Putin Visit to China Opens New Phase in Two-Power Economic Cooperation

A senior U.S. intelligence source yesterday underscored the importance of the recent Putin visit to Vladivostok and China, where a number of significant bilateral economic deals were signed (a detailed report from Russian news and government sources on this trip will appear tomorrow). More significant than any of the specific agreements was the decision, worked out between Prime Minister Putin and President Medvedev prior to the trip, to open up Russia to Chinese investments on a totally new basis. For the first time, according to the source, the Russians will allow the Chinese to have a direct equity stake, in some cases ownership, of companies in Russia. This goes way beyond long-term contracts to purchase energy and raw materials, which have been the character of Russian-Chinese deals in the past.

Lyndon LaRouche commented that this is not only an important bilateral development. It means that China's U.S. Dollar reserves are now worth something real, because they are being invested in infrastructure and other physical production. LaRouche added that if the new Russia-China economic cooperation, on this new scale, goes forward, it creates the opportunity for the United States to join in the arrangements, advancing the Four Powers prospects. LaRouche noted his own recent speech during the economic panel of the Rhodes conference, where he emphasized the development of Northeast Russia, with its vast raw materials wealth. These kinds of projects will naturally draw immediate support from Japan and South Korea.