MIL OSI Translation. Region: Russian Federation –
Minister of Economic Development of the Russian Federation Maxim Reshetnikov and Minister of Commerce of the People’s Republic of China Zhong Shan held the 23rd meeting of the Russian-Chinese Subcommittee on Trade and Economic Cooperation via videoconference.
According to the press service of the Russian Ministry of Economic Development, the ministers discussed an extensive economic agenda ahead of the high-level talks scheduled for autumn. The meeting was devoted to the issues of enhancing bilateral cooperation in the context of combating the spread of coronavirus infection and diversifying the forms of trade and economic ties between Russia and China. The meeting discussed prospects for expanding trade in agricultural products, as well as strengthening cooperation in multilateral formats and the development of exhibition and fair activities.
It was noted at the meeting that, despite the difficult economic and epidemic situation in the world and some subsidence of bilateral trade in the first half of 2020, there are positive changes in the commodity structure of Russian exports to the PRC. In particular, the indicators of supplies of Russian agricultural products, food products, chemical products, and ferrous metals increased.
In the first half of 2020, trade between Russia and China amounted to $ 48 billion, a decrease of almost 4 percent compared to 2019 ($ 50 billion over the same period). Against the backdrop of a global decline in business activity due to restrictions imposed in connection with the coronavirus pandemic, Russian exports to China in the first half of 2020 amounted to $ 23.6 billion, down 8.7 percent. Imports from Russia to China totaled $ 23.4 billion over the same period, an increase of 1.15 percent over the same period in 2019.
The resumption of external and growth in domestic demand had a tangible impact on the Chinese economy and, according to the report of the financial analytical center of the Bank of Communications of China, under the optimistic scenario, the economy will grow on an annualized basis by 2.5 percent.
In the second quarter of 2020, China’s GDP increased by 3.2 percent.
According to the China Media Corporation, in September, the Organization for Economic Cooperation and Development issued a press release, according to which in the second quarter of this year, China became the only country in the G-20, which recorded economic growth. The document indicates that during this period, China’s GDP increased by 11.5 percent compared to the first quarter. Elsewhere in the G20, the figure fell by an average of 11.8 percent over the previous period. According to the State Statistics Office of the People’s Republic of China, in the second quarter of 2020, China’s GDP increased by 3.2 percent in annual terms. In August, retail sales of consumer goods in China rose 0.5 percent year-on-year, while value-added in China’s industry showed an annualized growth of 5.6 percent.
According to the website “Russia’s Foreign Trade” based on data from the Federal Customs Service of Russia, China’s share in Russia’s foreign trade turnover in the first half of 2020 was 18.2 percent against 15.7 percent in the same period of 2019. In terms of its share in Russian trade in the first half of 2020, China took first place (as in the first half of 2019). The share of China in Russia’s exports in the first half of 2020 was 14.9 percent compared to 12.6 percent in the same period of 2019. In terms of its share in Russian exports in the first half of 2020, China took 1st place (the same was its place in the first half of 2019). China ranks first in terms of its share in Russian imports in the first half of 2020 – 23.2 percent versus 21.5 percent in the same period of 2019.
The nomenclature of mutual supplies has changed somewhat: imports of Chinese pharmaceuticals, detergents, lubricants, furniture and collectibles, antiques have increased. The purchases of meat and edible meat offal, ceramic products, and finished textiles made in Russia increased. In addition to the growth of Russian supplies of ferrous metals, perfumes and cosmetics, paper and cardboard, paper pulp products, the export of pharmaceutical products, printed books, newspapers and other products of the printing industry increased.
The largest reduction in Russian exports to China in the first half of 2020 was recorded for raw materials: oil, fuel, bituminous substances, timber and charcoal. The imports of Chinese ferrous metal products, garments, and land vehicles decreased.
Maxim Reshetnikov called the development of electronic commerce an important area of cooperation: last year, bilateral turnover in this area reached $ 4.8 billion. He proposed to discuss the issues of harmonization of conditions for mutual access of goods from the point of view of tariff and non-tariff regulation. It was decided that the experts of the two countries will work on this topic at the platform of the permanent working group in the field of electronic commerce.
“The main thing is to fulfill the instructions of the leaders of our countries, to finalize, agree on and sign a roadmap in order to reach the set goal of $ 200 billion in trade by 2024,” the head of the Russian Ministry of Economic Development emphasized. During the meeting, the heads of ministries agreed to complete work on agreeing a “road map” before the 24th meeting of the Commission for the preparation of regular meetings of the heads of government of Russia and China, scheduled for the fall.
The ministers expressed their intention to help restore the economic development of the two countries and exchanged information on best practices for overcoming the crisis caused by the pandemic. During the meeting, agreements were reached on the development of a number of bilateral documents on the development of cooperation in the Arctic, in the field of intellectual property, as well as between the regions of the two countries.
During the meeting, the participants reaffirmed their commitment to continue work to ensure mutual access of agricultural products to the markets of the two countries, to implement a number of initiatives to increase the volume of soybean exports from Russia to China. They also agreed to jointly promote issues on the WTO agenda of common interest, actively interact within international organizations, and develop cooperation with third countries.
Maxim Reshetnikov, Minister of Economic Development of the Russian Federation:
The main thing is to fulfill the instructions of the leaders of our countries, to finalize, agree and sign the “road map” in order to reach the set goal of $ 200 billion in trade by 2024.
Zhong Shan, Minister of Commerce of the People’s Republic of China:
Our main task is to put into practice the agreements that were reached between the leaders of the two countries. It is necessary to ensure the stability of the Chinese-Russian trade and economic cooperation, to promote its more intensive development.
A source: Russian newspaper
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.