministry of Foreign Affairs, and the Ministry of Commerce issued document named Vision and Action for Promoting the Construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road (from now on referred to as "Vision and Action"). This document defines the Belt and Road Initiative as "policy coordination, connectivity of facility, unimpeded trade, financial integration, and closer people-to-people ties" (from now on referred to as "five links") (Li Yan, 2018, pp. 16-21). As one of the nine border provinces in the country, Heilongjiang Province has 2,981 km of Russian borders and 25 national first-class ports. In the past
five years, Heilongjiang Province has exerted its geographical advantages, actively participated in the Belt and Road Initiative, and focused on strategic docking with Russia and achieved fruitful results. This paper reviews in detail the progress and challenges faced by Heilongjiang Province in attaining the goals of "five links", and then proposes feasible suggestions for deepening all-round opening up in Heilongjiang Province.
The Conceptual Framework
The body of the paper consists of five parts. First, as concerns policy coordination, Heilongjiang Province introduced relevant policies and implemented them under the guidance of the Belt and Road Initiative. It covers three planning of the construction of the Eastern Land-sea Silk Road Economic Belt, the construction of "China-Mongolia-Russia Economic Corridor" Longjiang Land-sea Silk Road Economic Belt, and a new pattern of all-round opening up of "One Window, Four Districts". Accordingly, Russia also promulgated relevant documents in response to Heilongjiang Province's planning, which contributes to effective docking between two sides, which could promote Heilongjiang Province's exchanges and cooperation with Russia in various fields and better accelerate the in-depth development of China-Russia comprehensive strategic partnership of cooperation. Second, connectivity of infrastruc-
ture has achieved remarkable results. The channel construction layout and Unicom have made significant progress, especially in the expansion of land and sea combined transport lines, the normal operation of Harbin-Europe Train and Harbin-Russia Train, the construction of cross-border bridges, the opening of oil and gas pipelines, and the opening of container hubs, the construction of high-speed railways, the renovation of hub airports and branch airports, and the construction of Sino-Russian information hub projects.
What is more, Breakthrough progress of "three bridges, one island, one corridor, one port" will promote the multi-point connectivity of cross-border infrastructure, optimise the pattern of opening up, which can boost Heilongjiang Province's entering a new era of opening to the outside world. Third, from the aspect of unimpeded trade, Heilongjiang Province mainly focuses on economic and trade cooperation with Russia. The part shows that Hei-longjiang's economic and trade cooperation with Russia in the past decade has shown the progress from the illustration of the data. At the same time, Heilongjiang Province has taken actions to transform traditional trade structure, and vigorously developed "Internet + trade", which has made significant progress, especially in the construction of cross-border e-commerce demonstration system. Fourth, from the perspective of financial integration, Heilongjiang Province has strengthened cooperation in finance with the countries in Northeast Asia. It will promote the circulation of currency and financial intermediation to optimise the allocation of resources, create a stable financing environment for participating in the Belt and Road Initiative, and assist its more open and deeper cooperation in a wider range. With regards to the status quo of investment attraction, the total amount of foreign investment utilised in Heilongjiang Province continued to maintain a steady growth trend in 2010-2017. In terms of financial services, Heilongjiang Province has made certain progress in the areas of facilitation and corporate financing channels. Also, as China enters the new economic normal, investment growth in Heilongjiang has slowed. Fifth, concerning closer people-to-people ties, in the field of science and technology education, some of colleges and universities in Heilongjiang Province have succeeded in cooperation of running a school with others in foreign countries, which can boost the exploration of new educational mechanism
and mode and enhance the breadth and depth of educational cooperation and exchange.
Moreover, as an important window and a node city to the north, Heilongjiang Province has always played a leading role in the scientific and technological cooperation with Russia and has established several scientific research cooperation projects and cooperation platforms. In cross-border tourism, in recent years, the tourism industry in Heilongjiang Province has continued to grow in a positive trend. Based on the unique advantages of the original ecological environment, Heilongjiang Province's tourism industry has been vigorously developed.
Finally, the paper proposes feasible suggestions for Heilongjiang Province's better participation in the Belt and Road Initiative. Heilongjiang Province should explore a cross-border cooperation path suitable for the provincial conditions and the national conditions of neighbouring countries, and deepen all-round exchanges and cooperation with the Belt and Road countries. Heilongjiang Province should accelerate the construction of all-round infrastructure, speed up the construction of major international passages along the border, and promote trade and investment liberalisation and facilitation. Heilongjiang Province should improve the cultural exchange mechanism with the Belt and Road countries, encourage local cultural exchanges, and further expand domestic and international influence.
I. Heilongjiang Province's Progress from the Perspective of "Five Links"
Policy coordination
Heilongjiang Province has actively responded to and participated in the national strategy of the Belt and Road Initiative. Based on analysing the superior design and the advantages of the province, it successively proposed a series of plans that met the needs of the province's cooperation with other countries and of regional cooperation in Northeast Asia, which could deepen the integration of interests of all participating countries.
Preliminary exploration: the construction of the Eastern Land-sea Silk Road Economic Belt
In November 2013, the Third Plenary Session of the 18th CPC Central Committee adopted the Decision of the Central Committee of the Communist
Party of China on Comprehensively Deepening the Reform of Some Major Issues and clearly promoted the construction of the Silk Road Economic Belt and the Maritime Silk Road to form a new pattern of all-round opening. Therefore, the construction of the Silk Road Economic Belt has been established as a main national strategy for China to achieve the next stage of development in its internal affairs and diplomacy. In August 2014, the Standing Committee of the Provincial Party Committee studied the construction of the Eastern Land-sea Silk Road Economic Belt and proposed to incorporate the construction into national planning and to focus on connectivity of the national Belt and Road Initiative with the provincial Five Major Planning and Provincial 13th Five-Year Plan. This plan aims to accelerate infrastructure interconnection of Heilongjiang Province with neighbouring provinces and regional countries and promote the transformation and upgrading of international economic and trade cooperation. After the plan was submitted, President Xi Jinping made important instructions to encourage this idea definitely.
