Economy

Sino-Russia trade set to rise

By Zhou Siyu (China Daily)
Updated: 2011-04-13 13:45

Workers at a machinery equipment plant in Nantong, Jiangsu province. China is the world's largest exporter and second-largest importer of machinery and electronic products. [Photo / China Daily]

Bilateral trade in machinery and electronics may touch $30b, says China Chamber of Commerce

BEIJING - Sino-Russian trade in machinery and electronic products is expected to reach $30 billion by 2015, said Zhang Yujing, president of China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), on Tuesday.

He also said the total bilateral trade volume is expected to stand at $100 billion by 2015.

China is the world's largest exporter and the second-largest importer of machinery and electronic products. Trade in these products constitutes the major part of bilateral trade between the two countries.

In 2010, China's exports of electronic products to Russia jumped by 85.1 percent year-on-year to $13.5 billion, accounting for 45.6 percent of the country's total exports to Russia.

Related readings: Russia proudly marks 50 years since Gagarin orbit  Radiation detected in imported Japanese cars to Russia   Russia targets bigger role for space programme World court ends Georgia's case against Russia

Zhang also said Russia's resource-centered economy is benefiting from increased demand and the rise in the prices of commodities such as crude oil, natural gas and coal, following the economic recovery from the global financial crisis.

Propelled by the price hikes of natural resources, Russian companies will expand their production capability and seek overseas investments, Zhang said.

"This will create great opportunities for further increases in bilateral trade and cooperation (in machinery and electronic products)," he said.

During the first two months of this year, bilateral trade between the two countries in machinery and electronic products surged by 56.7 percent year-on-year to $2.38 billion, according to the General Administration of Customs.

Meanwhile, China's exports of electronics and machinery to Russia amounted to $2.33 billion, compared with imports of $50 million, official figures showed.

"Russia has advanced technologies in producing equipment for industries such as aviation and space and nuclear power," Zhang said.

"By introducing Russia's competitive products into China's market, we expect the imports to increase," he added.

Chen Fengying, director of the World Economy Institute of China's Institute of Contemporary International Relations, said the goal of $30 billion by 2015 is not easy to reach.

"China has achieved rapid progress during the last decade in developing its manufacturing technologies, and Russia does not have many advantages," she said.

"It may take some time for further increases in the bilateral trade (in machinery and electronic products)," she added.

Currently, China's exports to Russia mainly consist of domestic electrical appliances, automobile, engineering equipment, according to CCCME.

China emerged as the largest exporter and the sixth-largest market for Russia in 2010.

During the same year, Sino-Russian trade surged by 49.6 percent year-on-year to $57.1 billion. China's imports increased by 19.1 percent from last year to $19.3 billion while its exports jumped by 72.1 percent year-on-year to $37.8 billion, according to data from the Federal Customs Service of Russia.