China- Russia trade likely to rise despite global stagnation

Despite fallout from the pandemic and disruptions to the world economy, trade between China and Russia is strongly resilient and could expand this year to exceed the record $ 110 billion in 2019, with energy and agriculture leading the trend, experts said.

These remarks came as the 24th session of the committee for regular meetings between the Chinese and Russian heads of government, cochaired by Chinese Vice Premier Hu Chunhua and Russian Deputy Prime Minister Dmitry Chernyshenko, was held on Tuesday.

“China and Russia have entered into a comprehensive strategic partnership in the new era, which will not be easily affected by difficulties,” Song Kui, president of the Contemporary ChinaRussia Regional Economy Research Institute, told the Global Times on Wednesday.

But for trade to grow this year, there’s still an estimated gap of $ 3 billion.

At current levels, bilateral trade may hit $ 108 billion this year, compared with around $ 111 billion last year, Li Ziguo, a senior research fellow with the China Institute of International Studies, told the Global Times on Wednesday.

The $ 3 billion shortfall could be offset once demand for Russian energy increases in winter, said Li, noting that energy accounts for the largest part of that shortfall, as 63 percent of ChinaRussian trade is in energy.

In addition, with soaring costs and container shortages, China- Russia trade largely remains normal, thanks to the smooth operation of ChinaEurope freight trains, Song said.

China- Russia trade is likely to expand because of structural adjustments, ongoing simplification and digitization of customs inspection, and local currency settlement, experts added.