Export, import and invest into Russia

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Gazprom Neft offers anti-COVID air purification at its 2021 SPIEF stand

In Russia, it was proposed to legislate the concept of "creative industries"

By 2023, the EAEU should create conditions for a new level of integration of national labeling systems

Nabiullina assessed the place of Russia in terms of economic growth rates

"Green" food products will appear in Russia

The Ministry of Culture presented for discussion a project on the development of creative industries

New sets of building codes and standards come into force this summer

Technological boom in Russia: experts summed up the results of SPIEF-2021

Victoria Abramchenko held a meeting on the development of agriculture

The government approves the development strategy for the musical instruments and sound equipment industry

A record low indicator of business pessimism was recorded in Russia

SSTenergomontazh started production of low-voltage complete devices (LVCD)

The Bank of Russia received a flurry of applications after the publication of the list of pyramids

Office maintenance costs increased by almost a third

Vostok Oil will compete with the largest field in Saudi Arabia

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The Chinese media recently reported the country was tightening control over cryptocurrency exchanges and bitcoin mining. That statement sent the BTC down 15%, to $31,000 for the first time since February.

On May 21, China’s Financial Stability and Development Committee announced the government was introducing new measures to regulate cryptocurrencies. The statement also criticized the use of cryptocurrencies, in particular bitcoin.

The regulator highlighted the risks of cryptocurrency trading, saying virtual currencies “are not supported by real value,” their exchange rates are easily manipulated, and crypto trading contracts are not protected by Chinese law.

The BTC rate tumbled down hours after the statement was circulated. This is not the first time China dictates cryptocurrencies’ trajectory. Similar news had caused quite a stir before. So, why does the world of cryptocurrencies depend on China so much?

China banned cryptocurrency trading in 2019; at the same time, the country accounts for most of the world’s bitcoin mining. China produces cheap electricity and ASIC miners — the combination seems to naturally concentrate the computing power in that market.

Crypto traders closely follow the news from China. Any new ban or regulation can influence investor decisions to buy or sell their digital assets. If bitcoin mining is banned in China, the mining hashrate will decrease significantly, weakening all the top cryptocurrencies.

Last month, power outages in Xinjiang Province caused by a coal mine disruption forced 80% of China’s miners to remain temporarily idle. That led to a panic in the cryptocurrency market and a 10% drop in the BTC rate — because too many bitcoin farms depended on one country.

The recent clampdown on cryptocurrency trading will most likely discourage miners from basing their farms in China. They are looking at moving to South Asia, where electricity is also dirt-cheap but governments do not interfere with cryptocurrencies so much.

Once miners are distributed more or less evenly around the world, China will lose its power over the market, or at the very least, its influence will decrease. I am inclined to believe bitcoin and other top cryptocurrencies will skyrocket once most mining farms move to other countries.

Chinese regulatory changes along with Elon Musk’s recent announcement that Tesla will stop accepting bitcoin for car purchases have reduced the total cryptocurrency capitalization by $500 billion.

The cryptocurrency market is down now, but it won’t be long. Along with the miners, China is losing any levers of pressure it used to have to influence cryptocurrencies. This means we will hear fewer news involving China, while the cryptocurrency market’s capitalization will, if anything, grow.

By Roman Vybornov,Chief Business Development Officer at Bitexfin Crypto Platform and Bitexcard Project

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In the next five years, PhosAgro will invest 16 billion rubles in the Saratov region

Illegal timber harvesting has decreased by almost a quarter

Rosseti plans to invest 20.8 billion rubles in the development of the energy system of the Voronezh region by the end of 2025

The Technical Commission assessed the implementation of measures to modernize reference laboratories for export purposes

The expert assessed the prospects of the electric scooter rental market in Russia

Insurance market growth in 2021 will not exceed 10 percent

It will be possible to hand over the refrigerator for recycling at the expense of the manufacturer

New wastewater treatment method turns it into a source of drinking water and electricity

Requirements for public transport have been developed to ensure accessible conditions for people with disabilities

Burden of the day: large chains want to be banned from working at night and on weekends

How to find an investor for a venture fund

Fines for non-fulfillment of government procurement quotas may earn in 2022 - Rossiyskaya Gazeta

THE PRESIDENT OF RUSSIAN FEDERATION DURING HIS SPEECH AT SPIEF-21 INSTRUCTED THE FAS RUSSIA TO IMMEDIATELY PREPARE THE RELEVANT DRAFT LAW | Federal Antimonopoly Service

Retailers appreciate the offer to close retail chains for the weekend

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The Bank of Russia will allow the issuance of green bonds according to Russian standards

Russia ranked 9th in the world in terms of competence in business and technology - research

A new mayonnaise production was launched in the Saratov region

Business will pay up to 140 billion rubles for the disposal of goods and packaging

On Tuesday, the construction of a nuclear power complex of the future began in the Tomsk region

Press Release: Purina Reveals 2019-2020 Social Report and Identifies 8 Key Trends in Pet Welfare

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All the violent political passions serve to form, in the end, high-quality public administration in the country. But it often does not depend on the fateful political accomplishments, but on meticulous organizational work and trifles. About what factors and events have recently affected effectiveness of public administration in Russia, we are talking with the supervisor of the HSE Institute of Municipal and Public Administration, Head of Department of policy and management of the Faculty of Social Sciences at the Higher School of Economics, Professor Andrei Klimenko.

“We know our problems without turning to indexes”

— Andrey Vitalievich, is effectiveness of public administration measurable?

— Yes, it is. Nevertheless, these measurements, indices and indicators are also subject to criticism and analysis. In fact, there are a lot of meters; they are popular among researchers, and, to a lesser extent, among public administration practitioners. For example, there is World Bank government quality indices, so-called WGI — World Government Indicators. They include a number of indices, such as Regulatory Quality, Control of Corruption, Rule of Law and other indices.

Doing Business index, also introduced by the World Bank, measures the comfort of the regulatory environment for business, this is also the quality of management. There is an index of global competitiveness of World Economic Forum, including index reflecting Regulation quality. Many private thematic indices are created by Research organizations dealing with certain topics. So, Transparency International supports the corruption perception index.

— In this regard, I have a double question. What does Russia look like in international indexes? What aspects of measurement and what indicators do you consider as most relevant to us now?

— I would change the question a little bit. You see, for us these indices are relevant with some clauses. True, at one time, in my opinion, in 2012, we inserted some index values even in strategic documents. Now this has been abandoned. Not because everything is bad: in fact, we successfully advanced with the Doing Business index, for example.