At the beginning of 2015, Heilongjiang Province issued a document named the Work Plan for Promoting the Construction of the Eastern Land-sea Silk Road Economic Belt. It proposes to build a cross-border transportation system for the Harbin-Manzhouli-Russia-Europe Railway, speed up the infrastructure interconnection, accelerate the construction of supporting service facilities, increase energy resources cooperation and development efforts, strengthen the construction of cross-border industrial parks and industrial chains, extensively carry out humanities science and technology exchanges and cooperation, so as to clarify the planning and construction goals of Heilongjiang Province's construction of the Eastern Land-sea Silk Road Economic Belt.
In-depth Advancement: the Construction of "China-Mongolia-Russia Economic Corridor" Longjiang Land-sea Silk Road Economic Belt
In December 2014, the Heilongjiang Provincial Party Committee Economic Work Conference clearly stated for the first time that it would speed up the construction of the "China-Mongolia-Russia Economic Corridor" Longjiang Land-sea Silk Road Economic Belt (from now on referred to as "the Longjiang Silk Road Belt"). The Longjiang Silk Road Belt is generally east-west,
westbound connecting the Russian Siberian and Baikal-Amur Railways to the hinterland of Europe, eastbound radiating Japan, South Korea and other Northeast Asian countries, and connect to North China, East China, South China. The construction can be summarised as being based on Heilongjiang Province and integrating into the Belt and Road Initiative. At the beginning of 2015, the Heilongjiang Provincial Government Work Report clearly stated to deepen the all-round exchanges and cooperation with Russia to promote opening up, implement the national strategic plan of the Belt and Road Initiative, and accelerate the construction of the Longjiang Silk Road Belt, and strengthening all-round exchanges and cooperation with Russia. As a result, the plan for the opening up of the new pattern of Heilongjiang Province is rapidly transformed from the construction of the Eastern Land-sea Silk Road Economic Belt to the construction of Longjiang Silk Road Belt with a clearer concept and richer content.
The "Longjiang Silk Road Belt" takes Harbin as the centre and goes west to Manzhouli to connect with the Eurasian Continental Bridge via the Russian's Chita; connects the Heihe River to the Siberian Railway to the north, echoing the Silk Road on the land; East to Suifenhe to the Russian Far East port that can reach Japan, South Korea, North Korea; south through Dalian into East China, South China and the Bohai Sea, the Yangtze River Delta, the Pearl River Delta; then connected to the Maritime Silk Road. The goals of "Longjiang Silk Road Belt" are to continuously improve the construction of an export-oriented economic system, create a convenient and smooth international channel, and build a cross-border transportation network for Russia and connecting Asia and Europe. The centre of this "net" is Harbin. The four veins are the Daqing-Harbin-Jiamusi-Tongjiang Railway, Suifenhe-Manzhouli Railway, the Harbin-Heihe Railway, and railways along the border, which link to the Russian Siberian Railway and the Baikal-Amur Railway to jointly form international cargo passage network to link Asia and Europe. This line will attract a large number of production factors to gather along the line, in which domestic and overseas industrial parks and cross-border industrial chains are essential elements to jointly build a new growth pole for Northeast Asia regional economy.
Table 1 Proposed time and name of strategies
Time National strategies Time Heilongjiang Provincial strategies
2013.09 The Belt and Road 2014.04 Eastern Silk Road Belt
2014.09 China-Mongolia-Russia Economic Corridor 2014.12 2017.08 Longjiang Silk Road Belt All-around openness pattern of "One Window, Four Districts"
Source: the author.
Comprehensive Improvement: A New Pattern of All-round Opening up of "One Window, Four Districts"
In April 2017, the 12th Party Congress of Hei-longjiang Province proposed to focus on optimizing the openness pattern by deepening the national strategy of the Belt and Road Initiative, actively participating in the construction of China-Mongolia-Russia economic corridor, strengthening cross-border infrastructure construction, improving the openness platform, developing export-oriented industries, expanding foreign exchanges and cooperation, and accelerating the formation of a new pattern of all-around openness. It is a strategic move by Heilongjiang Province respond to the important instructions of Heilongjiang General Secretary Xi Jinping during his investigation in Heilongjiang that Heilongji-ang should respond to the national strategy of the Belt and Road Initiative, participate in the construction of China-Mongolia-Russia Economic Corridor, and continuously expand the opening up. Heilongjiang Province has accelerated the promotion of cross-border infrastructure construction, the development of export-oriented industrial clusters, the establishment of an open platform, and the expansion of external cooperation in all directions, and established and improved the planning and design of a new pattern of opening up.
In August 2017, Zhang Oingwei, secretary of the provincial party committee, emphasised at the special meeting of the Leading Group for Promoting the Construction of the Belt and Road Initiative in Heilongjiang Province. He said that the whole province should thoroughly implement the spirit of important speech to Heilongjiang and Belt and Road Forum for International Cooperation Summit, more actively dock the Belt and Road Initiative and the construction of China-Russia-European
Economic Corridor, continuously improve the level of docking with the Russian Far East, create an important window for China's opening to the north, build Heilongjiang Sino-Russian Free Trade Area, key development and open experimental zone along the border, cross-border economic cooperation demonstration zone, logistics hub extending to Europe and Asia (i.e. "One Window, Four Districts"), which would accelerate the formation of a new pattern of all-around openness. "One Window, Four Districts" is Heilongjiang Province's serve to national strategy and to positive measures for development itself. In terms of geography, Heilongjiang Province will give full play to the traditional cooperation advantages with the Russian Far East and extend to Russia and Europe. In the field, we will transform from economic and trade cooperation to all-around cooperation.
