Visiting Vice Premier Zeng Peiyan on Thursday called for expanding investment ties and exploring new modes of investment cooperation between China and Russia. 

Addressing representatives from both countries' business community after attending the second China-Russia conference on investment promotion earlier in the day in St. Petersburg, Zeng said investment ties between the two countries need to be expanded.

China encourages home companies to invest in Russia and will work to ensure total Chinese investment in Russia hits US$12 billion by 2020, Zeng said. China also welcomes Russian companies to venture into Chinese markets, he added.

Both sides should press ahead with large joint projects and make substantial strides on joint work in the energy sector, Zeng said. Cooperation in aerospace, aviation, new materials, chemistry, biology, communications and information technology is also expected to yield tangible results, he added.

Zeng urged new modes of cooperation to be introduced into the bilateral investment ties. Investment needs to be combined with manufacturing, project contracting and labor outsourcing, and it may take the forms of joint ventures, shareholding, acquisitions and mergers, he said.

Zeng said the mechanism and environment for investment require improvement. He hoped the investment conference will serve as a platform for boosting bilateral investment cooperation and help establish a long-term, stable partnership between Chinese and Russian enterprises.

Zeng said both sides need to map out mid- and long-term blueprints for investment cooperation and help clear problems for investing companies.

(Xinhua News Agency June 10, 2005)