Recently, another top 500 of the world's largest companies by the American magazine Fortune was released. In this ranking by representation, Chinese corporations for the first time in history overtook American companies and took 129 places in the rating against 121 places. At the same time, Taikang Insurance Group, the most modest Chinese company in this rating, has revenues of about $ 25 billion, and the number of employees exceeds 57 thousand people. This provides an excellent opportunity to analyze which of the largest Chinese companies do business with Russia and have representative offices in Russia.
Top 1
Sinopec is a Chinese petrochemical corporation with revenue of over $ 414 billion topped the ranking of Chinese companies. Sinopec has been operating on the Russian market for a long time and closed the first deal to acquire 99.49% of Udmurtneft in 2006, then ceded a controlling stake in Rosneft. This strategic partnership allowed the company to work effectively in Russia. At the moment, the company’s assets include participation in the Sakhalin-3 project together with Rosneft, a blocking stake in the Krasnoyarsk synthetic rubber plant, 10% in Sibur JSC, in partnership with which the company plans to participate in the Amurskiy gas-chemical project.
Top 2
CNPC - the Chinese state oil and gas corporation has also long been a serious player in the Russian market. CNPC is a major crude oil trader and is actively investing in Russian projects. The first major project was implemented in 2009 in partnership with Rosneft, when CNPC gave a loan to Russian partners in the amount of $ 25 billion secured by future oil supplies. The deal allowed the construction of the first oil pipeline to China and served as a substantial growth in Russian-Chinese trade. Together with Rosneft, CNPC is implementing the Tianjin Oil Refinery project in China, whose capacity is 16 million tons of crude oil per year, and the depth of oil refining reaches 95%. However, the key CNPC project was implemented jointly with NOVATEK - this is Yamal LNG and the ongoing Arctic LNG-2. These transactions allowed the company to receive exclusive sales and distribution of LNG in China from these fields, and the Russian company received investments amounting to about $ 20 billion and thousands of new jobs.
Top 3
China State Construction Engineering has also been present on the Russian market for a long time. The largest Chinese construction contractor is implementing investment projects in Russia - these include Greenwood business-park and Huamin. But the participation of Chinese builders in these projects is unlikely to surprise anyone, much more curious is the participation of CSCEC as one of the contractors of Moscow City and a number of other EPC contracts in Russia. At the moment, the company is completing the implementation of the Huamin project and is open to new proposals in EPC format.
Top 4
ICBC is the largest bank in the world with revenues of about $ 169 billion and assets of over $ 4 trillion. It is actively works in Russia. The Russian subsidiary of the bank takes 87th place in the national rating for assets with an indicator of over 57 billion rubles. The performance of affiliates in Russia perfectly characterizes the participation of Chinese business in our country, since Chinese banks traditionally working with their own. ICBC Moscow office prefers large corporate clients and offers them syndicated lending, issuing panda bonds and other banking opportunities. The bank has loans to the Huadan-Tyaninskaya CHPP in Yaroslav, implemented in partnership with TGK-2. The bank financed about 20 billion rubles. The participation of ICBC allowed us to create a power station with a capacity of over 450 MW and solve the problem of energy shortages in the Yaroslavl region. ICBC also has an investment unit and is ready to consider high-quality Russian investment projects.
Top 5
China Construction Bank with revenues in excess of $ 151 billion and assets in excess of $ 3.3 trillion also operates in Russia. The bank received a license from the Central Bank in 2016 and during this time its assets exceeded 21 billion rubles, which allowed CCB to take 137th place in the national banking rating. CCB prefers to cooperate with large Russian borrowers, for example, it participated in a banking syndicate to attract $ 725 million and a of 650 million euro for pre-export lending to Uralkali, a company with a history on the Chinese track.
Top 6
Agricultural Bank of China earned more than $ 130 billion in 2018, and its assets are estimated at almost $ 3.3 trillion. The Russian daughter began work in early 2015, and during that time, Chinaselkhozbank was able to bring assets to 12 billion rubles, which allows it to occupy 187th place in the rating of Russian banks. The bank specializes in trade finance, pre-export lending, syndicated lending and the development of payments in national currencies. Of the well-known Russian customers of ABC - Uralkali, who also attracted pre-export financing from the Agricultural Bank of China.
Top 7
Bank of China closes the top 4 Chinese banks with revenues of $ 127.7 billion and assets of about $ 3.1 trillion. The Bank opened a local subsidiary in 1993. For 26 years in Russia, the bank's assets reached 44 billion rubles, which allowed the Bank of China to take 102 place in the rating of Russian banks. Bank of China is the most democratic of the top 4 Chinese banks and is open to work not only with the largest Russian corporations, but also with small and medium-sized enterprises. The Bank's syndicated lending clients include the largest Russian steelmakers, Rusal and many other companies. In addition, the Bank of China offers trade finance and is ready to lend to projects that have export potential to China.
Top 8
Last year, China Railway Construction earned $ 110 billion, some of which are from Russian projects, including the construction of the Moscow Metro's Big Ring. The CRCC is building the "Vernadsky Prospekt", "Aminyevskoye Shosse" and "Michurinsky Prospekt" stations for 23 billion rubles. Other prospective CRCC projects in Russia include the Moscow-Kazan high-speed highway, which is scheduled to begin construction in 2020. The project will become a part of the Silk Road and will accelerate Russian-Chinese railway communication.
Top 9
China Mobile, a Chinese telecommunications giant, earned $ 112 billion over the past year, however, the company only came to Russia in 2017. The Russian subsidiary was registered with an authorized capital of 500 million rubles. At the moment the company is just beginning an active work in the Russian market, therefore by the end of 2018, the company's revenue amounted to 3.4 million rubles. China Mobile specializes in IT-solutions for Russian companies that plan to enter China - system integration, cloud solutions as well as services for subsidiaries of other Chinese companies. China Mobile considers the business with Russian telecommunication operators to be an important area of work.
Top 10
Huawei earned more than $ 109 billion, of which Russia accounted for more than 132.3 billion rubles. In Russia, Huawei sells Huawei and Honor smartphones, as well as supplies telecommunications equipment for mobile operators, large financial institutions and the public sector. Over the past 2 years, it has been able to become the market leader in smartphone sales with a share of 20%, which is equivalent to 7.5 million phones. However, Russia for Huawei is not only a sales market. 2020 and 2021 are declared
years of scientific and technical cooperation, and the Chinese technology giant can actively participate in bilateral innovation projects, including as a venture investor.
The scale of Chinese companies is amazing, but that also are the prospects that open up for Russian business in cooperation with them.
RAUIE members regularly take part in
business-events at which they can communicate with the executives of the largest Chinese corporations and find opportunities for cooperation.