Docking of China and Russia Relevant Planning
In recent years, China and Russia have successively signed the Outline of Cooperation between Northeast China and Russia's Far East and Siberia (2009-2018), the Outline of the Construction of China-Mongolia-Russia Economic Corridor, China-Russia Joint Statement on the Construction of the Silk Road Economic Belt and the Construction of the Eurasian Economic Union, China-Russia Cooperation Planning in the Russian Far East (2018-2024) and other documents. In May 2018, Heilongjiang Province established the Joint System of Heilongjiang Province's Cooperation with Russia, and Harbin City proposed A Three-year Action Plan for the Construction of the Belt and Road Initiative (2019-2021), which laid a good foundation for Heilongjiang's cooperation with Russia. Russia has also intensively introduced Social and Economic Development Plan for the Far East and Baikal Region, Development Concepts for Border Areas
Layout planning
- by Sea (ports): China's Guangzhou-Ningbo-Shanghai-South Korea's Busan-Japan's Niigata-Russian Far East's Vladivostok-Nakhodka-Vostochny
- on land (railways): Suifenhe-Manzhouli-Baikal-the Russian Siberian Railway and west to the Baltic coast and the ports of Hamburg and Rotterdam.
four main railway lines:
- Dalian Port-Tongjiang-the Russian Siberian Railway and Bea Railway
- Russia Vladivostok's ports-Suifenhe-Manchuria-Russia's Siberian Railway connected to the Hamburg and Rotterdam ports
- Blabovichsk-the Siberian Railway and the Baikal-Amur Railway
- Laoheishan-Dongning-Suifenhe-Hulin-Raohe-Fuyuan-Tongjiang-Mingshan-Xunke-Heihe-Mohe and other ports - the Siberian Railway and Baikal-Amur Railway.
- local expressways in the Harbin metropolitan area
- Suihua-Daqing, Harbin-Wuyuan, Shuangyashan-Baoqing, etc.
- first-class and second-class highways along the border roads (Mohe-Dongning)
- the boundary river bridges (Heihe-Dongning-Luogu River)
- Harbin Port and Jiamusi Port as the hub
- Heihe, Fuyuan and other ports as nodes
- Tongjiang Port-Russia's Khabarovsk-Gongqingcheng-the Strait through Heilongjiang River
- Fuyuan Port-Oianfu Railway-the Yujita Gangyuan Economic Zon-Yujita Deepwater Port Area
- Harbin Taiping International Airport as the hub (China-Russia-Central Europe-North America)
- regional airports as the nodes (Oiqihar, Mudanjiang, Jiamusi, Heihe, Mohe, Fuyuan and others)
- Sino-Russian cargo charter flights (Harbin Airport-Russia's Yekaterinburg Airport)
- Sino-Russian Mohe-Daqing oil transport pipeline
- the Sino-Russian eastern natural gas transport pipeline from Heihe River
- the second-line project of Sino-Russian crude oil pipeline
- the Mohe-Daqing double line
- the Sino-Russian East Line natural gas pipeline project
- the cross-border international transmission line in Heihe, the border of Sino-Russian and the transmission line of Harbin-Tangshan
- the International Communication Gateway Bureau in Harbin
- the Arctic Circle Europe-Asian optical cable communication backbone network(Russia's Murmansk-along the Arctic sea-through the Bering Strait from Vladivostok-via the Suifenhe River and Harbin)
Table 2
Channel layout planning of the infrastructure of HLJ Province Channel
Land and Sea
Combined
Transport
Railway Transport
Highway Transport
Water Transport
Aviation Transport
Pipeline Transport
Grid Transmission
Cable
Communication
Source: Song Linlin, 2018, pp. 35-42.
Such as the Far East Federal District and the Baikal Region, Leaping Social and Economic Development Zone Law, On the Free Port Law of Vladivostok, the Development Concept of Binhai No. 1 and Binhai No. 2 International Transportation Corridor, the Law on Prolonging Tax Preference for Large-scale Investment Projects in the Far East Federal District, and the Strategy of Social and Economic Development in the Far East and Baikal Regions Before 2025, which were beneficial to cooperation upgrade of laws and regulations between Northeast China and the Russian Far East.
II. Connectivity of Infrastructure
Vision and Action pointed out that connectivity of infrastructure is a priority area for the Belt and Road Initiative. In the past five years, Heilongji-ang Province has strengthened its connectivity with neighbouring countries in the field of infrastructure construction projects, jointly promoted the construction of cross-border multi-domain channels, and gradually built an infrastructure network that would radiate Northeast Asia and connect to Europe and America. And until now, Heilongjiang Province has made significant pro-
gress, especially in the expansion of land-sea transport routes, the normal operation of Harbin-Europe Train and Harbin-Russia Train, the construction of cross-border bridges, the opening of oil and gas pipelines, the opening of container hubs, the construction of high-speed railways, the renovation of hub airports and regional airports, and the construction of Sino-Russian information hub engineering project (Table 2).
The Construction of "Three Bridges, One Island, One Corridor, One Port"
Road connections are a prerequisite for unimpeded trade. Guided by Xi Jinping's important speech on Heilongjiang in 2016, Heilongjiang Province proposed to use "three bridges, one island and one port" as a breakthrough to accelerate infrastructure construction and promote multi-point docking of cross-border infrastructure. It is a crucial task to promote the province's in-depth participation in the Belt and Road Initiative and improve cross-border infrastructure interconnection and has made breakthrough progress.
Specifically, Heilongjiang Province has implemented the construction of Tongjiang Railway Bridge, Heihe Highway Bridge, Dongning boundary Highway Bridge and Heixiazi Island Port, and made a good connection with the Russian Binhai No.1 International Corridor, and form an interaction with Vladivostok Free port, which is bound to build a cross-border multiple transport corridor to extend to Russia, Asia and Europe, and integrate an interconnected network of infrastructure, including railways, highways, waterways, aviation and pipelines. The construction of "three bridges, one island and one port" is a new way for Heilongjiang Province to rely on domestic, regional cooperation and focus on opening up to Russia to create a new all-around openness to Europe, the United States, Japan, South Korea, Hong Kong, Macao and Taiwan. During the period of the Third Five-Year Plan, Heilongjiang Province has accelerated the improvement of the vital content of cross-border infrastructure construction.
Normal Operation of Harbin-Europe Train
On January 5, 2017, Harbin-Europe Train was formally incorporated into the China-European train chart and became a famous brand in China and Europe. At present, China's 3C products, daily necessities, textile products, Volvo vehicles are con-
tinuously sent to the hinterland of Europe, while imported auto parts and high-end daily necessities from Europe are also sent from Harbin to all parts of the country. With the increase of freight volume, the operating hours and operating costs of Harbin-Europe Train are further compressed, and a standardised, professional and normal operation mode has been formed. For the time being, Harbin-Europe Train has become a cross-border railway line for China's railway transportation to Russia with the shortest time, the lowest cost and the best environment.
