MAGNESIUM INDUSTRY OF RUSSIA AND CHINA: RETROSPECTIVE ANALYSIS AND MANAGEMENT STRATEGY

Abstract

Purpose. Magnesium industry is one of the basic industries of the national economy. With this in mind, China has managed to become the undisputed world leader in the production of magnesium metal over the 20 years, and to become a global technology leader in the industry for 10 years, overtaking the United States, Japan and other countries. The article solves two tasks identifies the key characteristics of the State policy of China, which allowed that country to achieve such results, and shows that Russia still has a chance to impose a struggle in some areas of magnesium application. Methodology and methods. The authors analyzed historical trends in the magnesium industry in the world since 1940-s, identified the basic measures of economic policies of China since 1980, defined the current situation in Russia in the field of magnesium production, considered the scientific and technological activity in the magnesium industry in Russia and China, including the scientometrical analysis. Results. On the basis of the analysis the authors highlighted the key success factors for the development of Chinese magnesium industry, which allowed the country to become a monopolist on the world market. In this situation Russia has become a “local” player, fully ensuring the demand in the domestic economy on magnesium, as well as partially the Union countries of EurAsEC countries. China's strategy is based on initial low-balling, followed by an increase of a market share, as well as the gradual development of scientific research and development to improve the quality of products. In addition, the authors formulated the recommendations for Russia, which are to implement the three priority steps that will increase the scientific and technological potential of the industry and its competitiveness. Scientific novelty. The scientific novelty of this work is to carry out a comprehensive economic analysis of magnesium industry formation in China on the basis of a review of the key factors in the development of industries (the availability of basic infrastructure, natural resources, technologies, access to markets for finished products both internal and external). In addition, a comparative scientometrical analysis pioneered the development of the magnesium industry of Russia and China, which is based on the examination of the patent field of the countries, highlighted the types of beneficiary defined technological dynamics of the development of new technologies in the countries under consideration. The authors shaped practical recommendations to Russia in the field of economic policy in the magnesium industry, taking into account the trends of development of the main competitor Chinese magnesium companies.