This trade does not threaten China, on the contrary - it is bad for Russia because their money goes out of the country for Chinese made goods.
Now what I am talking about
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Russia, however, is wary of Chinese (or other) migrants pouring into its sparsely populated Far East. Trutnev noted that his plan was designed to prevent the free land from being sold to foreign companies and individuals. Moscow Times called this ?an important consideration? as ?Chinese, Japanese, and South Korean companies are gradually making inroads? into Russia?s Far East.
Russia?s Federal Migration Service is especially wary of an influx of Chinese migrants across the Russia-China border. It has warned that Chinese could become the largest ethnic group in Russia?s Far East by the 2020s or 2030s; last summer a border official said that 1.5 million Chinese illegally entered Russia?s Far East from January 2013 to June 2014. In part, then, the new ?homestead act? may be designed to prevent Chinese dominance in the region, as Moscow hopes to encourage new migration into the area by Russian citizens.
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China Eyes Land Giveaway Program in Russiaâ??s Far East | The Diplomat