The trade volume between China and Russia has exceeded 2448 billion US dollars, setting a new historical record. Chinese automobile enterprises have swept the Russian market, with local currency settlement accounting for more than 90%... How was this economic miracle across Eurasia achieved?
As a participant in the development of Sino-Russian trade, Zhou Liqun, the president of the All-China Business Chamber in Russia, recently told Observer Network in Moscow that from barter trade to trillion-level partnerships, Sino-Russian cooperation has experienced three major turning points. Especially after the outbreak of the Russia-Ukraine conflict, under Western sanctions, the substitution effect of Sino-Russian trade is obvious, and both sides are reconstructing the global supply chain in a new paradigm through joint construction of industrial parks, mutual recognition of standards, and digital trade.
At the same time, Zhou Liqun pointed out: "The number of Chinese enterprises registered in Russia exceeds 8000, surpassing the combined total of Germany and the United States, but the situation of 'hot politics and cold economy' has not been resolved." - Cross-border payment obstructions, high certification barriers, and insufficient logistics capacity are these invisible shackles restricting the sprint towards the $300 billion target. The future of Sino-Russian trade is promising, but challenges cannot be ignored. Both sides need to deepen their cooperation further and break these constraints.
[Interview/Observer Network Gao Yanping,整理/Observation Network Zheng Leihuan]
Sino-Russian economic and trade cooperation can be divided into three phases.
Observer Network: Can you share some significant turning points in Sino-Russian economic and trade cooperation based on your personal experiences from the 1990s to the present? For example, how did Chinese enterprises adjust in Russia after the financial crisis in 2008, and what were the opportunities and challenges brought by Western sanctions in 2014 and 2022?
Zhou Liqun: I was sent to study in the former Soviet Union by the Ministry of Education in the late 1980s, pursuing a Ph.D. in electrical engineering at Moscow Power Engineering Institute. After returning from studying abroad and joining China National Chemical Group Corporation, I was later dispatched to work in Russia. Over the past 35 years since graduating from my studies, I have been engaged in Sino-Russian economic and trade work, experiencing firsthand the changes in Sino-Russian economic and trade cooperation.
Sino-Russian economic and trade cooperation can roughly be divided into three stages. The first stage is from 1990 to 2000, which can be considered the starting period. In 1989, Gorbachev's visit to China and his meeting with Deng Xiaoping determined "ending the past and opening the future," normalizing Sino-Soviet relations. Therefore, over the ten years from 1990 to 2000, this period was the initial phase of Sino-Russian trade. During this time, it coincided with the end of the Soviet era and the early days of Russia, constrained by various factors, resulting in a relatively slow growth rate of bilateral trade volume. During these ten years, the Sino-Russian trade volume was less than 10 billion US dollars, mainly consisting of border trade, as well as trade in goods through barter forms. Of course, the development during this phase laid an important foundation for subsequent Sino-Russian economic and trade cooperation.
The second stage is from 2000 to 2010, during which the Sino-Russian trade volume experienced rapid growth. By 2010, the Sino-Russian trade volume had approached 100 billion US dollars. During this stage, the complementarity of Sino-Russian trade became increasingly evident, and the trend of growth in local trade cooperation gradually emerged. At the governmental level, various cooperation mechanisms were established between the two countries, such as the establishment of a cooperation mechanism between Northeast China and the Far East of Russia. Through mutual hosting of exhibitions (each year, Yekaterinburg and Harbin host each other's expos), establishing sister cities, etc., these efforts promoted the rapid growth of bilateral trade between the two countries.
The third stage spans from 2010 to the present, lasting 15 years, during which the Sino-Russian trade volume reached a new height, also referred to as the deepening stage. For instance, cooperation in energy, minerals, grain, infrastructure, logistics, and other fields has continued to deepen and enter a new phase. By 2024, the Sino-Russian trade volume reached a historical high of 2448 billion US dollars. The continuous development of the scale of economic and trade cooperation between the two countries plays a positive role in supporting the friendly relationship between the two nations.