Yes, we have a low position on the corruption perception index. We already know that there is a problem. However, I would not set the tasks of our public administration, based on indices. Indices do not specify our tasks, they just illustrate some situations. Moreover, indices are very often politicized, and the methods in their base, for example, for Doing Business index, are very even subject to criticism. There are many questions concerning the indices themselves. We do not have self-sufficient task to reach the first places in the ratings, but we are moving in accordance with general trends.

“We have problems with setting strategic goals”

— I understood your answer, in this case I reformulate the question. How do you think, what aspects of public administration in Russia are the most problematic ones now?

— This is my personal view: we have problems with setting strategic goals, choosing effective ways and means to monitor the achievement of goals. One strategic document is adopted, then another one, and a detailed analysis of problems and errors in the course of their execution is not carried out. Methods of achieving goals are very important, their justifications are needed, as well as the development of the system of evidence-based policies. Besides, we have the task of improving efficiency of public administration.

This is one of the key areas of reform, in particular in the field of control & supervisory activities. But there are often kickbacks back; this is also very important point in terms of resource constraints, when businesses, especially small and medium-sized businesses, can hardly adapt to changes in the regulatory environment.

— I imagine if any official now heard what you said about strategic goals, he would say: “Well, here we have so many strategic goals, we have documents where all these goals are written. There are national projects, there are national goals, there are roadmaps on some or other issues. ” What would you say to that?

— I would say writing a strategy paper is not a guarantee of achieving its goals. We manage to write more strategic documents than we are really able to execute. This applies primarily to sectoral and regional strategies.

Endless writing and updating strategies takes a lot of time and money. In few regions only the strategy is taken seriously, monitored, promptly adjusted according to a changing situation. Only direct costs for the preparation of documents are estimated at tens of billions of rubles. Because officials are busy, experts are busy… And huge sums are spent to pay outside experts to develop strategies for regions! This is a practice that requires a critical attitude.

Besides, our strategies are mostly long-term ones, although in conditions of turbulence, period of 4–5 years is already becoming strategic. Long-term strategies, of course, are needed, but first of all in areas where there are clear sustainable trends, for example in demography, natural resources, technological development, so on. Institutional reforms that are not being realized in one or two years need to be an important policy focus.

“I am not ashamed of what I have done”

— It is clear that the answer again can be extensive, to a whole lecture, but: what are the most striking events that affected the effectiveness of Russian public administration in recent years?

— A lot of tasks have been completed, and I am not ashamed of what I have done in this sphere, in general. First of all, administrative reform, reform of public services in the early 2000s. The impact of these reforms has varied. Administrative reform led in the future to the creation of multifunctional centers, and portal of digital services.

Important milestone was law on the provision of public services of 2010: its implementation of which changed the face of the executive power. It has become more human, as they say — client-oriented. A necessary step was the introduction of a regulatory impact assessment system and in general regulatory reform based on evidence-based policies. Important direction in this area is the reform of control and supervisory activities, as well as adoption in last year of two laws on state control and mandatory requirements. Work in this direction involves the abolition of unnecessary regulations, simplification and creation of understandable business terms, improving the business climate as a whole.

— Besides simply reducing some controlling functions that we know today will be cancelled, and tomorrow will be reintroduced, what is the most important in the latest control and supervision reform?

— It is important that control conditions become reasonable, understandable and predictable for business and citizens, so that control ceases to be only a punitive tool but offers measures to prevent violations. As part of the reform, a gradation of the control regime is introduced depending on the degree of danger of the object, assessment of potential damage. In the event of a threat to life, public health, damage to national security, control should be more stringent. In other cases, it can be significantly reduced. So we can redistribute monitoring resources for areas that are really dangerous. In addition, modern digital technologies, artificial intelligence allow the introduction of effective automated remote monitoring system aimed at prevention of dangerous situations.

What else is needed

— Could you name foreign practices that you look at with interest and that could be useful for the Russian Federation?

— I would mention a behavioral approach in regulation, that is, informing and creating motivation systems that lead to the desired behavior of organizations or citizens. As well as establishing regulatory mechanisms that do not involve direct control and supervision, but create attractive patterns of behavior, push for the right decisions. Such methods are quite efficient in the field of energy saving, waste control, etc. The United Kingdom, the United States and other countries have created special groups by the government, which develop appropriate approaches.

— In your opinion, should Russia expand the practice of involving the judicial system in public administration? Expand the number of situations where we can sue in court with state, challenge administrative decisions? I understand that in some countries there is even a special type of court for such matters.

— I look at this topic only from the position of public administration, I am not a lawyer. From this point of view management is based on the law, on normative legal acts. It is clear that the validity of laws and the effectiveness of their application is critical for good governance is. If the court does not promote clear compliance with the laws, does not prevent their evasion, naturally, no matter what good regulations we adopt, they will not work. Therefore, of course, this is a key plot for public administration. At the same time, it is important that public administration do not overload the judicial system, including the possibility of pre-trial appeal of decisions.

“Our civil service system is archaic”

— How do you assess the existing system of civil service in Russia? When it was established, there were very serious disputes, but now we can see how it works in recent decades.

— About disputes — I wouldn’t say so, but discussions were wide. I believe our system of the civil service is archaic and not very attractive from the position of the labor market. This also applies to the compensation system, and, most importantly, to career elevator systems and activity performance assessments.

Over the past years, a plenty of interesting proposals have been formulated, recorded in decrees and other regulatory documents. However, for various reasons, not all of them were implemented. This is largely due to limited resources and a system of responsibility at the public service.

We have a large share of the public sector in the economy, and its functioning directly depends on quality of civil servants. Accordingly, conditions should be created for attraction to the civil service of the best specialists, their proper training and retraining should be provided. The personnel potential of the civil service should be competitive with the private sector. All this becomes the strategic task is not for one year.

-- Last question. When newspapers report that the state allocates money for a particular project, the public both on social networks and in conversations immediately says: “Yeah, understandably, they want steal money. ” That is, the assessment of the level of corruption is very high, but I am not sure that “popular” opinion is true. Can we say something about evolution of corruption level of our state apparatus?

— We read in the media almost weekly reports on corruption cases of officials of enough high rank. That is, a certain struggle is underway. Income declarations are filled in and analyzed. Creation of electronic services and multifunctional centers largely eliminated conditions for “domestic” bureaucratic corruption. However, obviously, corruption persists.

When public money appears, the foundation for corruption immediately arises, because stealing from the state is often easier than from a private company. Critical in this regard is objective monitoring and control of the efficiency and targeted use of budget funds, which are carried out by the Accounts Chamber of Russia and relevant bodies in regions.

