Russia’s Policy Toward China: Key Players and the Decision-making Process

Abstract

Russia’s core interest groups vis-à-vis China are as follows: the central civil bureaucracy, Putin, a player in his own right, the army and the intelligence community, managers of state-owned companies, and owners of private companies, as well as the military-industrial complex and the regional governments. Every company is trying to secure a loan in the PRC, to attract Chinese investors to its projects, to find customers, and to develop a working relationship with decision makers in China. Yet, the state of China-related expertise is near-complete illiteracy. Important decisions are made by Putin, but the views and interests of other players may influence policy. Personalization, bureaucratic overlap, rent-seeking behavior of well-connected bosses of SOEs, and lack of professional expertise on China can explain the awkwardness of attempts to exploit China’s growth for national interests.