China has been the largest trading partner of Russia for 15 consecutive years, which is indeed no easy feat. Not only do the two countries have geographical advantages, but they also have strong complementary economies. Russian energy, minerals, raw materials, and other products flow continuously into China, while Chinese light industrial products, automobiles, machinery and electronic products, etc., also flow continuously into Russia. Historically, the ratio of Sino-Russian trade has consistently been in deficit, meaning we import more than we export. In 2024, our exports to Russia were approximately 115 billion US dollars, while imports were 120 billion US dollars, nearly balanced.
Sino-Russian economic and trade cooperation has indeed undergone a wave-like development. On one hand, this is related to changes in the international situation, and on the other hand, it is the result of joint efforts by governments and enterprises of both countries. This once again confirms that Sino-Russian economic and trade cooperation is the friendly foundation of the two countries' relations, and the complementarity of bilateral trade determines that despite any waves encountered, the trade volume will ultimately develop and grow. This is my experience.
"A container’s customs declaration documents once filled half an office."
Observer Network: Specifically, when initially entering Russia, what "incompatibility" problems did companies or businesses you serve or contact face? For example, low logistics clearance efficiency, legal differences, etc. You once gave an example saying "a container's customs declaration documents once filled half an office." How were these problems gradually resolved?
Zhou Liqun: Sino-Russian economic and trade cooperation has indeed been full of ups and downs. In the early stages of Sino-Russian economic and trade cooperation, around 2000, Russia had issues such as an unregulated market and incomplete laws. Additionally, at that time, Chinese enterprises going abroad lacked understanding of Russia, so many enterprises would encounter "incompatibility" upon arriving in Russia.
This "incompatibility" mainly manifested in their lack of understanding of Russian market demands, laws and regulations, and industry development. Furthermore, the teams of these走出去 enterprises may themselves lack certain capabilities and levels. For example, some enterprises saw the popularity of the Russian light textile market and thus massively entered the market with various clothing, shoes, hats, fur products, etc. However, Russia has its own laws and regulations; these enterprises, without reliable partners or thorough market research, put products on the market through certain channels, which was somewhat inappropriate in terms of market access compliance, and thus incurred certain losses.
Some investment projects also lacked understanding of the local area, so they encountered difficulties in customs declaration, clearance, product certification, quarantine inspection, and other processes. However, it should be noted that at that time, Russia did indeed have many problems in terms of customs clearance efficiency, such as the problem mentioned earlier where "a container's customs declaration documents once filled half an office." To cope with customs declaration, various document translations in Chinese needed to be prepared, which piled up very high, and even then, customs clearance still failed. This not only delayed meeting market demand but also greatly delayed delivery times, increasing costs in all aspects.
This is what is referred to as "incompatibility," but the deeper reason reflects the insufficient preparation and understanding of our overseas enterprises regarding Russia.
Our走出去 enterprises cover various fields, and I’ll give one example. In the Far East region of Russia, there is a lack of agricultural machinery when large areas of land are cultivated. Chinese enterprises saw this and signed contracts with Russia to sell equipment. However, for this equipment, Russia requires certification, not only quality certification but also technical documentation. After the product passes, we need to hire a third party for customs clearance, then translation and public relations work, which takes quite a long time.
Russia's legal standard system is different from China's. Russia mainly refers to the original Soviet design standards, so most imported electromechanical equipment requires certification. Due to a lack of understanding in this area, our enterprises accumulated a large amount of products that could not be cleared normally. This not only incurs high costs but also misses delivery deadlines, which is a lesson learned.
After experiencing these difficulties and setbacks, the quality and quantity of走出去 enterprises are constantly increasing. These enterprises are now the main body of Sino-Russian economic and trade exchanges, playing their role in driving the growth of bilateral trade.
In 2007, the iron pot market in Yekaterinburg was full of Chinese goods and Chinese merchants. Guangzhou Daily
The "substitution effect" after the Russia-Ukraine conflict
Observer Network: After the Russia-Ukraine conflict in 2022, Western enterprises withdrew from Russia, but Chinese car brands (such as Haval) and electronics (such as Xiaomi) saw their shares rise significantly. You mentioned that the number of Chinese enterprises registered in Russia surged, exceeding 8000, far surpassing the number of German and American enterprises; at the same time, the trade volume between China and Russia also rose sharply. As the president of the chamber of commerce, how do you evaluate this "substitution effect"?
