Russia-China Trade: First Results of the Year
06.03.2017 142 views
In January the Russia-China bilateral trade turnover reached USD 6.55 bln, 34% more compared to a year earlier, according to the Main Customs Administration of the P.R.China.
While meaning a start of new success, these figures also imply that such situation will remain unchanged throughout the year. In January, the Russian export to China reached $3.14 bln, China to Russia – $3.41 bln. China continues to be a major commercial and economic partner for Russia. Wаng Kai Xuan, deputy director of Europe and Central Asia Department, Ministry of Commerce, said that merchandise turnover between Russia and China reached $69.53 bln in 2016.
At $8 bln in 2000, the trade volumes have grown to $95.3 bln by 2014. Over the recent years, due to the global economy slackening and drop in oil prices the trade performance declined as well.
In an interview with Russian journalists China’s ambassador to the Russian Federation Li Hui said that the commercial partnership between Russia and China was at a high level. Russia’s ambassador to People Republic of China Andrey Denisov mentioned, in turn, that the relations between the two countries have demonstrated a significant progress recently. Both ambassadors believe the countries are to hit the target of $220 trln turnover by 2020. According to the Ministry of Commerce, Russia-China import and export of electrical products demonstrated good statistics in 2016: the export of the products to the Russian Federation exceeded 30%, and together with high technology products the share of Chinese hardware in the Russian market reached 60%. Imports of equipment from Russia account for 35%.
China has become a major buyer of Russian food-stuff. Last year the country imported agricultural products from Russia for over $1.8 trln. Wang Kai Xuan believes China will not be able import more agricultural products, though at the same time the turnover will not decline. The increase of turnover has also been driven by the rapid growth of eCommerce. Russian consumers are ardent fans of Chinese “Black Friday”. In 2015, the Internet sales volumes approached $3 trln. Chinese eCommerce platforms account for 80% of purchases in the Russian market. Alibaba Group, Jingdong Mall and other eCommerce giants actively explore their powers in the Russian territory; they improve the quality of service; Russian banks and technological enterprises take the payment segment of eCommerce to the next level. Li Hui believes Russia and China have certain advantages in the energy, financial and technological segments. Both countries are seeking to optimize the trade mechanism, they join their efforts to contribute to the commerce liberalization and to lower the cost of trading operations. They develop new merchandising channels such as eCommerce, introduce new turnover growth factors.
On February 15, the Chinese Academy of Social Sciences published a report “On the Competitiveness of China Production” highlighting high complementarity of trade, low level of competition, close contacts with Russia, and other advantages.
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