Chen Xiaochun

654789759@qq.com

THE CEC BLACKARK International Smart Hardware Innovation Center was unveiled in Huaqiangbei on Oct. 24. At the same time, China Electronics Shenzhen Co., Da Vinci Capital Management Ltd., the leading independent investment manager in Russia, and Russia Venture Capital (the Russian Sovereign Wealth Fund) signed a memorandum of understanding to establish the 600-million-yuan (US$85.45 million) China-Russia Innovation Funds.

“Since Russia and China have already reached an understanding on the matter of integration of the Eurasian Economic Union and the Belt and Road Initiative, the establishment of the China-Russia Innovation Funds perfectly fits into the strategy of the Chinese Government,” said Aleksandr Smirnov, deputy consul general of the Russian Federation in Guangzhou.

Da Vinci Capital brought a total of 12 high-quality projects from Russia to CEC BLACKARK International Smart Hardware Innovation Center to build up the Russian Cluster. The project will give impetus to industrial transformation, the upgrading of Huaqiangbei and the creation of a world-class smart hardware innovation representative zone, which could become a model of innovative cooperation for the Belt and Road Initiative.

“The relationship between China and Russia is developing and improving daily. I think there is good potential for Chinese companies to open the Russian market because there are not many Chinese companies present in Russia and some East European markets. The same is true with the Russian side. Some Russian companies are still not present in China because they focus more on Eastern European and U.S. markets,” Oleg Konev, managing partner of Da Vinci Capital, told the Shenzhen Daily.

Huang Wei, executive vice head of the Futian District Government, told Konev that the China-Russian Innovation Funds are more than welcome, adding that Futian, and especially Huaqiangbei, is the best place for the funds as well as smart hardware projects in general, as it is home to the largest electronics market in the world.

The innovation funds aim at helping Russian companies set up joint ventures in China, and helping Chinese companies with global expansion.

Konev said that Russia is good at software while China, especially Shenzhen, is very famous for hardware exports.

“Exports of software from Russia in the last year reached US$10 billion. But now it’s a new time which needs smart hardware. I think the combination of hardware and software is a very strong combination. Russia can bring strong IT solutions to China,” said Konev.

“Mr. Huang Wei is very happy to see Da Vinci Capital landing in Futian. The government will give us some inexpensive or free office space, which will help us save on some costs, and is actively helping us find partners. They have opened the door for us and endorse us,” said Law Yee Ping, managing director of Hong Kong Innovation Services Ltd., which is the placement agent of the China-Russia Innovation Funds and the integrator of the Russian Cluster.