Interviewed by Konstantin Frumkin

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Experts predicted growth in investment in the Russian economy

What will the abolition of VAT give to growing catering companies

The Polyus plant launched the production of the first Russian display case for ice cream with a mode of -25 ° С

The Ministry of Construction of Russia for the first time approved a set of rules for the design and construction of buildings from large-sized modules

Producers announced stability in the Russian vegetable market

The most promising Russian products for export named

Competence Center Experts Increase Productivity in the Cosmetics Industry

The first concrete will be poured into the base of the Brest reactor on the eve of the Day of Russia

Another waste processing complex will be built in the Moscow region

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AFTER SWITCHING TO THE NEW PRINCIPLES OF PRICING FOR DRUGS, THE TOTAL BUDGET SAVINGS MAY AMOUNT TO AT LEAST 35 BILLION RUBLES PER YEAR

THE FAS RUSSIA REPORTED THAT THE DEVELOPMENT OF THE DRUG PROVISION SYSTEM SHOULD BE CARRIED OUT THROUGH DIGITALIZATION

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Qiwi co-founder Boris Kim leaves the post of the head of the company

Daily news, Russian news: They are not going to disconnect us from SWIFT. Why? Very simple. It is not beneficial to anyone

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Russia’s Federal Treasury may start collecting taxes from individuals’ digital ruble wallets as early as next year, Prime reports.

This decision will directly affect the digital currency market, says Michael Ross-Johnson, CEO of the Chatex p2p cryptocurrency platform.

The country is vigorously preparing for the introduction of the digital ruble; infrastructure is being created, and first payments are being made. As the Central Bank said earlier, the digital ruble will subsequently replace cash.

“The digital ruble is the third form of money (alongside cash and non-cash rubles) the government wants to introduce to be able to more closely track cash flows, and make the work of its economic agencies (state or commercial ones) more transparent,” the expert explains. “In a word, once the digital ruble is introduced, all mutual settlements between individuals and businesses, businesses and the state, and between individuals will become traceable to a much greater extent than now. The digital ruble is the national financial system’s future that’s already here.”

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Russia is actively switching to information modeling in construction

Dmitry Volvach: digital transport corridors will become a competitive advantage of the EAEU

Putin announced the exit of the Russian economy from a difficult situation after the pandemic

SPIEF: The digital ruble will replace cash, the Ministry of Transport will create a new low-cost airline

Expansion to the West. Sibagro expanded its pig-breeding business by purchasing the assets of Promagro

The system of uniform requirements for EAEU products will appear within two years

Expert assesses whether Belarusian potatoes will help bring down prices in Russia

The government approves the list of grant recipients among world-class research and education centers in 2021

Foreign road carriers will pay fines for traffic violations

Developers will receive benefits for the construction of hotels in Russia

Masr will invest over 10 billion rubles in Russia

Eggs for vaccines will begin to be produced in Russia

Investments in waste processing will amount to 30 billion rubles this year

More than 300 manufacturers took part in the water labeling experiment

Customs is developing a new procedure for processing online goods

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The distributed ledger technology initially meant to provide financial inclusion for everyone and expand access to financial services. But China is currently considering using blockchain in its social credit system that can limit people’s access to financial services, while the central bank digital currency (CBDC) has made the issue of transaction privacy all the more relevant. Participants in the national blockchain conference, Blockchain/Finance 2021, organized by the Distributed Ledger Technologies Center of St Petersburg State University, discussed financial and social risks associated with blockchain. Here are the most important topics of the discussion.

Blockchain and the new inequality

Only several years ago, experts and journalists vied to announce that blockchain would make e-wallets available to people who do not have a bank account, provide access to cryptocurrencies to those without access to fiat money, and drastically reduce expenses on money transfers, especially international ones, says Artem Genkin, Doctor of Economy, Professor, President of the NPO “Center for Protection of Bank Clients and Investors.” Let alone the opportunity to attract investments for business through ICO.

“Today, blockchain is not considered a cure-all anymore and the question is, would this technology be on the side of good or evil, financial inclusion or digital inequality,” Artem Genkin notes.

It seems that the distributed ledger technology can increase digital divide and make it more difficult to overcome. The social credit system in China is an example: the system becomes a means of control over access to financial services. Plans call for improving it with blockchain, which will make it possible to access social credit data and monitor it at the national level.

Depending on the social score, there could be at least four kinds of restrictions, such as ban on deals with certain contractors, including the state; ban on deals with certain kinds of assets; restricted access to financial resources and even employment. A powerful tool of financial pressure on low-ranking individuals and organizations is being formed.

Transaction privacy remains open to question

The ability to make anonymous transactions has fueled interest in blockchain and cryptocurrencies for a long time. Today, it is becoming clearer that blockchain will rather allow for controlling transactions, at least as relates to central bank digital currencies. The concern over the privacy of payments was expressed by both market professionals and the public in the European Union (following the discussion of the concept of a CBDC by the European Central Bank), says Dmitry Kochergin, Professor at the St Petersburg State University Department of Economics. To customers, privacy is more important than security.

According to the expert, the digital currency technology implies enhanced control over cash turnover due to its programmability and traceability, and gives the state power to control over money that citizens spend. It is difficult to control cash turnover, but it would be possible with central bank digital currencies; in China, the digital yuan is supposed to replace cash. As to the digital ruble, the regulator’s concept does not imply cash substitution. Yet, the Central Bank makes it clear that the involved agencies will receive full information on payment sender, recipient and purpose, with independence and anonymity of transactions secured for their participants, HSE Banking Institute Director Vasily Solodkov says.

Payment privacy can be maintained during offline settlements in central banks’ digital currencies. However, China has once again mentioned restrictions on the number of such transactions as well as their volume, Dmitry Kochergin notes.

Pandemic acceleration

Obviously, blockchain technology can generate a plenty of private social ratings that assess a certain activity of participants, reputation score of internet users based on their activity, and others.

The coronavirus pandemic has provided a sort of an impetus for the development of such ratings, or evaluation systems, including those that utilize blockchain technology. They include the so-called immune passports with vaccination records, whose holders will be provided with a greater scope of certain services or easier access to them. Examples include the Digital Health Pass project by IBM, as well as the COVI-PASS system of digital health passports which utilizes blockchain and is proposed for introduction in fifteen countries, including six EU countries and the United States, and others.

Such ‘passport of immunity’ can become a driver for accumulation of expansive personal biomedical data, along with information on a person’s financial transactions and social activity. At the same time, a person will be a full-fledged citizen only after agreeing to be a source of big data. The idea of Covid passports has already caused concerns, such as from certain staff members of the World Health Organization (WHO): according to WHO Representative to Russia Melita Vujnovic, introduction of Covid passports could result in increased divide.

