China and Russia on Monday signed a memorandum of understanding (MOU) to jointly build 2 high-tech parks, one in each country.
The park in China will be located in the new town of Xixian Fendong in Shaanxi and will initially occupy four square kilometers. In Russia, 200,000 square meters of buildings will be built in the Skolkovo Innovation Center in Moscow, the Russian Direct Investment Fund said in a press release Tuesday.
Part of China’s revival initiative of the “Silk Road”, the high-tech parks are being developed by the Russian Direct Investment Fund (RDIF), Russia-China Investment Fund (RCIF), the Skolkovo Fund, and the local government of northwest China’s Shaanxi Province.
RDIF said under the agreement RCIF and the local government of China’s Xixian will establish a joint venture for the construction of the parks.
Authorities expect to open satellite offices for the Chinese park in the Chinese cities of Beijing, Shanghai, Guangdong and Heilongjiang, while the Russian park will open offices in Kaliningrad, Vladivostok and the Russian republic of Tatarstan.
RDIF plans to help the Russian park attract high-tech companies from both countries and promote development of international companies within the parks.
RCIF is a private equity fund created by the RDIF and China Investment Corporation, two sovereign wealth funds.
“We are interested in attracting Chinese investment into agrarian projects in Siberia and the Far East. In turn, as the world’s largest country with the biggest reserves of arable land we can supply China with food products, especially agricultural products,” Medvedev told his Chinese counterpart in Moscow.
Further consolidating the partnership, the two allies also signed a currency swap deal worth 150 billion yuan ($24.4 billion) between the central banks of China and Russia.
The Chinese Premier in Moscow also said Beijing will advance the establishment of a Eurasian high-speed transport corridor linking Beijing and Moscow, adding that the current priority should be the high-speed railway between Moscow and Kazan.