Zhou Liqun: Western sanctions against Russia began in 2014 and have lasted for more than 10 years. Starting in 2022, Western countries imposed unprecedented economic sanctions on Russia, which has placed enormous pressure on the Russian economy.
After the outbreak of the Russia-Ukraine conflict, the number of Chinese enterprises registered in Russia increased rapidly. This is mainly because the withdrawal of Western enterprises in various fields created market vacancies, and the Russian government also introduced parallel import and replacement policies, encouraging products from various channels to replace the withdrawn Western enterprises and stopped importing products. In 2023, the number of Chinese enterprises officially registered in Russia reached more than 8000, and this number is still rising, which will undoubtedly contribute to the growth of Sino-Russian trade.
The entry of Chinese enterprises into the Russian market is both necessary due to the situation and driven by the market. For example, the Chinese engineering machinery enterprise Sany Group, which used to rank in the middle globally in terms of sales at overseas outlets, has effectively seized opportunities and strategically positioned itself in Russia in recent years, jumping to the forefront of overall overseas enterprise sales. Therefore, seizing opportunities can lead to development and contribute to bilateral trade between the two countries.
Of course, this is just one example. Other similar enterprises entering the Russian market involve automotive parts, electronics, home appliances, and multiple other fields. As mentioned earlier, the number of Chinese enterprises registered in Russia has already exceeded 8000, which is six times the number of German enterprises in Russia and ten times the number of American enterprises. Before the Russia-Ukraine conflict, among the top fifty foreign enterprises by sales volume in the Russian market, only one Chinese enterprise was listed. Currently, among the top twenty, there are six Chinese enterprises. So we can see that in recent years, Chinese enterprises in Russia have seized market opportunities and achieved both quantitative and qualitative improvements.
Observer Network: Besides the surge in the number of Chinese enterprises registered, what new positive developments have occurred in Sino-Russian economic and trade relations after the Russia-Ukraine conflict?
Zhou Liqun: Under the current international situation, Sino-Russian trade has seized key opportunities and achieved historic growth, with further optimization of the trade structure. One of the most significant changes is the improvement in the long-standing trade deficit situation, with imports and exports gradually tending toward balance. This transformation has major significance for the sustainable development of Sino-Russian trade.
I believe that the breakthrough in local currency settlement between Sino-Russian trade stands out particularly. Affected by Western financial sanctions on Russia, the dollar and euro settlement channels have been blocked, so Sino-Russian countries have taken advantage of the situation to vigorously promote local currency settlement. Within the past two years, the proportion of local currency settlement in Sino-Russian trade has reached over 95%, with Renminbi and Ruble becoming the main settlement currencies for bilateral trade. This move is highly beneficial for China.
Secondly, the optimization of the trade structure is also worth noting. With the help of import substitution and parallel import policies, numerous Chinese products and industries successfully entered the Russian market, changing the previous trade pattern. This adjustment also aligns with the actual needs of China's economic development.
Thirdly, it has successfully driven the development of Sino-Russian logistics infrastructure and logistics transportation business. For example, the opening of the Tongjiang Railway Bridge and Heihe Highway Bridge complements traditional railway transport and sea routes, greatly improving logistics conditions between China and Russia. The daily number of China-Europe freight trains is also growing significantly, with hundreds of trains shuttling between China, Russia, and Europe, and port infrastructure has been significantly upgraded.
In addition, the influence of Chinese enterprises and products in the Russian market continues to expand. Through deepening international capacity cooperation, promoting enterprises to participate in "Belt and Road" construction, strengthening connectivity, the share of Chinese enterprises and products in the Russian market keeps rising. Even if the international situation becomes complex and unpredictable in the future,凭借前期积累的良好基础 and competitive advantages, the share of Chinese enterprises and products in the Russian market will continue to consolidate, laying a foundation for the long-term development of Sino-Russian economic and trade cooperation.