Ethics as top priority

According to Viktor Dostov, Board Chairman of the Russian Electronic Money and Remittance Association (REMA), we cannot state categorically that the control over people’s actions has become easier since blockchain emerged. China’s social credit system did not include it initially — yet, implementation of blockchain could make it more efficient; what comes first is a social task, not technology, Dostov says. China’s national digital currency project seems to be driven by social and political motivations as well; technology has only provided opportunity for its implementation, Dmitry Kochergin adds.

On the other hand, we see an obvious and immense growth in personal information gathered, with technologies actually providing plenty of opportunities for monitoring and control, which range from analyzing social media profiles to examining cash receipts information, Dostov agrees.

In this context, making sure that such efforts to collect personal data have no discriminatory goals or purposes is of particular importance, as is the ethical assessment of any technological solutions that imply restrictions or benefits for their users. After all, the blockchain technology is neutral in itself, which means it can be used both to increase and reduce the divide, Artem Genkin emphasizes.

“What matters is the purpose: if used improperly, the technology will increase the digital divide rather than reduce it. We have to be very careful here, with ethics being top priority,” the expert concludes.

By Olga Blinova

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Veronika Nikishina: The effectiveness of the North-South trade corridor will depend on the coherence of the work of all stakeholders, including the regulatory authorities of the countries of the region

The Ministry of Construction of Russia concluded an agreement on the development of public-private partnership in the housing and utilities sector

During the development of the Baim ore zone, the mechanism of the Far Eastern concession will be used

Investments in the construction of a new mine in Transbaikalia will exceed 7.9 billion rubles

Russia is actively switching to information modeling in construction

Dmitry Volvach: digital transport corridors will become a competitive advantage of the EAEU

Putin announced the exit of the Russian economy from a difficult situation after the pandemic

SPIEF: The digital ruble will replace cash, the Ministry of Transport will create a new low-cost airline

Expansion to the West. Sibagro expanded its pig-breeding business by purchasing the assets of Promagro

The system of uniform requirements for EAEU products will appear within two years

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While many countries are still counting their losses from the pandemic, China has already emerged from the crisis. The country’s GDP surged by more than 18% in the first quarter of 2021. China is home to at least 30% of the world’s entire middle class; it is a promising destination to consider for a new sales market. Most of the industrial production is also concentrated there, and the cost of production is 75–80% times lower than that of making similar goods in Russia. Which goods would it be profitable to export to China, and which ones should rather be imported into Russia?

Great demand, limited supply: What to export to China

China generates the largest share of the world’s fish market revenue. The figure is quite impressive — almost $85 million, or 7 times the fish market in Russia. Fish consumption is growing every year in China, which makes the country attractive for Russian companies working in this business: 500 g of frozen salmon cost RUR 1,150 ($15.7) there, against RUR 750 ($10.2) in Russia.

The second most popular product is flour. The Chinese market in this segment grows 3.5% every year. Two kilograms of flour in China cost RUR 188 ($2.5) while in Russia, the same amount is sold for RUR 82 ($1.1).

Honey in China is more in demand than sugar. China’s honey market is estimated to bring $106 mio in profit in 2021, which is 52 times higher than Russia’s estimate. In China, 0.5 kg of honey will cost RUR 1,500 ($20.5) against RUR 520 ($7.1) in Russia.

China is consuming increasingly more vegetable oil, around 6.1% more every year. Russian vegetable oil can be commonly found in grocery stores and is in demand by hotels, restaurants and food production facilities. One liter of vegetable oil in China costs RUR 158 ($2.1) against RUR 98 ($1.3) in Russia.

Imported dairy products account for a significant share of the market as animal farming is not the most rapidly developing industry in China. The stable demand is supported by the European cuisine trend. One liter of milk in China costs RUR 130 ($1.7) against RUR 84 ($1.1) in Russia.

Chinese consumers and the younger generation, in particular, are highly focused on maintaining a balanced diet. The grits and cereal market grows by 5.6% annually. A 500 g pack of oats in China costs RUR 120 ($1.6) against RUR 65 ($0.88) in Russia.

The Chinese confectionary market shows consistent 2.9% annual growth. A standard pack of chocolates (180 g) costs at least RUR 117 ($1.6) there while in Russia, it can be bought for RUR 59 ($0.8). A pack of vanilla ice cream (50 g) costs RUR 183 ($2.5) against RUR 47 ($0.64) in Russia.

Chinese consumers love Russian juices and lemonades. One liter of juice costs RUR 160 ($2.1) in China against RUR 90 ($1.2) in Russia.

Foreign alcohol is extremely popular in China, especially Russian wines, which cost significantly higher there than back home, or RUR 1,120 ($15) per bottle against RUR 350 ($4.7) in Russia. Beer is equally well-loved. Russian brews sell for RUR 78 ($1) per 450 ml. Russian vodka will cost RUR 1,178 ($16) per 500 ml in a Chinese supermarket against RUR 450 ($6.1) in Russia. The alcohol market in China is expected to grow further by 7.51% every year.

China is the biggest importer of Russian timber and processed wood, specifically, profiled logs, wall panels, thin planks, railroad sleepers, sheeting boards, planks and bars. COVID-19 restrictions have curtailed imports thus boosting prices in the segment. Industrial wood costs RUR 21,829 ($298) per 1 cubic meter in China against RUR 9,500 ($130) in Russia.

Light from the East: What to import from China

China is one of the world’s leaders in foreign trade, accounting for biggest exports of clothing, shoes, furniture, textile, watches, computers and other devices, various equipment, car and bicycle parts.

Clothing and interior items top China’s most popular exports. The second most popular niche is car parts and spare parts for various kinds of equipment. Supplying similar products from Europe to the Russian Far East would be substantially more expensive and time-consuming, Chinese prices also being more attractive.

Cosmetics, including facials, creams, makeup products and coconut oil, is also a lucrative type of export for China. Household items made in China are also quite popular. Russia imports kitchen utensils, flashlights, toys, vacuum insulated food containers and stationery. It is only the tip of the iceberg.

Lighting equipment is currently one of the Chinese imports with the highest profit margin. China has the world’s largest offer of all kinds of lighting, its high quality making it possible to mark up prices by up to 200%. Along with fitness, tea and coffee accessories and electric scooters, lighting is the most promising import category in the short-term perspective.

Another advantage of working with China is the fact that its manufacturers frequently release new products that are not yet available elsewhere. If promptly discovered and displayed on the Russian market, these products are a guarantee of extremely high profits.

