1. Good afternoon ladies and gentlemen,
It is a great honor to be here and to have an opportunity to
Part 1. Entry.
As a president of Russian-American Chamber of Commerce I may see how the world around us
has changed. For the last 5 years our company has provided a great number of consulting
services and project managements. We have invited hundreds of new members and companies
that are willing to make business in new countries, with new partners. The most fascinating fact
is that mostly we work with small and medium size businesses despite a well-known fact that
these are the most week and unsecure types of businesses.
For the last half a year we have seen a strong demand from Russian companies for new
connections and partners around the world, especially Asian markets. Of course, it is a reaction
to the last actions in Western Europe and unpredicted markets. Chief Executives want to
diversify their businesses from the unseen and unfortunate political actions.
And again, the same the most fragile business group acts in the most aggressive way. Our
company explains this fact in a simple way: large companies with a developed business structure
might have predicted political changes. In most cases, those types of companies have already had
their branches in other countries or even other sectors so they are less dependent on sudden
changes in political structure. Lets be honest, in most cases, those large companies are the main
supporters of any political structure changes. So, the main issue nowadays is to find multiple
solutions for any type of company and make those solutions in different parts of the world
acceptable. Diversification of projects will create new demand for employees, new tax benefits
for the government and economic growth.
Problem.
Right now the world is more integrated than ever. We can see exchange in technologies, cultural
mix, production in different countries; language barrier is not a problem for a long time. But we
still have informational, geo-political and economic barriers. All those problems create mutual
suspicions, disbelieve and so close the way for the new partnerships and projects that might have
been mutually beneficial.
Unfortunately, the examples of those problems are obvious. We can see one side information
interpretation, one side view on the problem that is beneficial for a small group of people or for a
particular political power. In this situation, it is obvious why business does not proceed in some
countries and that’s the problem of choice. The problem is unsolvable without mutual help,
mutual actions.
The world has changed. Countries develop; people’s perception changes and we have to react.
There is no bi-polar world anymore. No matter how someone tries to keep this stereotype but it
is not true. The world is not mono-polar any more… the world now exists in new conditions,
when every country is valuable, when each government has to act and to be active in the world
society.
But even in the situation of multi-polar society, we have a problem of scarcity of resources. And
I am not talking about natural resources. Oil, coal, gas – these are the most important energy
resources but lets look at trade routs – the most important before and post production issue. In
the world with hundreds of international companies, when they supply the whole world and
produce in different countries, trade routs are the links between factory and energy resources,
factory and consumer. And in the context of the world trade routs there is a problem of
instability in the regions where those routs pass ( ), high costs (time, price). All those problems
plus others state trade routs scarcity.

2. Part 2
The solution to the problem of scare options should be found with mutual help and in clear
partnership relations.
Not a long time ago the president of Russian Federation has noticed that the new Silk Way may
be one of the ways to boost the investments in both ways. We can see positive ways towards
economic integration between our countries with support from the main political powers.
Combining those facts we may expect the project to be realized in a relatively short terms.
The granted access to to the technologies of the west and products of the east may result in the
new step of relations in the region.
What does that mean? First of all it means new economic growth of the developing countries in
the region. It is not a secret that for the last 5 years the GDP of China has fallen from 5% to less
than 1%. There exists many different theories considering this empirical numbers but most
economists suggest that basically, the old mechanisms that lead the growth do not work today or
have expire through the years. Not expensive labor power cannot provide and hold that growth.
The average wage in China has been rising for 20 years and now it is not as competitive as it was
before. The next barrier that political powers raise in front of international business is high
import costs or simple restrictions of international headquarters. And of course the costs of
transportation. The rising price of oil, increasing of political instability and rising influence of
different radical powers in the major regions these are the main problems that influence the
decision of different firms where to produce. So now we have a possible solution for many of
those arising problems.
The new Silk Way is of course the new way to make business, to attract new firms and provide
solution to the transportation problem. But what does this mean for a regular householder?
Economic freedom or elasticity is another way of saying political stability, market security and
social guaranty. It is obvious how the one direction economy might be isolated and how it might
influence the country. Examples are simple: Iran, Iraq, and North Korea. Even such large
countries with biggest gas reserves as Russia may be restricted in economical development on
the open world market. The open market is a dream for now. It is not clear and unrestricted as
we wish. Thousands of barriers to make business and provide service but now we have political
power; social demand and business need for the new ways of living, making business. None of
wants to be restricted in our choose and we believe that the New Silk Way is an excellent path to
start the new integration process and develop new economic structure secured from western
influence.
Part 3
Right now the New Silk Way is a concept of integration and development in the Asian region.
Thousands of years ago people from different parts of the world without any modern
technologies opened the road of trade, which brought wealth and prosper in both parts of the
world. India, Persia, Europe were dependent on the road and now partly they owe their further
prosperity to that rout.
The ancient Silk Road was established during the Han Dynasty (206 BC – 220 AD) and then for
hundreds of years the government took great interest in the safety of their trade products. The
development of Chinese people, governors, especially, Chinese imperial envoy Zhang Qian
(around 114 BC). At the time of horses and wooden ships the world was more integrated than
now. This is not just a loud statement. Some scientists suggest that the Silk Way has provided a
great amount of trade. If someone would calculate in real money the value of products that
ancient traders used to transfer and sell at the time, he would find out that the value of trade is
very close to the modern time trade volumes. So we can say that modern term “globalization” is
not so new as it might be seen.
Cultural interaction, great amounts of technology, products and of course sources of defense
were the main points of trade. Now the world requires even more tight relation in production and

