Ralph Winnie Jr., Contributing Editor's Article "Closer to China" in the Washington Post

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During President Barack Obama’s recent trip to the People’s Republic of China, he strongly
urged China to strengthen its currency as tensions escalate between the United States and
China over exchange rates. While both President Hu Jintao and President Obama agreed to
work together on pressing international issues, Obama has now joined many world leaders
calling on China to allow its currency, the renminbi, to appreciate. Obama contends that the
currencyis undervalued and damages U.S. exports. The Russian Federation, however, has been
quiet on this matter.

The People’s Republic of China has become a major economic player in the world community.
As China continues to grow, Russia views the situation as more of an opportunity rather than a
threat. China has been successful in actively promoting joint venture partnerships with profitable
Western companies. Currently, Russia lacks the ability to effectively integrate these new
technologies into the fabric of its economy.

The Russian government recognizes that the key to developing a robust and stable economy is
to push strengthening relations with China. Russia is eager to understand how China has been
able to rapidly absorb and utilize Western know-how and entrepreneurial business success;
itseeks to emulate China’s relatively open economy. Privatized Chinese companies can now
work together with Western companies to develop, refine and control capitalism. By contrast,
Russia’s economy has been characterized as unstable, unmanageable and unworkable. This is
due to the interrelation of organized crime with Russian political leaders and nationalization of
successful foreign businesses.

Many members of the Russian politburo have strong ties with oil and natural gas companies
seeking to increase and expand their presence in Asia. Many people associated with these
firms are former high-ranking Russian military officers, including ex-KGB, who were among the
most professionally trained in the former U.S.S.R. These people seek out profitable joint
venture business opportunities, thereby hoping to prevent the United States from dominating
global affairs. According to recent studies, many Russians (47 percent) have responded
favorably to increasing trade contacts and ties with China. Russians view the rise of China as
the result of a more multipolar world. They believe that the United States must learn to coexist
with other rising powers, including China and Russia.

While the Russian government wants to protect and defend Russia’s sovereignty, they
recognize that the Federation may be better protected through closer economic ties with China
rather than the West. Many Russians believe that the Chinese respect a country’s internal
affairs and don’t seek to enforce the ideals of a “good society” on other sovereign nations.
Moreover, President Hu Jintao echoed the Russian sentiment toward U.S. policy when, during
his recent meeting with President Obama in Beijing, Hu mentioned, “We will continue to act in
a spirit of equality, mutual respect and noninterference in each other’s internal affairs.”
It has been suggested that Russia views a close economic, political and strategic relationship
with China as a viable, ongoing relationship that could mature into a political, economic or
military union similar to the North Atlantic Treaty Organization or the now-defunct Warsaw Pact.
In this new union, China, Iran, Russia, Venezuela and many other non-Western nations would
emerge as a powerful bloc in opposition to the imposition by the West of Western-style
capitalism and democracy. This system is still viewed as chaotic, unstable and uncontrollable
by the Russian government and its people, who still vividly remember the collapse of Russia
and its tumultuous transition to a democratic system.

The prospect of China providing a security buffer against Russia has been the rationale for
mistrust and suspicion between China and Russia. However, the leadership in Russia wants to
strengthen Russia’s ability to choose its own partners in an increasingly globalized society. For
the past twenty years, Russia has always sought recognition from the West as a leading
superpower. However, strong criticism of Russia by presidents George W. Bush and Bill Clinton
created a perception that the United States is an arrogant hegemonist. Unlike China, the
prevailing view among the Russian government is that the United States is seeking domination,
manipulation and isolation of Russia.

The closer relationship being established between China and Russia should encourage the
United States to alter its mindset toward Russia. The United States must support the
emergence of a rapidly growing Russian middle class. Encouraging Russia to participate as a
responsible stakeholder in the global community will help Russia choose and manage its
economic and political relationships wisely.

Ralph E. Winnie, Jr., is the Director of the Eurasian Business Coalition’s China Program.