By Dmitry Kovpak, entrepreneur, author of books and training programs for doing business with China, founder of DaTrade wholesaler platform

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Russia ranked 11th in Europe in terms of investment attractiveness

Russia will develop a standard for the construction of roads for drones

Anatoly Yanovsky: "Coal will be in demand on the world market in the long term"

Russian Post will start delivering cargo by drones

Exports in the east of the Russian Federation will grow due to the renewal of the transport network

European manufacturer of building materials will continue to work in Russia

Russian Post will deliver domestic goods to Europe for sale on Amazon

Moscow will develop joint projects with British investors

Mail.ru Group and "My Business" will help in the digitalization of small business in the regions

In 2020, Russia ranked 4th in the world among turkey producers

Henkel increases investment in production in Russia

"Russian Post" together with "Yandex" launch the delivery of parcels and Internet orders in an hour

Agrotekhpharm has begun construction of the world's largest vertical strawberry farm

The Ministry of Economic Development proposed to develop a strategy for supporting the creative industries in Russia

"When the borrower is overdue, it's too late to work with him": the history of the service for paying for loans and housing and communal services with cashback

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The introduction of the digital ruble in Russia, according to the concept the Bank of Russia presented last year, can end up in a ban on cryptocurrencies.

Director of HSE Banking Institute Vasily Solodkov shared his forecast at the national blockchain conference, Blockchain/Finance 2021.

The interest in cryptocurrencies is fuelled by their obvious advantages such as cross-border payments, anonymous transfers, as well as the system’s decentralized registry based architecture, the expert said. Cryptocurrencies are quite capable of offering competition to fiat currencies. However, the digital ruble the way it was proposed is unlikely to be competitive in relation to conventional cryptocurrencies.

“Does the ruble, cash or non-cash, have any cross-border functionality now? Why should the digital ruble suddenly have it? This has nothing to do with technology,” Vasily Solodkov notes.

A centralized register, if anything, increases the risks. If banks no longer provide payment services, it will significantly limit funding opportunities for small and medium-sized market participants. Furthermore, the Central Bank is the trendsetter on the market, which means a situation where cryptocurrencies are banned is also quite possible.

“I wrote about this even before a similar thing happened in China; we have seen the bitcoin collapse exactly on news from China, where the regulator banned bitcoin operations,” he explained.

At the same time, the digital ruble, unlike any cryptocurrency, can become a full-fledged currency — this means it will be accepted as legal tender and equated with cash and non-cash money for unrestricted exchange, Solodkov says.

The challenge for regulators around the world is not cryptocurrencies, but stablecoins, notes Dmitry Kochergin, professor at the Department of Economics, St. Petersburg State University.

“The role of cryptocurrencies in payments is negligible, as is their market capitalization, for all the hype around all major cryptocurrencies. Stablecoins like Diem (ex-Libra) from Facebook are another matter,” Kochergin says.

The expert reminded that the platform already has 3 billion users, which exceeds the populations of the United States, the European Union and China taken together.

“Global stablecoins challenge traditional finance and the role of central banks as initial money generators,” Kochergin added.

The Blockchain/Finance 2021 conference was organized by the Center for Distributed Ledger Technologies at St. Petersburg State University.

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British OneWeb will appear in Russia in 2021

Federation Council approved the law on penalties for the circulation of unmarked products

iHerb is going to localize the production of vitamins and dietary supplements in Russia

The cost of the "general cleaning" of Russia has become known

Ilya Chizhevsky: It is necessary to understand the investment appetites of business

Prices for pet food will rise in Russia

The head of "Rostec" commented on the US sanctions

The volume of innovative treatment in Russia is still limited

The Ministry of Industry and Trade of Russia will conduct an experiment on the labeling of medical devices

Analysts compared patent protection systems in the pharmaceutical industry

The pandemic has become a catalyst for solving acute pharmaceutical problems

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The construction of a plant for the production of French fries has started in the Tula region

The production of cars of the Russian brand of the executive class "Aurus" was opened in Tatarstan

Open testing of encrypted SIM-cards began in Russia

Russian Post will test a new type of mailboxes in homes

Maxim Reshetnikov: expanding the list of industries for infrastructure support will make it possible to increase investment activity in the regions

Production of domestic smartphones based on Aurora OS will begin in Russia

Why "Yandex" buys online clothing store KupiVIP

Russia lacks its own strategic raw materials

Ozon Express and Yandex. Shop "will open in the regions on a franchise

Russian Post will switch to a holding format of more than 10 companies

FAS Russia: the release of goods on store shelves will become more transparent

Ministry of Economic Development presented the concept of ecosystem regulation

A new round in working with data: how the OLEP approach helps businesses accelerate their work

The government has adjusted the rules for determining investment projects of the regions for infrastructure support

British OneWeb will appear in Russia in 2021

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It is no secret that after graduating from school, young people living in the Russian regions are eager to move Moscow or St. Petersburg to receive higher education or build a career. They use education as the main means of social mobility, even if there are enough state-funded openings at their local universities. Unfortunately, social mobility almost does not work in the regions. Jobs with a high level of social mobility are mostly in law enforcement: police, the Federal Security Service, tax authorities, the Emergencies Ministry and others. Most of their personnel have special ranks. For instance, one starts as a lieutenant, in two or three years they become first lieutenant, and three more years later they advance to captain. Then, their career growth either slows down or speeds up depending on the position. In addition, many employees have the opportunity to receive free housing. There is no better alternative in terms of social mobility for an average school graduate, especially for those who are not financially established enough. Thus, many young people in the regions cannot afford to buy their own apartment. Most of those who have it either inherited it or their parents helped them with the mortgage.

What can be done to multiply parents’ achievements and increase the family economic, symbolic, cultural and social capitals? Answering this question, French sociologist Pierre Bourdieu said that a person’s social practices depend on the social field, capitals (cultural, symbolic, economic and social) and habitus (socially ingrained habits, skills and dispositions shared by people with similar backgrounds such as social class, — Ed.).

At the moment, many school graduates choose a major that does not fit their skills and wishes, and rely on the family’s resources and their own capabilities. As a result, they end up being mismatched to their jobs. Their discontent with the job directly affects their overall life satisfaction, because work usually takes up most of our daily routine.

In case a chosen career fails to allow people to express themselves, cognitive dissonance, depressions and frustrations occur. A person who has obtained a degree different than what they initially planned, or who works in an organization that is not the one they sought, can neither feel happiness nor help their families feel it; they are unable to bring benefit to the society and the nation.

Even measures taken by employers to boost people’s self-esteem and increase job satisfaction cannot save the situation; those include regular mass media reports about their enterprise or organization, organizing professional skill competitions and youth congresses, issuing books on enterprise dynasty, introducing enterprise veteran worker badges, honor rolls, and many others. Some people either get used to the current reality or seek other ways to express and assert themselves, including through such hobbies as photography, painting or sports, while others resort to alcohol and substances as a way to escape reality, or even commit suicide. 

In single-industry towns, young people have few options for their future career; the situation is drastically aggravated in case there is only one university in the area.