The Construction of Land-sea Transport
Harbin-Suifenhe-Russia-Asia land-sea transport, centred on Harbin and supported by Harbin-Mu-danjiang-Suifenhe-Dongning industrial belt, with the help of the Russian Far East port groups, has opened "Chinese-Foreign-Foreign" international cargo corridors to Japan and South Korea and "Chinese-Foreign-Chinese" domestic trade goods cross-border transportation corridor, "Foreign-Chinese-Foreign" Eurasian international transport corridor, which is an important result on connectivity of China's the Belt and Road Initiative with Russia's Eurasian Economic Union and South Korea's Eurasia Initiative.
Harbin-Suifenhe-Russia-Asia land-sea transport has penetrated Europe and Asia, which has outstanding potential. The goods are transported from Harbin via Suifenhe Port and Russian Far East Port to Busan, South Korea, 224 km shorter way than via Dalian Port, and 1390 km and 740 km respectively to Niigata and Yokohama, and 2,000 km to the west coast of the United States. It can effectively accelerate Heilongjiang Province's economic and trade cooperation with the Russian Far East, Japan and South Korea. Since the official opening in June 2016, 94 trains and 10,500 TEU have been issued, with a volume of 158,000 tons and a value of 950 million yuan. The domestic trade goods import ports have been extended to 15 in Shanghai and Taicang, and the transportation commodities have been expanded to various varieties such as grain, petrochemical and timber. On April 11, 2017, the express route from Russia Oriental Port to Taicang Port in China was opened (only nine days from Dongfang Port to Taicang Port and then returning to Dongfang Port). The three flights per month are the most efficient and the shortest.
Table 3
Import and export of merchandise trade between China and Russia in 2013-2018
billion dollars
Accounted
Year-on-year growth, % for China's Year-on-year growth, % Accounted Year-on-year growth, % Accounted
Total Year .. . Volume import and export volume, % Export volume for China's export volume, % Import Volume for China's import volume, %
2013 89.2 1.1 2.1 49.6 12.6 2.2 39.6 -10.2 15.3
2014 87.17 5.6 2.2 49.11 7.2 2.3 38.06 3.7 2.1
2015 68.44 -28.6 1.7 36.74 14.2 1.8 31.70 3.1 2.0
2016 62.97 8.7 1.9 32.19 -34.5 1.5 30.78 -19.1 8.5
2017 84.85 17.7 2.0 43.29 17.8 1.9 41.56 31.0 2.2
2018 105.41 9.1 2.3 47.18 9.1 1.9 58.23 39.4 2.8
Source: Statistical bulletin (2013-2018). China Customs Administration. http://www.customs.gov.cn/.
Chim-Russia's iiigjartaiil export vohm? ill 2013-2018 Ulit: billidl¿011415
120 100
: III III III III llklit
2013 2014 2015 2016 2017 2013
I total D export I import
Fig. 1. China-Russia's import and export volumes in 2013-2018 in billion dollars. Source: Statistical bulletin (2013-2018). China Customs Administration. http://www.customs.gov.cn/.
The Construction of Oil and Gas Pipelines
The Sino-Russian crude oil pipeline starts from crude oil pipeline Skovorodino distribution station in the Russian Far East, crosses the Chinese border, passes through Heilongjiang and Inner Mongolia, and ends at the Daqing terminal station in Heilongjiang. The pipeline is nearly 1,000 kilometres long and has a designed annual oil transportation capacity of 15 million tons, with the maximum annual oil transportation capacity of 30 million tons. In January 2011, the Sino-Russian crude oil pipeline was officially put into operation. The Sino-Russian crude oil pipeline transportation contract of 15 million tons per year and 20 years is officially fulfilled. The Sino-Russian East Line natural gas pipeline project
includes the "Siberian Power" pipeline in Russia and the Chinese territory of the Sino-Russian East Line natural gas pipeline project (i.e. Heihe-Shanghai), totalling more than 6,000 kilometres. The newly built pipelines in the Chinese territory are 3,371 km, which are approved in phases according to the northern, central and southern sections (Heihe-Changling, Changling-Yongqing, Yongqing-Shanghai). The Heihe-Changling trunk line is 715 kilometres long, which is the most difficult route construction project with the highest technical requirements, the most difficult construction conditions. The project plans to start production in Heilongjiang and Jilin sections at the end of 2019. The whole line will be completed and put into use in 2021, which will connect the
Russian natural gas resources with key natural gas markets in Northeast China, Beijing-Tianjin-Hebei and Yangtze River Delta, and interconnect with the existing regional gas pipeline network. Therefore, the pipeline will supply clean and high-quality natural gas resources to the Northeast, Bohai Bay and Yangtze River Delta regions, reducing emissions of carbon dioxide and sulfur dioxide by more than 160 million tons per year1.
III. Unimpeded Trade
Vision and Action pointed out that investment and trade cooperation is an essential part of the Belt and Road Initiative. In recent years, Heilongjiang Province has focused on promoting the upgrading of foreign trade structure, deepening economic and trade cooperation with Russia, expanding trade cooperation, and accelerating the reform of trade structure.
Good Trends of Development of Foreign Trade and Economic Development
The current cooperation between China and Russia, especially in the Russian Far East, has entered the best period. Just as in September 2018, Xi Jinping judged the advantages of Sino-Russian cooperation in the Far East at the Fourth Eastern Economic Forum: China and Russia's geographical advantages of cooperation are unique, with each other's largest neighbours; the relationship between the two countries is at its best in history with comprehensive strategic cooperation partnership; cooperation policies are firmly guaranteed with the revitalization of old industrial bases such as Northeast China and the integration of the Russian Far East into national development strategy; the cooperation mechanism between the two countries is complete and efficient including Northeast China and the Russian Far East and Baikal Intergovernmental Cooperation Committee and the Industrial Council, and a dialogue meeting between Chinese and Russian local leaders. At the end of 2018, the trade volume between China and Russia exceeded 100 billion US dollars for the first time. Just as Premier Li Keqiang said at the press conference of the NPC&CPPCC, we could grasp not only big projects, trade in bulk commodities but also help small and micro enterprises, including cross-border e-commerce
1 https://www.sohu.com/a/244411504_738536.
cooperation. It is possible to cooperate with the aerospace industry and to promote non-governmental exchanges, which is to use all the energy and resources to consolidate the achievements of China-Russia economic and trade scale which had exceeded 100 billion US dollars, and try to double it (Table 3).
