Ukraine must do its best to woo Chinese capital
Serhiy Arbuzov says cooperation in sectors from agriculture to aviation would also benefit China
The Ukrainian economy is in deep crisis. At the end of 2014, gross domestic product had dropped by 7.5 per cent, and inflation had reached over 20 per cent. The average salary is now around US$150 per month; the average pension less than US$100. The state has had to significantly reduce the funding of social programmes, medicine and health care.
And things are only getting worse. This year, the international rating agency Fitch expects the economy to fall by 5 per cent and inflation to hit 26 per cent.
In such circumstances, one of the most pressing problems concerns investment. Due to political instability, currency devaluation and the war, in 2014, Ukraine's foreign investment portfolio declined by US $13.6 billion. Without the infusion of funds into the real sector and in the modernisation of key assets, it is impossible to talk about stabilisation of the current dire situation, let alone economic growth.
I believe the Ukrainian government understands the problem. However, I see no desire to find a solution. Ukraine has recently received a loan from the International Monetary Fund that is, without doubt, a lifeline. But these funds will be used primarily to pay foreign debt. Ukraine's economy needs real investments in enterprises, in real production.
Despite claims of friendship, Europe is not in a hurry to invest. Russia intended to do so in 2013, but will no longer, for political reasons. But this does not mean that the government has no way out.
China, the world's largest economy by GDP at purchasing power parity, has the ability to invest in our country. And the Ukrainian government must do everything possible to get the Chinese state and Chinese business to come to Ukraine.