Secondary school graduates in such monotowns who seek to study in universities normally show the following behavioral patters: firstly, leaving to any regional or major federal city depending on intellectual abilities and financial resources; secondly, entering the city’s only university to obtain any higher education degree, with a chosen major and qualification being of no particular importance; thirdly, some part of well-off school graduates may choose, at the urging of their parents, to leave country and receive higher education abroad, which is rare but still occurs.

Among these options, the second one is definitely the most common. Most young people enter university with the sole aim of obtaining education; upon graduation, they will choose something outside of their major and pursue a job that offers high social mobility and salary and is not very labor-intensive.

Behavioral patterns among secondary school graduates in regional capitals are somewhat different yet overall similar. Graduates with high Unified State Exam scores and enough financial resources choose to move to Moscow or St. Petersburg to obtain higher education and, ideally, to stay there for good. In certain instances, receiving education in a major city is seen as an intermediate stage before leaving the country — which is a normal response to the unfolding situation, new opportunities and prospects, rather than an initial plan pursued by a school graduate.

Whenever possible, young people choose the city’s most prestigious university as well as the most prestigious department. A number of applicants, despite their high Unified State Exam scores and immense financial resources, stay in regional capitals. This is common among young women whose parents believe this will help them avoid such problems as alcohol use, sexual promiscuity, and other negative impact. A small number of young people leave the country immediately upon graduating from schools to study in EU countries or the United States.

As evident from the above, school graduates in regional capitals are in a better position than those in single-industry towns. Since the Soviet era, regional centers have boasted plenty of various universities; this allows young people to make their choice according to their preferences.

We currently see that a successful career path pursued by at least one of the parents in their social organization ensures a higher probability of their children choosing their career within the same organization, which is particularly observed in regions.

The nation’s progress requires efforts to equalize levels of the regions’ socio-economic development. To make social mobility efficient, we need to develop operating mechanisms that would allow people to feel happy and competent and help the country avoid skills mismatch.

By Sergei Talanov, PhD (Sociology), Assistance Professor and Senior Research Fellow at the Federal Center of Theoretical and Applied Sociology, Russian Academy of Sciences

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Unilever warns of halting ice cream production due to labeling

Prices for resort real estate rose in Russia

A new plant for the production of edible salt was opened in the Tula region

The production of technical liquid oxygen has begun at the Rosneft plant in Angarsk

A meeting of the Public Council under the FCS of Russia was held

Plastic will be banned in Russia. But not all

The new national standard for soil consolidation will enable the mass application of advanced technologies in construction

Oilseed producers will receive almost 3.5 billion rubles

What will change in the lives of Russians in June

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Prisoners can be used in industries currently manned by foreign workers, Alexander Kalashnikov, head of the Russian Federal Penitentiary Service (FSIN), told the media.

He said Vladimir Putin had earlier discussed with the leaders of Uzbekistan and Tajikistan ways to encourage labor migration into Russia, which is suffering from a shortage of workforce. However, people serving their prison terms can also be used to fix it, RBC quoted Alexander Kalashnikov as saying.

Kalashnikov denied his idea would lead to a new GULAG, because convicts employed in such jobs would be provided with decent working conditions. The prisoners could be accommodated in shared housing facilities or rented apartments, and could work for a salary, which would improve their re-adaptation in society, Kalashnikov said.

Invest Foresight earlier reported that the Kazan prison colony was going to produce ice cream and had already purchased a freezer and other special equipment for the project.

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Oka Shipyard laid down the first ship in Russia that meets high eco-requirements

Why potatoes became the most expensive product in a year

Mars will allow Russians to be the first in the world to try their new product

Zala Aero Group of Companies has delivered unmanned aerial systems to Kazakhstan

A new attempt to revive small aircraft

Maxim Reshetnikov: great potential for business development lies in teaching entrepreneurship

Why banks don't like lending against intellectual property

The Russian plant has released the first domestic disc cultivator-fertilizer

Eating habit: food and grocery delivery market quadrupled

Taxpayers in Russia have registered more than 3.6 million online cash desks

A special fund will be created for the production of organic products

Business Ombudsman proposed to ban the sale of moonshine stills to Russians

Video: X International Veterinary Congress

EdTech is not a privilege, but a must-have

There are more cleaning companies in Moscow

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Russian Post national postal operator will start selling Russian wines this summer. The experiment will begin in Moscow and the Volga region of Mordovia.

If the product enjoys high demand, sales may reach RUR 100 bln ($1.4 bln) by 2025. Orders will be taken online.

France and Austria have similar services, but Russia banned online alcohol distribution in 2007. Certain manufacturers, however, have been bypassing the restriction by offering a click & collect service, where the customer can order a product online, and pay for it and collect it at a store, RBC reports.

Russia’s 25 largest wine producers will join the postal operator’s experiment. The company plans to invest about RUR 5 bln ($68 mio) by the end of 2025 to develop a platform for the project.

Invest Foresight reported in January that Russian Post announced it had discontinued another experiment — selling beer at branch offices. However, the company then added the service was actually quite popular in some regions of Russia.

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Federal Law of May 26, 2021 No. 143-FZ

 "On Amendments to the Federal Law" On State Registration of Legal Entities and Individual Entrepreneurs "and Article 80 of the Fundamentals of the Legislation of the Russian Federation on Notaries"

Simplified deductions for personal income tax: banks have already begun to provide information to the tax office

Rosselkhoznadzor commented on reports of inspections of refrigerated trucks with fish

On the start of accepting applications for inclusion in the list of economic entities engaged in the circulation of pesticides and agrochemicals, in the Federal State Information System of Traceability of Pesticides

Security systems will be introduced in all universities and schools of St. Petersburg

High-speed DDoS attack began to be ordered as a service

The court forbade summer residents to breed livestock without the consent of their neighbors - Rossiyskaya Gazeta

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It is very difficult to prepare analytical reviews of the state of national economies in the post-covid period. Prior to the pandemic, “uncertainty” was more likely to apply to the analysis of theoretical global economic processes. At the moment, it can be used boldly in assessing almost all economic actors at all levels.

Expected results (GDP, investment volume, population income growth) are the main epithet of economic analysis today. Analytical forecasts are more reminiscent of alarming predictions.

Overcoming the pandemic COVID-19 by the main players in the world economy is only expected. But for some reason, this categorically does not apply to the analysis of the modern state of China’s economy. Both the World Bank, the International Monetary Fund, as well as Bloomberg-type analytical agencies have been joyfully trumpeting this year to overcome the crisis in the Celestial Empire. From their point of view, the following image is appropriate: the locomotive of world growth, having stood a little on a covid platform, rushed forward, dragging the entire world economic space behind it.