Heilongjiang Province is located in the centre of Northeast Asia and is the longest province bordering China and Russia. The economic and trade cooperation with Russia is the top priority of constructing Heilongjiang Province's opening up. The development orientation of "opening a window and building four districts" will realise the transformation of Heilongjiang Province's economic and trade cooperation with Russia to all-round cooperation, and cooperation with neighbouring regions will extend to cooperation with Russia and the European region. And finally, Heilongjiang Province can achieve the construction of a new pattern of opening up to the outside world, focusing on cooperation with Russia to promote the all-round revitalisation of Heilongjiang. Since the new century, Heilongjiang Province's import and export trade with Russia has grown at a faster rate and is in an upward spiral trend. Since 2007, the trade volume between Heilongjiang Province and Russia has exceeded 10 billion US dollars for the first time, achieving a leap-forward development of trade with Russia. In 2009, affected by the financial crisis, bilateral trade volume fell sharply. In 2011, the Sino-Russian crude oil pipeline was put into operation, and the trade volume increased significantly. In 2018, Heilongjiang Province's trade with Russia was once again greatly improved (Table 4).
In promoting the construction of the Belt and Road Initiative, Heilongjiang Province has continued to deepen exchanges and cooperation in various fields in Northeast Asia countries such as Japan, South Korea and Mongolia. In 2018, the import and export trade volume of Heilongjiang Province with Japan, South Korea, and Mongolia accounted for 13.6 per cent, 8.8 per cent, and 5.4 per cent of the province's total foreign trade, respectively, with a significant increase from 2017. It can be seen that there is still much room for cooperation and development in the future among countries in the Northeast Asia region (Table 5). At present, the trade volume with Singapore also has restorative growth somewhat (Table 6).
Table 4
Import and export of merchandise trade between Russia and HLJ Province in 2008-2018
billion dollars
Year Total Vol -ume Year-on-year growth, % port volume Year-on-year growth, % Import Volume Year-on-year growth, % Accounted for HLJ's import and export, % for China's import and export, %
2008 11.06 3.1 7.97 -2.5 3.09 20.9 48.3 19.5
2009 5.58 -49.6 3.27 -59.0 2.31 -25.4 34.4 14.4
2010 7.47 34.0 4.28 31.1 3.19 38.1 29.3 13.5
2011 18.99 154.0 4.35 1.5 1.464 360.0 49.3 24.0
2012 21.31 12.2 5.16 18.6 1.615 10.4 56.3 24.2
2013 22.36 5.8 6.91 34.0 1.545 -3.3 57.1 21.8
2014 23.26 4.1 8.93 29.2 1.435 -7.1 56.9 18.9
2015 10.85 -53.4 2.08 -76.7 8.77 -38.9 51.7 15.9
2016 9.19 -15.3 1.70 -27.7 7.49 -11.9 55.6 13.2
2017 11.09 22.5 1.63 -2.6 9.46 28.2 58.1 13.1
2018 18.19 64.7 1.12 -29.5 17.07 80.4 69.8 17.3
Source: Department of Commerce of Heilongjiang Province. http://www.hljswt.gov.cn/zongheyewu.php?cid=40. Harbin Customs District P. R. China http://harbin.customs.gov.cn/harbin_customs/467898/467900/467901/index.html. 2018 Heilongjiang Statistical Yearbook. Heilongjiang Bureau of Statistics. http://www.hlj.stats.gov.cn/tjsj/tjnj/.
Fig. 2. Import and export of merchandise trade between Russia and HLJ Province in 2008-2018. Source: Department of Commerce of Heilongjiang Province. http://www.hljswt.gov.cn/zongheyewu.php?cid=40. Harbin Customs District P. R. China http://harbin.customs.gov.cn/harbin_customs/467898/467900/467901/index.html. 2018 Heilongjiang Statistical Yearbook. Heilongjiang Bureau of Statistics. http://www.hlj.stats.gov.cn/tjsj/tjnj/.
Transformation and Upgrading of Traditional Trade and Remarkable Achievements of "Internet + Trade"
At present, the traditional trade province of Heilongjiang is vigorously promoting cross-border "Internet + trade" and exploring a new mode of
the cross-border e-commerce business. Harbin and Daqing were approved by the National Development and Reform Commission to become national e-commerce demonstration cities. Harbin, Mudanjiang and Suifenhe were approved by the General Administration of Customs to become
pilot cities for cross-border trade e-commerce services. Harbin Economic and Technological Development Zone, Suifenhe Border Economic Cooperation Zone, Daqing E-commerce Industrial Park and the E-commerce Enterprise Park of Mudanjiang Economic Development Zone were approved by the Ministry of Commerce to become a national e-commerce demonstration base. The e-commerce and logistics enterprises such as Heilongjiang SEG International Trade Co., Ltd., Heihe Zhongji E-Commerce Co., Ltd., Heilongjiang Ruston International Logistics Co., Ltd., etc. have been approved by the Ministry of Commerce as e-commerce demonstration enterprises of the Ministry of Commerce. The construction of cross-border e-commerce demonstration system in Heilongjiang Province has achieved remarkable results (Table 7).
IV. Financial Integration
Vision and Action pointed out that financial integration is an essential support for the construction of the Belt and Road Initiative. Whether it is facility connectivity or unimpeded trade, you need to invest a lot of money. The financial cooperation between Heilongjiang Province and the countries in Northeast Asia has promoted the circulation of money and financial resources to optimize the allocation of resources, create a stable financing environment for participating in the Belt and Road Initiative, and assist in a wider range of open and deeper cooperation (Yang Daoling & Xu Tingting, 2018, pp. 27-29).
