Russian Far East to grow China trade

Key Russian Far East region announces big plans for China trade

CHINA RUSSIA COOPERATION

Russia’s Far East Primorsky region has announced it is seeking partners in China for an ambitious development project that would turn the city of Vladivostok into a major center of the Asia-Pacific region.

At the same time, effective from 1 June 2023, China approved the Russian port of Vladivostok in Russia’s Far East as a cross-border transit port for “domestic trade shipments” in Northeast China’s Jilin Province, providing it with more convenient access to sea port service.

With the opening of Vladivostok port, China and Russia can engage in more cooperation in port construction and logistics, further enhancing the economic vitality of northeastern China and development in the Russian Far East

VLADIVOSTOK MASTERPLAN

A delegation from the Primorsky Region is attending the Harbin International Economic and Trade Fair in North East China, which kicked off on 15 June 2023, and is expecting to clinch new deals in China and find investors, the head of the region’s Trade and Industrial Council, Boris Stupnitsky, told the TASS news agency.

“We expect an increase in mutual trade turnover and are looking for deeper economic ties with Chinese partners in agriculture, transport and logistics. We also want to attract Chinese investment to Primorsky Region to boost its development,” the official said.

Russia has embarked on an ambitious project aimed at turning the Far Eastern city of Vladivostok and the surrounding area into a major center in the Asia-Pacific Region by 2040, and into a global center by 2050. The project, known as Vladivostok Masterplan, entails a massive redevelopment of roads and public transport and the construction of new social and economic infrastructure, which are intended to give a new look to the city and region.

The exchange of goods between Primorsky Region and China in 2022 accounted for over 57% of the region’s total foreign trade turnover. China’s share in exports to the region was 47% last year, while imports amounted to 62%. Such growth was largely attributable to cooperation between Primorsky Region and the Chinese province of Heilongjiang.

Authorities in the Russian region said that last year mutual trade with Heilongjiang was worth $7.5 billion and announced a plan to boost the figure to $10 billion by 2024.

RUSSIA-CHINA TRADE BOOMING

Beijing’s trade with Moscow has continued to grow, with both exports and imports rising significantly in March in annual terms, Chinese customs data shows.

Chinese exports to Russia soared by 136% year-on-year, while imports from the country jumped by 40.5%.

Overall exports of Chinese cars, steel, clothing and plastics to Russia and other countries rose strongly in March. Statistics also showed that Beijing’s coal purchases from abroad more than doubled last month, hitting a three-year high. Oil imports increased by 22.5%, iron ore by 14.8%, and soybeans by 7.9%.

China’s trade with Russia hit a record high in 2022, growing by nearly a third amid Western sanctions against Moscow. Bilateral trade is on track to reach $200 billion this year, according to first quarter results published earlier this month.

Sources

  • RT News, 16 June 2023
  • BRICS Information Portal, 15 June 2023 & 3 May 2023.