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Honeymoon between Heilongjiang & Russia
Published on: 2017-08-21
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Russia has been facing increased isolation from the West, which has slapped harsh economic sanctions on the country, but it has found an eager recipient for its exports in Heilongjiang Province.
 

Traders and consumers in Heilongjiang said they have seen what they describe as a "honeymoon" period of robust Sino-Russian trade recently, partly because officials there have opened up the local market to Russian goods and political ties between China and Russia have been growing stronger. However, vicious competition as well as a trade deficit will continue to exist, they noted.
 

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The bilateral trade boom of recent months is evident in stores in Harbin, the provincial capital. In one grocery store, shelves were filled with hundreds of Russian products, including chocolate, flour and other food goods.
 

Wang Liang, manager of the store said that more and more Chinese consumers prefer buying Russian products because they are eco-friendly and of good quality, adding that trade will be boosted by closer Sino-Russian ties.
 

"Russia and China will become even closer after the recent sanctions imposed on Russia by the US, and we'll see more business opportunities on both sides," Wang said, referring to the latest round of sanctions from the US on Russia's energy sector.
 

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Sun Jialiang, who runs another imported product store in the city center, even hired a Russian baker from Russia's Far Eastern city of Ussuriysk to attract more customers when the store was opened last September.


Most of the products in Sun's store are imported from Russia through Suifenhe, a major land port and gateway to the Russian port city of Vladivostok.
 

"Some businesses in the city have been increasing their orders from Russia, which shows how high confidence has become," Sun noted.
 

These stores were just two examples that highlighted the recent rebound in trade with Russia after steep declines a few years ago, and local businesses are now focusing more on importing Russian goods, according to You Xu, director of the grocery store managed by Wang. The store used to export shoes and clothes to Russia, but You recently decided to adjust his business strategy to focus on importing Russian goods.
 

"It is obvious that we are enjoying a Sino-Russian honeymoon today," You declared.

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Growing interest

Efforts are continuing to further open up and boost trade volume between China and Russia.
 

In the first six months, the trade volume between Heilongjiang and Russia grew 25.4 percent year-on-year to $5.25 billion, Qiu Rui, an official from the local department of commerce, told the Global Times on Monday.
 

"The local government has encouraged diversified imports from Russia by setting up 11 border trading areas last year, eight of which have already become operational," Qiu noted.
 

Local authorities approved imports of frozen fish from Sakha Republic at the beginning of this year, and more Russian seafood is expected to enter the Chinese market in the coming months, according to You.
 

The authorities unveiled guidelines for border trade in the province in July 2016, capping the number of traders and lifting tariffs on more than 8,000 yuan worth of goods each day. The move is intended to facilitate border trading activities, according to a document on the website of the local government.
 

"This gives more room for the growth of imported consumer goods from Russia," Qiu noted.


Trade issues

While trade is booming, there are still some challenges.
 

After authorities in the province opened up local markets to Russian products, business representatives in Heilongjiang raised concerns over the quality of some of the imports and the risk of vicious competition.
 

"Some daigou [traveling shopping agents] still exist in border towns, and it is hard to ensure the authenticity of some so-called Russian products that are shipped through non-official channels and that are sold at much lower prices," Sun noted.
 

With more Russian imports expected to pour into the Chinese market, local authorities should come up with related regulations to crack down on fake goods, according to business representatives.
 

Furthermore, the boom in trade of consumer products only accounts for a small portion of the overall bilateral trade and might not help with Heilongjiang's trade deficit with Russia, according to officials.
 

"The trade deficit is likely to remain, at least for the short term, because the province is not export-driven and imports make up over 80 percent of the total trade," Qiu noted.

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