The Status Quo of Investment Attraction
In 2010-2017, the total amount of foreign investment utilised in Heilongjiang Province continued to maintain a steady growth trend. As of November 2018, Heilongjiang Province has actually utilised 58.931 billion US dollars of foreign capital and utilised 3,057.396 billion yuan ($ 522.75 billion) of funds outside the province. At present, 51 in Fortune 500 companies have invested in 104 projects in Heilongjiang Province to promote the adjustment of the province's industrial structure and drive the development of emerging industries (Zhang Zhuomin, n.d.) (Table 8). At the same time, with the Chinese economy entering a new normal, the growth rate of foreign investment in Heilongjiang Province has slowed down (Table 9).
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Table 6
The statistics of the import and export situation of HLG Province's trade with Singapore in 2017-2018
billion dollars
Year-on-year growth, % Accounted Year-on-year growth, %
Year Total volume for HLJ's import and export, % Export volume Year-on-year growth, % Export volume
2017 (1-11) 1.05 0.1 5.7 0.72 -23.5 0.33 209.3
2018 0.43 -60.0 1.6 0.15 -79.1 0.28 -21.2
Source: http://harbin.customs.gov.cn/harbin_customs/467898/467900/467902/1354091/index.html.
Table 7
E-commerce demonstration system
City/zone
Category
Approval authority
Harbin, Daqing
Harbin, Mudanjiang, Suifenhe
Harbin Economic and Technological Development Zone, Suifenhe Border Economic Cooperation Zone, Daqing E-commerce Industrial Park, Mudanjiang Economic Development Zone, E-commerce enterprise park
Heilongjiang SEG International Trade Co., Ltd., Heihe Zhongji E-commerce Co., Ltd., Heilongjiang Russian Express International Logistics Co., Ltd. Etc.(8 enterprises)
National e-commerce demonstration city
Cross-border trade e-commerce service pilot city
National e-commerce demonstration base
E-commerce
demonstration enterprise
National Development and Reform Commission
China Customs Administration
Ministry of Commerce, China
Ministry of Commerce, China
Source: the author.
Table 8
The statistics of HLJ Province's foreign investment actually utilised in 2010-2017
billion dollars
Year The total amount of foreign investment Year-on-year growth, % Foreign loan Foreign direct investments Year-on-year growth, % Number of projects for contracted foreign direct investment (unit)
2010 27.6 9.9 1.0 26.6 12.7 147
2011 34.6 25.3 2.1 32.5 22.0 131
2012 39.9 15.5 0.9 39.0 20.1 98
2013 46.4 16.3 0.3 46.1 18.3 86
2014 51.6 11.1 0.7 50.9 10.3 102
2015 55.5 - 1.0 54.5 - 91
2016 59.0 6.3 0.8 58.2 - 117
2017 58.6 - 0.2 58.4 0.3 105
Source: Heilongjiang Statistical Yearbook (2018.2017.2016). Heilongjiang Bureau of Statistics. http://www.hlj.stats.gov.cn/tjsj/ tjnj/.
Table 9
The statistics of HLJ Province's direct investment in foreign countries in 2006-2018
billion dollars
Direct investment in foreign countries
Direct investment in Russia
Year Total volume Year-on-year growth, % Year Total volume Year-on-year growth, % Accounted for HLJ's total invest volume, %
2006 1.2 5.1 2006 1.2 37.2 97.6
2007 1.6 34.2 2007 1.2 3.4 75.2
2008 2.8 72.9 2008 2.0 67.2 72.8
2009 7.6 170.9 2009 7.4 263.2 97.6
2010 8.3 8.9 2010 4.5 -39.1 54.5
2011 5.9 -29.1 2011 3.7 -17.7 63.3
2012 7.3 24.1 2012 4.3 15.4 58.8
2013 10.8 48.1 2013 7.2 67.8 66.6
2014 19.4 80.2 2014 14.7 105 75.8
2015 69.0 414.4 2015 41.8 182 60.6
2016 52.5 -31.3 2016 30.2 -27.8 57.5
2017 / / 2017 / / /
2018 24.6 18.5 2018 5.8 -33.4 23.7
Source: Cao Xiaodong, et al., 2018, pp. 17-20.
Progress in Financial Services
Heilongjiang Province has accelerated the promotion of RMB cross-border settlement business and has made certain progress in the areas of facilitation and corporate financing channels. At the beginning of 2015, the Heihe and Suifenhe Customs officially opened the cross-border customs clearance business of Rubles. Compared with the customs clearance method of the previous ruble air transport from Harbin to Beijing and the customs declaration to Beijing, the efficiency and cost improved significantly. In November 2015, Heilongjiang Province launched the "Internet + Inclusive Finance" action plan to expand the payment and settlement channels in Heilongjiang further, and provide support for the development of cross-border e-commerce (Xiong Juan & Su Zheqiong, 2018, pp. 48-51). At the end of 2015, the Harbin Central Sub-branch of the People's Bank of China formulated and planned to build a regional financial service center for Harbin to Russia, focusing on accelerating the layout
of foreign-related financial settlement centers, establishing a sound cross-border investment and financing mechanism, accelerating the development of ruble cash business, setting up a cross-border e-commerce payment platform, accelerating the development of offshore financial services, and the development of a diversified financial support service system, which could promote the further improvement of efficiency and level of foreign trade2. In January 2016, the first-level foreign exchange branch of Industrial and Commercial Bank of China, Harbin Ronghui Branch, successfully settled in Harbin High-tech Zone and held a signing ceremony with Harbin Scientific and Technological Valley International Purchasing Service Center to build an international financial settlement centre. The International Financial Settlement Center focuses on the Russian-speaking CIS countries in Europe and Asia and integrates do-
2 People's Republic of China Ministry of Commerce.http://www. mofcom.gov.cn/article/resume/n/201512/20151201221033. shtml.
