Top Biz News

Bilateral trade with Russia on fast track

By Jiang Wei (China Daily)
Updated: 2007-03-16 09:39

"If these products (that entered the Russian market without legal clearance) are not qualified, they will become a potential danger to consumers and will hurt the reputation of Chinese exporters as well," she said.

Governments from both sides have set up a panel to look into the issue.

In addition, Yu predicted Russia's accession to the World Trade Organization would help strengthen its economic ties with China and Russia, as Russia is expected to complete negotiations for the accession this year.

He said Russia would further facilitate the economic and trade exchanges between the two countries after its entry to the WTO.

Increasing investment

Compared to the fast-growing trade figures, growth in bilateral investment has been slow in recent years.

According to statistics from the commerce ministry, China had invested a total of $1 billion in over 700 projects in Russia by the end of last year. Russia also invested $70 million in China. Those projects involved energy and resources exploitation, timber processing, home appliance making, telecommunications and building materials.

Liu with the research institute suggested Chinese enterprises try the processing trade in Russia.

Most Chinese exporters of machinery and electronics currently sell to Russia through local distributors.

"Our experience shows that bilateral investment ensures steady growth in the machinery and electronics trade," Liu said. "Products from joint ventures could either be sold in both countries or exported."

The Russian government expected Chinese businesses to invest in Russia to boost local manufacturing.

China also encourages investment in Russia. It expected China's accumulated investment in Russia to total $12 billion in 2020.

China will set up cooperation areas in Russia to help enterprises invest in the country.