The current state of Russian-Chinese trade and economic relations
According to the Federal Customs Service's customs statistics, Russia's 2008 foreign trade turnover with China totaled $55.9 billion and increased by 38.7% on 2007. Exports and imports totaled $21.1 billion (a 33.3% increase) and $34.8 billion (a 42.3% increase), respectively.
In 2007, Russia's negative trade balance with China totaled $8.5 billion, rising to $13.6 billion in 2008.Russian exports to China are dominated by the mineral products commodity group, primarily crude oil and petroleum accounting for 56.4% of the grand total. Russia also exports considerable amounts of timber and pulp and paper products (15.5%), chemicals (13.9%), metals and metalware (5.3%). Machinery, equipment and transport systems make up for 4.4% of Russian exports, with all other commodity groups accounting for 4.5% of Russia's export shipments.
China's share in overall Russian exports dwindled from 2002 until 2007, stabilising at 4.5% in late 2008.
Russia mostly imports the following four commodity groups from China, namely, machinery, equipment and transport systems; textile and related products and footwear; metals and metalware; chemicals. All other commodity groups account for 15.8% of Russia's imports from China.
In 2008, machinery and technical products accounted for 53.9%, matching 2007 levels. The 2008 share of textile products and footwear was 15.1%, a 0.6% increase. Metals and metalware accounted for 8.4%, a 0.2% decline. Chemicals accounted for 6.8% of total Russian purchases in China, a 0.1% increase.
The specific share of Chinese foodstuffs and minerals being imported by Russia continues to dwindle steadily, despite the increase in terms of their imports.The share of chemicals in Russian imports is subject to cyclic fluctuations, a characteristic feature of the chemicals market.
China's share in total Russian imports tended to increase during the period under review, reaching 13% in 2008.
According to preliminary Russian customs statistics, the Russian-Chinese trade turnover fell by 37.1% in January-July 2009 and tapered off at $19.5 billion in terms of its value. These and other subsequent statistics are in comparison with 2008. At the same time, Russian export and import volumes fell by 31.2% and 40.9% down to $8.5 billion and $11.1 billion, respectively.
In comparison, Russia's trade turnover with non-CIS countries fell by 45.1% in January-July 2009, including exports from Russia by 46.7% and imports by 42.3%.
Gradual improvements in bilateral trade are highlighted by China's increased share in Russian exports and imports. Although general Russian-Chinese trade indices fell in January-July 2009, Russian exports are being gradually reoriented to China. In January-July 2009, China ranked as Russia's sixth major trade partner in terms of exports, but occupied seventh place in 2007-2008. China accounted for 5.6% of Russian exports (4.5% in January-June 2008).
The share of Chinese goods in Russian imports is also considerable, exceeding 12% since 2007 and totaling 12.9% in January-July 2009. China was Russia's second most important trade partner in terms of import value in 2006-2007, and jumped to first place in 2008.
In January-June 2009, Russian machinery-technical exports increased by 12.5%, primarily due to increased general-engineering equipment and aircraft deliveries by 51.7% or by $118.4 million and by 210% or $32.5 million, respectively. The export increase of metals and metalware by 20.9% was mainly facilitated by more substantial deliveries of ferrous metals and aluminum (an increase of 56.2% and 160%, respectively).
At the same time, Chinese import volumes fell by 40.9% in January-July 2009 to $11.1 billion.
Import volumes are plunging inside every commodity group without exception. Machinery and technical imports have plunged more than others by 50.9%, or by $5.2 billion.
The break-down is as follows:
Metalware ........................... 44.2% ($620.9 million less)
Chemicals ........................... 37.8% ($513.7 million less)
Knitwear, textile products
and footwear imports .............. 13.4% (less $366.9 million less).
Foods and
agricultural feedstock ............. 22.1% less ($173.2 million less).