Fig 3. HLJ's foreign investment actually utilised in 2010-2017 in billion dollars. Source: Heilongjiang Statistical Yearbook (2018.2017.2016). Heilongjiang Bureau of Statistics. http://www.hlj.stats.gov.cn/tjsj/tjnj/
HLJ'foreign investment actually utilized in2010-2017 unit: billion dollars
2017 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
2016
2015 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 2014 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 2013 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^
2012 2011 2010
0 10 20 30 40 50 60 70
direct ■ foreign loan ■ total investment
mestic and international high-quality financial service resources to provide professional international financial services. Also, Heilongjiang Province has also actively played the advantage of Harbin Bank's ruble market maker, promoted the construction of cross-border e-commerce online payment and settlement platform between China and Russia, and strove to build a regional financial service centre for Russia and Northeast Asia. At the same time, Cross-border RMB business maintained growth. In 2016, the actual revenue and expenditure were 31.18 billion yuan (the US $ 4.65 billion). The two banks and the Russian bank signed a cross-border RMB financing agreement of 23.5 billion yuan (the US $ 3.5 billion) and realised capital of 8.5 billion yuan (the US $ 1.3 billion). The scale of the external loan under the overseas guarantee in business gradually increased. As of the end of December 2016, the loan balance under Heilongjiang Province's overseas guarantees was US$ 0.133 billion, a year-on-year increase of 1.23 times. Relying on the Bank of China and Harbin Bank, the establishment of a cross-border e-commerce payment platform between China and Russia has solved the bottleneck problem of long-term domestic exchange of Russian e-commerce companies and high online payment costs (Dong Weijun, 2017, pp. 16-18).
V. Closer People-to-people Ties
Vision and Action pointed out that the common ground is the social foundation of the Belt and Road Initiative. Heilongjiang Province actively inherits and promotes the spirit of friendly cooperation between the Silk Road, and extensively carries out cultural exchanges, academic exchanges, talent exchanges and cooperation, media cooperation, youth and women's exchanges, volunteer services, etc., laying a solid foundation for public opinion in deepening bilateral and multilateral cooperation, so as to build a community of interests that is culturally inclusive with neighboring countries.
Exchanges and Cooperation of Education, Science and Technology
In 2018, the Belt and Road Initiative spread to 70 countries around the world3. Heilongjiang Province universities, with their geographical advantages, have successively carried out Sino-foreign cooperation with colleges and universities in neighbouring countries and the United Kingdom and the United States. As of March 2018, 27 colleges and universities in Heilongjiang Province (24 public and three private) have conducted academic education in China and abroad in 9 countries including the United Kingdom, the United
3 National Information Center One Belt One Road. Big Data Center the Commercial Press. 2018.8.
Table 10
The HLJ Province's establishment of Confucius Institutes overseas
Year Chinese Foreign Place Memo
2004.11 Harbin Normal University Seoul Confucius institute Seoul, Korea The first Confucius institute
2006.12 Heilongjiang University Far Eastern National University (Far East Federal University) Vladivostok, Russia The first Confucius institute in Russia
2007.05 Heihe College Blagoveshchensk National University Blagoveshchensk, Russia
2007.11 Harbin Normal University Heilongjiang Daejin University Gyeonggi-do, South Korea
2008.02 University of Chinese Medicine Harbin Normal University London South Bank University London, the United Kingdom The First Confucius institute of Traditional Chinese Medicine
2010.10 Harbin Normal Amur National Humanities Kombay City,
University Normal University Khabarovsk Krai
2012.09 Harbin Engineering University Southern National Normal University Ukraine
Source: the author.
States, Russia, Australia, Canada, Ireland, Finland, South Korea and South Africa. A total of 178 undergraduate and above projects were held; among them, 85 projects were cooperated with 29 universities in Russia, accounting for 47.8 per cent of the total number of projects. And according to the Ministry of Education's 2015 study report in China of foreign students, Heilongjiang Province received foreign students up to 12085, of whom 30 per cent are Russian students, ranking first in the country (Meng Fanhong, 2018, pp. 75-77). At the same time, Heilongjiang Province has established 7 Confucius Institutes overseas to promote the overseas promotion of Heilongjiang Culture (table 10). Therefore, the smooth development of Chinese and foreign school-running projects is also a mechanism and model for Heilongjiang Province and relevant countries to explore educational cooperation and exchanges and to promote the breadth and depth of educational cooperation and exchanges. As an important window and node city to the north, Heilongjiang Province has always played a leading role in the scientific and technological cooperation with Russia. It has built cooperation projects such as Harbin Institute of Technology Sino-Russian Exchange of talents and
Scientific Research Cooperation Bases, and platforms for scientific and technological exchanges between Heilongjiang Sino-Russian Ship and Marine Technology Cooperation. At the same time, Harbin Science and Technology Innovation City, located in Harbin New District, at present, have signed 235 projects settled in 160 units, including 13 institutions in 9 countries covering the United States, Russia, Britain, and New Zealand and so on, which has gathered many high-end scientific and technological innovation resources, "The Northern Valley of Wisdom" and is also releasing huge scientific and technological potential for the economic construction of Heilongjiang Province and Harbin.
Development of Tourism Industry
In recent years, the tourism growth of Heilongjiang Province has continued to improve. Based on the unique advantages of the original ecological environment, the tourism industry has been vigorously developed, and "clear waters and green mountains are invaluable assets". In 2017, the province received a total of 164 million tourists and total tourism revenue of 190.9 billion yuan. The number of tourists and the total income of tourism were both higher than the national aver-
Table 11
The Statistics of HLJ Province's foreign inbound tourists by Northeast Asia relevant countries in 2013-2017
persons
Country 2013 % 2014 % 2015 % 2016 % 2017 %
Total 1450170 1322891 786811 908707 984643
Russia 972879 67.1 919053 69.5 609696 77.5 741779 81.6 824367 83.7
South Korea 185742 12.8 178980 13.5 122871 15.6 111199 12.2 82424 8.4
Japan 23879 1.6 21536 1.6 23314 3.0 22918 2.5 28427 2.9
Mongolia Singapore 550 12880 / 304 7839 / 148 2139 / 197 3090 / 250 6531 /
Source: Heilongjiang Statistical Yearbook (2018). Heilongjiang Bureau of Statistics.http://www.hlj.stats.govxn/tjSjAjnj/.
age4. In 2018, the province received a total of 182 million domestic and foreign tourists, an increase of 10.98 per cent over the same period of last year, receiving tourism income of 224.402 billion yuan(the US $ 33.43 billion), an increase of 17.55 per cent (Table 10).
