Russian Industry and Trade Ministry expects slowdown in growth of mutual trade with China in medium term

KAZAN. Aug 19 (Interfax) - Mutual trade between Russia and China since the beginning of the current year has shown a certain decline against the backdrop of sanctions pressure and market conditions in various commodity markets, and in the medium term, more moderate growth rates of bilateral trade turnover compared to previous years should be expected, Industry and Trade Minister Anton Alikhanov said.

Alikhanov oversees the ministry's non-commodity non-energy exports.

"In the current year, we are recording a certain decline in mutual trade. The reasons for this dynamic are, of course, varied. This includes the negative impact of sanctions and other forms of external economic pressure on our countries, and volatility in certain commodity markets. We also note the gradual saturation of the market with Chinese products in certain market segments, as well as internal economic processes both in Russia and in China. In my opinion, in the medium term, we should expect more moderate growth rates of mutual trade than before, with a sequential increase in the share of high-tech and innovative products," Alikhanov said during a speech at the international forum "Russia and China - Mutually Beneficial Cooperation."

Alikhanov recalled that record trade turnover between Russia and China was achieved in 2024, at almost $245 billion (+2%).

"I believe that in the long term, the most successful initiatives will be those that involve investment in joint production, technology transfer and the introduction of advanced technologies. And for large investors in the Russian economy, the strategically correct decision is to conclude a special investment contract [SPIC, which provides benefits in exchange for investment obligations]," he said.

Within the framework of the Russian-Chinese intergovernmental commission on investment cooperation, a list of significant Russian-Chinese projects has been created, which currently includes 63 initiatives in metallurgy and the chemical, radio-electronic, automotive, and pharmaceutical industries with a total value of over $130 billion, he said.

Industrial cooperation is also being carried out within the framework of the Russian-Chinese commission for the preparation of regular meetings of heads of government and sectoral sub-commissions. The next meeting of the subcommission on industrial cooperation will take place next week in Beijing, Alikhanov said.