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China of Russia’s Assembly
China's economy is growing on booming investments, the better part of which is ensured either by the state or by the state-run corporations. Similar to China, Russia regards state investments as one of the most advantageous methods to speed up economic growth.
When it comes to state investments in fixed capital, the breakthrough here happened not long ago. The amount soared from 1.8 percent of the GDP in 2005 to 2.5 percent in 2006 and is expected to reach 2.7 percent next year.
The state share in fixed capital investments stepped up from 17.4 percent in 2004 to 18.7 percent in 2005. Moreover, the state-run corporations are expected to widen investments as well. Russia’s gas monopoly, Gazprom, will provide $20 billion for this purpose next year vs. $14 billion in 2006 and RAO UES of Russia will increase the amount from $0.8 billion to $3 billion.
The tricky point is that China is drifting away from the state investing methods. Instead, the companies with some interest of foreigners tend to invest more in the country. Another feature of so-called model of China that is favored by Russia is expecting the biggest corporations to form a backbone for the state capitalism.
But the changes can be easily spotted in this field. Indeed, China has a raft of big companies, but their influence and importance are not as profound as in Russia, while the small/mid businesses account for a sizeable portion of Chinese economy.
www.kommersant.com
All the Article in Russian as of Dec. 05, 2006
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