3. transportation. Now, companies are willing to decide in what part of the world, they want to
produce goods.
From the side of Russian Chamber we can imagine the power that might bring the new Silk
Road: new connection, rising volume of trade and efficiency in resources. One of the world's
longest railways - covers some 11,000 kilometers en route from the Chinese megacity of
Chongqing to Duisburg, a key commercial hub in western Germany. That’s the way to state new
relations and solve transportation problems. The road, which connects two polar countries,
makes it simple to unite people and businesses from both countries. We support such integration
and of course we want to be part of it.
From Soviet times everybody knows the history of BAM - The Baikal–Amur Mainline – the
longest railroad in ex-Soviet Union and the last massive project of the Soviet governors.
Traversing Eastern Siberia and the Russian Far East, the 4,324 km (2,687 mi) long BAM runs
about 610 to 770 km (380 to 480 miles) north of and parallel to the Trans-Siberian railway. The
BAM was built as a strategic alternative route to the Trans-Siberian Railway, especially along
the vulnerable sections close to the border with China. The BAM's costs were estimated at $14
billion. BAM was described as a "the construction project of the century.” The project that
ruined the largest country and it did not become the road of life or even the Russian Silk Way.
The decrease of production, structural problems did not allow the country to use the road in full.
Even now, we cannot say that BAM is a profitable project that might bring wealth to each house
along the BAM route. And this is an opportunity for the New Silk Way.
Russia due to its unique geographical position has always been named as a bridge between
Europe and Asia. But because of its political and economical mistakes, Russia has never been
that bridge in life. Unfortunately we have to mention current political situation and come back to
the problem of choose. Only real life and real problems may show how weak and unpredicted
the world is. That’s why Russia is interested in diversification of its economy and as a result of
its political and social structure. The BAM railroad as a part of the New Silk way should bring
security to the transport system and economic connections. The road is an excellent project to
bring new technologies to the Russian market with benefits to Chinese and European sides. It is
the project when a 3rd party brings value to the product and decrease costs not less than the
producer while brings profit as a consumer. Link that is necessary as customer and producer and
a partner that is as reliable as an old friend. That’s probably the new statement that is very close
to Russian business. We are willing to help in your business because it is our destiny.
Part 4
It might be selfish to say but in that context, Russian American Chamber of Commerce is an
excellent representation of new business model for Russian business mechanisms. We provide
services, we establish new connection and find solutions for companies from different parts of
the world with different mentality but with the only goal to expand production, to make business
more integrated and profitable. Our clients are looking for new ways of business development
and they fin solutions in different countries. That’s what we call “globalization”. Countries and
their governors have to do the same in order to increase the level of living and countries
influence on the world arena.
Right now the Chamber of Commerce looks forward to establish the branch in China in order to
provide the same bunch of services that we do on the other side of the Pacific Ocean. We have a
view that two countries have the only way to increase partnership integration. But there is a
problem in understanding of some basic business rules and concepts. Our company is ready to
solve and be an agent on the Russian-Chinese way of integration.
As a president of the company I have a filling that our countries have lost too much time. We
could have developed a unique business area with strong business culture absolutely compared
to the American-Europe markets. Unfortunately, the market now belongs to the companies from
those regions and they state the rules of the game in political and business world but we should

4. not be dependent. Otherwise, by increasing the connection with that market and those players,
we could increase value of our own product. For example, Russian car market is one of the
largest in Europe and Asia while the home producers are week and undeveloped, they were far
behind the German car makers even 20 years ago but now we can say that the abyss between our
countries has narrowed. Yes, the German producers are still far ahead but now many of them
produce cars in Russia so they bring technology, they bring materials and engineers. It means
that someway they develop Russian car industry and create thousands of working places. This is
the example of positive exchange in technologies.
So our firm stands for close relations between Chinese and Russian businesses by staying in tight
integration with European and American partners. The experienced partners are good teachers
(сенсеи Jiàoshī) for our own businesses.
Part 5
But what does business society need? The most typical answer is the simplest one. Any company
requires a long time perspectives and guaranties. There is no difference in the type of business
until the owners are ready to invest during the long period of time.
In the situation of international business, the new company would require supportive
mechanisms during the first period of establishment. Considering the Chamber’s experience, I
would say that this role might be provided by private company but in a close connection to the
governors and government agencies.
This structure might have additional positive outlines.
 The new business does not have to be involved in a close relation with governors. If it is
not the solution to the corruption problem but it is definitely decrease the possibility for
companies to give the bribe and for governors to take. By eliminating the one-by-one
connection we decrease the possibility.
 By entering the 3rd party with a strong experience in the field of international business,
investor relations, we create a non-government professional agency in investment sector
to attract of new investments.
 Also, those agencies might increase the add value to the product, would be a place for
hundreds of workers and a reliable partner as like for the government as for the business
society.
 By entering the investment agencies the government would shift a ton of work to
professionals and would stay in the project as a guarantor of stability and as a control tool
on the investment agencies. It is much easier to control a small number of firms than each
project or each international business that enters the market.
Conclusion
In the beginning of my speech I mentioned that the most active companies that require help and
assistance are mostly small/medium one.
Then comes the problem of trade routs in a new open world where the New Silk Rout should be
the solution.
From that part I used to say that Russia is fully interested in a close relations with China and
ready to help, ready to be a link between East and West.
In that situation, Russian Chamber is looking forward for new business opportunity in China and
ready to be a 3rd party for the small/medium size businesses.
Lately I have shown why that kind of agency is the efficient way of making business and that it
might be useful for both sides: business and government (investor and society).

5. But in the end I want to mention once again the main idea that the Chamber states for. The idea
is that two neighbor countries have lost a lot of time due to the political question. But now it is
time to cooperate, establish new business connections, new investment projects, let the ordinary
people to cooperate and earn money, to develop new Russian – Chinese relations.