Chinese Farmers in the Russian Far East and Local Rural Development

Abstract

The Russian Far East (RFE) is still a backward region of Russia. Per capita agricultural output is lower than the national average. Chinese agricultural entrepreneurs are farming in the region. The business environment is challenging for both Chinese and Russians. We analyze possible ways for agriculture to develop in the RFE with Chinese agricultural entrepreneurs as the main agents of development. We discuss the investment environment in the RFE, the role and impact of Chinese agricultural entrepreneurs, their ability to assist in rural development, and the challenges they face. We examine the current state of agriculture in the RFE, the experience of Chinese and Russian farmers, and the impact of Chinese farmers on Russian farmers. Agriculture can improve in the RFE with better communication and better coordination mechanisms among governments and with more training to help businesses understand existing policies and regulations.