With China’s economy slowing down, the government is trying to find ways to spur economic growth. The Chinese Foreign Ministry Wang Yi proposed creating a trilateral economic corridor between China, Russia, and Mongolia, connected by a high speed train. This trade agreement is reminiscent of the famous Great Silk Road.
The high speed train would cost about $5.2 billion dollars and it would be the first high
speed train in Russia. It would connect Moscow and Beijing in just 48 hours. It would serve as an economic benefit not just for the three countries involved, but for the entire Eurasia economy. The Eurasian Economic Union (EEU) founded by Russia in January of this year, includes Russia, Armenia, Belarus, and Kazakhstan. Its goal is to promote trade within the region and exploit comparative advantages of each of the countries. With the proposed Silk Road connecting Russia and China, it would not be surprising to see China join the EEU.
China’s close political ties with Russia are exemplary of China’s neutral political policy. Although most of the western world is shunning Russia for their violence in Ukraine and Crimea, China is more concerned about economic issues.