However, such a hasty admiration for Beijing’s achievements cannot but be surprising. First of all, due to the fact that only facts presented by the government and state institutions are used to compile victorious relations to improve its economy. There is an excessive utopia in assessing Beijing’s real economic achievements.

The triggering situations in the stock market, in the market of innovative investments and the banking sector, the state of the credit system are not taken into account. And their condition is very difficult. It can hardly be called “fantastically successful.” So, what happens in the economy of “a white swan pulling on the growth of the entire world space”? And what is the reality of the myth of his economic recovery?

Let’s start with positive factors. Knowing the peculiarities of Chinese statistics and if we accept the condition that the data are true, the results of the PRC on the post-covid recovery of the national economy are really impressive. The State Statistical Office of the PRC on January 18, 2021 published a report on the main achievements of the national economy. According to the results of 2020, GDP growth amounted to 2.3% (about $15.42 trillion). This, according to Bloomberg, is the world-highest indicator of national economic growth in 2020. The volume of investment in the industrial sector increased by 2.9% compared to 2019.

Investments in high-tech services grew by 9.1%, and investments in high-tech production grew by 11.5%. Nearly 12 million new jobs have been created, with 45% in the high-tech sector. The share of the value added of the tertiary sector of the economy in GDP reached 54.5%, which corresponds to an increase of 0.2% year on year.

In 2020, for the first time in the history of China, social reform was completed, aimed at creating a social insurance system and a pension system. Today, the social insurance system covers almost 95% of the population: 1.36 billion people. This is the largest social protection system for citizens in the world. The pension system covers over 1 billion people and guarantees them monthly payments. For reference: this is a third of the world population covered by the pension system. Social reform began to be prepared back in 2009. Its main goal is to transform the stratagem of behavior of wide segments of the population of China. It is expected that its implementation will allow to reorient it from accumulation towards increased consumption. According to experts, the government intends to spend more than $1.5 trillion annually on social reform. Obviously, Beijing has such money.

The beginning of 2021 was quite optimistic from the point of view of overcoming crisis phenomena. The economic indicators provided by state bodies for the first quarter are a confirmation. So, according to the Ministry of Industry of the PRC, the growth of industrial production in the first two months of 2021 was 3.5% compared to the same period of 2019.

The profit growth of China’s SME in the first two months of 2021 amounted to 72.1%, compared to the same period in 2019. The profit of the largest state-owned corporations by the end of the first quarter showed an increase of 31.1% compared to the pre-crisis period of 2019.

The positive dynamics of economic recovery is also observed in a number of indirect signs. Electricity consumption in the first quarter increased by 21.2%, mainly due to industrial SMEs. The growth of Russian gas exports through the Power of Siberia pipeline increased 3.2 times in annual terms. In March, according to the State Statistical Office, the volume of domestic air transportation almost completely recovered.

Since the beginning of 2021, Chinese companies have set a new historical record for M&A transactions. According to Refinitiv, it amounted to an unprecedented amount of $77.5 billion, which is almost three times their level for the same period in 2020. It is noteworthy that such behavior is not typical of Chinese companies at all. As a rule, the beginning of the year is not the most active period for Chinese M&A.

The main activity of M&A transactions falls on the high-tech sector, medicine and logistics. Activity in the high-tech sector and in medicine is expected. It is based on the launched import substitution strategy aimed at reducing the dependence of the high-tech sector on foreign technologies and combating the consequences of the COVID-19 pandemic. These are certainly uptrend Chinese M&A deals for years to come. In turn, the increase in the number of transactions in the field of logistics is a new trend of national M&A.

An example is the recent takeover of Kerry Logistics by the Chinese courier service SF Holding. The volume of the transaction amounted to $2.3 billion. Equally impressive is the takeover of CJ Rokin, China’s oldest logistics company, by Fountain Vest Partners, a private investment firm headquartered in Hong Kong, for $2.1 billion. The growth of M&A transactions in the field of logistics is likely due to the rapid and large-scale growth in the popularity of e-commerce during the pandemic.

A certain surprise for experts was a noticeable increase in M & A transactions in construction companies. So, the cement producer Xinjiang Tianshan absorbed four regional competitors for 98 billion yuan ($15 billion). It is not very clear why this was so unexpected: since the second quarter of 2020, the development of national infrastructure projects has been recognized by Beijing as one of the main triggers of economic recovery. Already by the third quarter, analysts from CCID Think Tank Electronic Information Institute, a state-owned think tank, and Haitong Securities, a large Chinese securities company, estimated government investment portfolios related to new infrastructure projects at $1.43 trillion.

It is expected that by 2025 the amount will increase to $2.51 trillion. In the development of infrastructure projects, 25 provinces are actively involved, implementing their own local plans. The most impressive is Shanghai’s plan, which sets an overall investment target of $38.7 billion for the next three years. Involuntarily, the question arises:

“Where will the Chinese government take such colossal financial resources?”

Indeed, according to the Ministry of Finance of the PRC, budget revenues in 2020 fell by 3.9%, which is $2.8 billion. Private tax revenues decreased by 2.3% ($1.7 billion). Revenues from value added tax, the main source of budget income, fell by 8.9% (to $6.4 billion), consumption tax – by 4.3% ($3.1 billion). Yes, of course, you can once again turn on the printing press. Neither state financial regulators nor the Central Bank, which do not play an independent role, can prevent this. But printing the yuan infinitely is impossible. It was already a common habit since 2015, and is enough.

The result of the difficult economic situation was an unprecedented increase in the public debt of the PRC. By the end of 2020, it amounted to 58.7% of GDP. The debt of the non-financial sector (industry + state + households) reached the level of 280.3% of GDP, which came close to the same indicator of the United States. But there is also the so-called “hidden debt” — the local debt of the state, hanging on the balance of state financial institutions. Financial regulators estimate its value at $12.9 trillion. At the same time, for some reason, analysts are prophesying China’s economy prosperity, while the US economy according to them faces an imminent death.

Perhaps world leaders of economic growth will again come to China’s aid. First of all, the US economy and a few EC countries, which, despite obvious difficulties, are beginning to overcome crisis phenomena.

The trade balance is traditionally an important factor for the Chinese economy. Export revenues since Deng Xiaoping’s economic reforms began are the cornerstone of growth. For many years, China’s stability relied on exports, and that on large-scale production of first cheap and not very high-quality consumer goods, and then medium-quality products of the high-tech sector. The pandemic COVID-19 damaged the main buyers of Chinese products. Only in the first two months of 2020 China’s external trade fell 11% ($591.9 billion). And here came the rescue for Beijing’s plan to improve the economy. According to the State Statistics Service of the PRC, in the first quarter there is a sharp increase in the volume of foreign trade. It reached an indicator of 41.2%, which corresponds to $834 billion. For the whole of 2019, it amounted to $662 billion.

