Domestic economic situation, global financial crisis

Both sides agreed that the current global financial crisis has triggered turbulence and instability in the international financial market and in the world's trade and economy, posing grave challenges to the economic growth of the two countries.

Chinese President Hu Jintao (L) meets with Russian President Dmitri Medvedev in Moscow, capital of Russia, June 17, 2009.[Rao Aimin/Xinhua]

China and Russia shared the same or similar viewpoints and stance on the root cause of the current crisis, and the reform of the global financial system and the international financial institution.

Guided by the principle of equality and mutual benefits, nations around the world and international organizations should forge the broadest possible cooperation in politics, trade and economy and finance in a bid to overcome the financial crisis.

It is of special significance to try to unleash the maximum potential of various regional institutions and organizations and raise the financial market controllability.

The two leaders agreed to oppose global trade protectionism, saying the global financial system in the post-crisis era should be fair, equitable, inclusive and well-managed.

They also said that a new round of the IMF quota formula review and the reform schemes of the World Bank should be completed on time and that the emerging markets and developing countries should have a bigger say and broader representation in the international financial institutions.

The two sides stressed the importance of deepening bilateral cooperation in reforming the global financial system and in dealing with the fallout from the crisis.

A downward trend has been recorded in the trade volume, two-way investment and border trade between China and Russia due to the global financial crisis, they said. The two leaders agreed that China and Russia should work together to mitigate the negative impact of the crisis on bilateral trade and economic cooperation.

The two leaders signed a draft plan of the China-Russia investment cooperation, pledging to earnestly implement the draft plan and encourage enterprises of the two countries to carry out pragmatic cooperation in such areas as mechanical manufacturing, construction, the light industry, transportation, agriculture, communication, bank and insurance, technology, energy, the chemical industry, forestry and mining.

The two sides also made great efforts to work out a draft plan on the cooperation between northeast China and Russia's Far East and East Siberia regions.

The two leaders urged the relevant departments of the two countries to wrap up consultation at an early date on the draft plan, so that the plan could be submitted for approval when the heads of state of the two countries meet at the end of 2009.

The two leaders also spoke highly of the energy negotiation mechanisms between China and Russia and the inter-governmental agreement on oil cooperation signed by the two countries.

The two countries have been pushing forward all-round cooperation in oil, natural gas, nuclear power and electricity, which has raised the China-Russia strategic partnership of cooperation to a new high, they said.

The two sides also discussed nuclear power cooperation, one of their priorities for economic cooperation. They will launch the construction of the second phase of the Tianwan nuclear power project and the fast reactors for commercial purposes.

China and Russia should strengthen mutually beneficial cooperation in civil aviation manufacturing as well as in related projects that comply with the market needs and the civil aircraft development plan, they added.