This is my student’s blog.
In its latest annual report IMF said that China will have bigger GDP than USA during 2014 calendar year. China’s GDP is still smaller than USA when counted in raw dollars, but it’s bigger, if we account it for purchasing power parity. PPP is becoming a standard in comparing country’s GDP.
A lot of analysis say that China will maintain growth in next years which is crucial for Russia
In may Gazprom and CNPC had singed a 30-years gas supply contract from Russia to China which is worth 400bln USD. China will pay 350 USD with annually delivery of 38bln cubic meters of gas.
If Russia strengthen it’s cooperation with China and other Asian’s markets(which is very possible), gas prize for Eastern Europe countries will be rising and Russia will be more independent with no response from second side.