There is a certain recovery in domestic demand, primarily due to an increase in online trading. In the first quarter alone, it exceeded $1.81 trillion, which is 10.9% more than the same pre-crisis level. At the same time, the situation in the offline trade sector is not so optimistic. The 12% drop that happened in 2020 has not yet been won back. Primarily due to subsidence in sales of the automotive and electronic industries

With cars, perhaps, everything is clear: where will you go to travel with the permanent possibility of another covid lockdown? With the subsidence of sales of electronic gadgets with the all-consuming love of the Chinese population for their purchase, the question is open. Is everything OK with the finances of the population of the “healthy” economy?

Strangely against the same background, a cotton trade war looks like, covering the Chinese domestic market. The boycott of the purchase of textile products by H & M, Converse, Adidas and Calvin Klein due to their refusal to use Xinjiang cotton is unnecessarily supported by the state. Maybe in this way the government is trying to mask another drop in sales in the domestic market.

Nevertheless, the growth of the trade balance had a positive impact on the state of the economy as a whole. As mentioned earlier, in the first quarter, positive changes appeared in the industrial sector of China. There is a significant increase in direct investment inflows, primarily in the high-tech sector. In the first quarter, it amounted to 4%.

Here the US stock market acts as the most important. We can say that there the situation with Chinese companies is a hype. In the first quarter of 2021, investment growth in Chinese companies amounted to 440% compared to 2020. This is almost a record $11 billion. Involuntarily, the question arises:

“Is this a sign of the confidence of American investors in the completion of the technological confrontation between the two countries against the background of Beijing overcoming postcovid economic difficulties?”

Obviously not. The confrontation has not yet been canceled. Joe Biden extended the action of (taken by the Donald Trump administration in May 2020) changes to the Foreign Direct Product Rule (rules for controlling goods manufactured abroad, but having US-made components, technologies or software). And this is a continuation and consolidation of the blow to Chinese production, primarily semiconductor products.

Beijing’s dream of becoming a world center for the development of artificial intelligence in 2030 remains under attack. And the utopian faith of American investors in Beijing’s ability to become first who overcomes difficulties in the economy is not involved at all. Clearly, this is a consequence of the unprecedented pumping of the US economy with new tranches by the Joe Biden government, which began in the new year. “Bidenomics” — this is how analysts determined this style of overcoming economic difficulties; a humiliating definition for the world’s first economy. However, these are the problems of the US leadership, and at first glance they have nothing to do with the topic of our study.

However, is this true? In China, there is a very alarming situation in the stock market, in the market of innovative investments and the banking sector, also with the state of the credit system. By the first quarter of 2021, China’s stock market capitalization reached a 5-year high. Its growth was 318% of GDP. This is a huge amount, 85% of which are private investments. There is a deja vu of the situation in 2008. True, then the growth amounted to “only some” 140% of GDP. In 2008, Beijing was able to fill the overheating of the stock market with non-secured yuan. Now the situation is completely different. In 2021, we are not just facing “overheating”. There has never been a bubble of this magnitude in the history of the world economy.

Where do the funds for feeding this bubble come from? Yes, all from the same source. But, this time, it is the government of Xi Jinping who singles out them. Beijing sent $785 billion to the economy for post-coronavirus recovery. Some of them were supposed to help industrial enterprises and banks, and some — to the previously indicated development of infrastructure facilities. It seems that almost all of them went to warm up the stock market. So, maybe we will help predictor analysts and introduce a new term that characterizes the current state of China’s economy — “Xijinpinoeconomics”?

The story of private loans complicates the situation. In 2020 alone, Chinese banks issued them for $3 trillion, with 20% coming from inclusive financing, including lending to SME. Taking into account previous loans, the total level of lending to the Chinese economy reached $30 trillion. Most of this money leaked to the Chinese stock market. Complicating the situation is the fact that the bulk of the funds belong to unskilled investors and relate to short-term loans. They are not aimed at the development of the real sector of the economy, but at short-term auction speculation, which, due to political correctness, is called “portfolio investments.”

It is this money that fuels the “bubble,” supporting insanely overbought and bloated stock prices of Chinese companies. All sections of the Chinese population are passionate about playing in the stock market. In anticipation of a quick profit, both students and pensioners rushed to investors. If the wave of bankruptcy covers the Chinese economy, it is difficult to imagine the level of social explosion that will cover it.

And bankruptcies have already begun. So, the largest HNA Group Co., Ltd, a conglomerate owned by Hainan Airlines, the world’s fourth-largest airline, announced in February 2021 that it had made an incredible effort to suspend the process. The next blow was the 14% drop in the CSi 300 on the stock market, which coincided with the start of the National People’s Congress. Not a very good moment.

Beijing again poured money into the incident. But if bankruptcy begins to spill constantly, the yuan printing press may not stand it. And the only way to overcome the social explosion remains the launch of sectoral bankruptcy by the government.

What will it choose? A social explosion, the scale of which is hard to imagine, or a loss of face in world reports on the success of China’s economy? Are such prospects a sign of a recovered economy? Probably not quite.

So what about the question of the complete restoration of the Chinese economy? Obviously, this myth is very far from reality. China is, definitely, only at the beginning of the journey. If you return to the image of the locomotive, China still only cares about itself and cannot yet pull the entire global economy, as it was in 2008.

By Marina Ken, Associate Professor, Faculty of Economics, RUDN

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Mishustin sees opportunities for a technological breakthrough in Russia

The Information Technology Development Fund will promote Russian solutions to the world market

The government has allocated more than 10 billion rubles for the purchase of medicines for seriously ill children

The government proposes to limit foreign ecosystems in Russia

The Executive Committee of the FIAC discussed the implementation of measures to improve the working conditions of foreign business in the Russian Federation

Transneft Privolga, JSC confirmed the compliance of management systems with international standards

Media: Russia will develop measures to regulate packaging prices

The excitement in the road construction machinery market

Land inventory started in Russia

The Russian government approves subsidies to businesses for the introduction of artificial intelligence

The first "smart road" for unmanned vehicles will appear in Russia

Rosselkhoznadzor took part in the international exhibition “Meat Industry. Chicken king. Cold industry for agro-industrial complex & VIV "

Draft Decree of the Government of the Russian Federation "On approval of the procedure and conditions for the appointment and payment of a monthly allowance to a woman registered with a medical organization in the early stages of pregnancy, and a monthly allowance for a child aged eight to seventeen, requirements for family composition and a list of types of income, taken into account when calculating the average per capita family income, as well as the list of documents (information) required for the appointment of these benefits, and application forms for their appointment "

FCS is preparing to introduce fully automated customs procedures

Russia and Malaysia discussed priority areas of industrial cooperation

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