Conclusion
In September 2018, General Secretary Xi Jinping went to the northeast to inspect and make an important speech at the in-depth promotion of the Northeast Revitalization Symposium. It is necessary to deeply integrate the Belt and Road Initiative and build an open and cooperative highland, which is bound to specify a direction for Heilongji-ang Province's better participation in the Belt and Road Initiative. At the same time, Heilongjiang Province should explore a cross-border cooperation path suitable for the provincial conditions and the national conditions of neighbouring countries, and deepen all-round exchanges and cooperation with the Belt and Road countries.
Heilongjiang Province should accelerate the construction of all-around infrastructure, speed up the construction of major international passages along the border, and promote trade and investment liberalisation and facilitation. The first is to rely on key development of open pilot areas, border economic ports, cross-border economic cooperation zones and other key areas along the border, and enhance the construction of key interconnection projects such as facilities in border ports, cross-border railway and port
4 Heilongjiang Provincial Culture and Tourism Office. http:// www.hljtour.gov.cn/lyzx/2018/content-6282.html
expressways, etc.; the second is to continue to expand overseas routes with the Belt and Road countries and strengthen the functions of international aviation hubs; the third is to make efforts to promote the construction of free trade zones, dock high-standard international economic and trade rules, and build trade rules on land with the Belt and Road countries, based on the construction of China-European trains; the fourth is to actively develop cross-border trade, cross-border tourism, cross-border processing, cross-border finance, cross-border e-commerce, cross-border logistics and other industries.
Heilongjiang Province should improve the cultural exchange mechanism with the Belt and Road countries, encourage local cultural exchanges, and further expand domestic and international influence. The first is to explore the establishment of funds for education cooperation and think tank exchanges with the Belt and Road countries and support the joint development of international exchanges in related fields; the second is to encourage universities to explore cooperative education mode with the Belt and Road countries, continue to strengthen national language capacity building, establish a talent training base, and make up for the talent gap in humanities communication; the third is to give play to the advantages of cultural resources in various regions, and jointly create special tourism products with the Belt and Road countries to promote the transformation and upgrading of tourism; the fourth is to hold activities such as international exposition and cultural festivals to promote humanities exchanges, strengthen international communication capacity and information communication, and enhance the influence of local publicity and exchange.
References
Cao Xiaodong, Ma Lin, Guo Lichun. (2018). New strategy of foreign investment in Heilongjiang Province under the background of supply-side reform. Foreign Economic Relations & Trade, 3. Dong Weijun. (2017). Accelerating the Construction of China-Mongolia-Russia Economic Corridor and Boosting the Old
Industrial Base to Revitalize. Northern Economy, 6. Li Yan. (2018). Making Great Efforts to Realize the "Five Links" Exchange and Cooperation, Actively Promoting the Construction of the "Belt and Road". The New Challenges and Countermeasures of the "Belt and Road" Initiative after the 19th National Congress of the Communist Party of China. Theory and Modernization, 2. Meng Fanhong. (2018). The Status Quo, Problems and Countermeasures of the Education of Chinese and Foreign Cooperative Education in Heilongjiang Province. Journal of Heihe University, 5. Song Linlin. (2018). Study on the Opening Strategy Upgrading in Northeast Asia. Take Heilongjiang Province as an Example. Northeast Asia Economic Research, 6, 35-42. SongLinlin. (2018). The current situation of Heilongjiang Province's economic and trade cooperation with South Korea in 2017 and the cooperation prospects in 2018. China-Northeast Asia Yearbook (2018). Social Sciences Academic Press (CHINA), 6, 516-519.
Yang Daoling, Xu Tingting. (2018). Capital Finance Advancement of the Belt and Road Initiative. China Foreign Exchange, 9. Xiong Juan, Su Zheqiong. (2018). Research on the Development of Heilongjiang Province and the Belt and Road Initiative.
Foreign Economic Relations & Trade, 1. Zhang Zhuomin. (n.d.). Heilongjiang Business Continuing to Open up and Entering the World. International business newspaper. http://epaper.comnews.cn/news.php?newsid=1207970
About the Author
Song Linlin - Associate researcher, Institute of Northeast Asian Studies, Heilongjiang Provincial Academy of Social Sciences
150028 No.1000 Shibo Road, Songbei District, Harbin, China [email protected]
Project: Heilongjiang Province, the special subject of the 12th Fourth Plenary Session of "Research on the Construction of New Pattern of All-dimensional Opening up in Heilongjiang Province", No. 18GJH786.
Участие провинции Хэйлунцзян в проекте «Один пояс и один путь»
СонгЛинлин
Аннотация. Провинция Хэйлунцзян, являясь одной из девяти пограничных провинций страны, имеет почти 3000-километровую китайско-российскую границу и 25 национальных первоклассных портов. В течение последних пяти лет провинция Хэйлунцзян, находясь в удобном географическом положении в центре СевероВосточной Азии, активно продвигает Национальную стратегию по реализации инициативы «Один пояс и один путь» (BRI), углубляет открытое сотрудничество со странами Северо-Восточной Азии. Власти провинции сосредоточены на развитии экономического сотрудничества и торговли с Россией, создавая новую модель открытости для внешнего мира. В статье подробно анализируются результаты деятельности провинции Хэйлунцзян по реализации инициативы «Один пояс и один путь» в рамках строительства «пяти звеньев», а именно: координация политики, подключение инфраструктуры, беспрепятственная торговля, финансовая интеграция и более тесные связи между людьми.
Ключевые слова: Инициатива «Один пояс и один путь»; провинция Хэйлунцзян; региональное сотрудничество в Северо-Восточной Азии; Россия; координация политики; связность инфраструктуры; беспрепятственная торговля; финансовая интеграция; более тесные связи между людьми