The four difficulties facing Sino-Russian trade
Observer Network: Despite the increase in trade volume between China and Russia after the Russia-Ukraine conflict, last year's total trade volume was only 2448.195 billion US dollars. In comparison, the trade volume between China and the United States reached 6882.8 billion US dollars; the investment level of Chinese enterprises in Russia is much lower. The "hot politics and cold economy" situation between China and Russia still exists. What do you think are the main challenges facing Sino-Russian trade?
Zhou Liqun: In 2024, the trade volume between China and Russia achieved a historic breakthrough, soaring to 2448 billion US dollars, setting a new record. However, this achievement is not the endpoint of growth; the future of Sino-Russian trade still holds immense potential for growth.
From a political perspective, the high level of political trust and strategic mutual benefit between the two countries provide solid support for the development of bilateral trade. In the economic sphere, the stable complementarity of Sino-Russian economic and trade remains unchanged in the long term. Russia possesses abundant resources that meet China's market demands; China's advantage in the electromechanical equipment industry is significant, and this natural trade structural difference lays the foundation for continuous growth in bilateral trade. Moreover, as neighboring countries, Sino-Russian trade benefits uniquely from trade facilitation. These factors collectively provide strong assurance for the future increase in trade volume.
As you mentioned earlier about the "hot politics and cold economy" situation between China and Russia, people might think that with friendly relations, trade volume should quickly rise. However, this is more of an expectation. In fact, compared to the vast trade scales formed by long-term ties between the U.S., EU, and ASEAN, achieving today's trade volume between China and Russia is truly hard-won. Notably, China has been Russia's largest trading partner for 15 consecutive years, with annual trade volumes steadily growing, achieving an increase of over 200 billion US dollars in the past three stages.
In the future, the trade volume between China and Russia will certainly continue to grow. Although remarkable achievements have been made so far, this figure is definitely not the peak. Facing current difficulties and challenges, as long as confidence is firm and relies on the solid support of the strategic partnership between the two countries, Sino-Russian trade will continue to grow, and the friendship between the two peoples will deepen further.
Observer Network: We also hear some Russian experts mention that due to concerns about Western sanctions, Chinese enterprises face political pressure when conducting business in Russia. What do you think are the more prominent challenges and difficulties currently faced?
Zhou Liqun: Objectively speaking, behind the realization of over 2400 billion US dollars in trade volume between China and Russia, there are still many practical difficulties and challenges. Affected by Western sanctions on Russia, some Chinese enterprises with assets and operations overseas find it difficult to fully engage in cooperation with Russia due to risk considerations. This is the objective reality of current cooperation, and we need to understand it.
Among these, the foremost challenge is payment settlement. Western sanctions on Russian financial institutions, enterprises, and individuals have created numerous obstacles in the bank payment process for Chinese enterprises and their Russian partners. Although enterprises are actively seeking solutions, the problem of settlement difficulties still persists, which is the first issue.
Secondly, border port infrastructure urgently needs upgrading. The Sino-Russian border stretches thousands of kilometers, yet there is only one railway bridge and one highway bridge. The century-old stations such as Manzhouli Railway Port and Suifenhe Port are struggling to meet the growing trade demands. Under the Belt and Road Initiative, enhancing port interconnectivity and upgrading infrastructure capacity is urgent.
Thirdly, the efficiency of cross-border logistics and customs clearance needs improvement. Although the China-Europe freight train routes are expanding, the number of overseas trains is also increasing, but there is still considerable room for improvement in the level of facilitation in customs clearance. For example, the efficiency of quarantine inspection procedures, the construction of green channels, and the operational efficiency of railways need to be enhanced.
Fourthly, there is insufficient mutual recognition of certification standards between the two countries. With the increase in trade volume of electromechanical equipment and other products, the technical standard differences between China and Russia have become more apparent. Russia's current national standards, inherited from the Soviet era, have yet to effectively align with China's current standards. Equipment certification cycles are long and procedures are complex, urgently requiring the promotion of mutual recognition of quality systems by industry experts from both countries to reduce trade barriers.
Once core issues such as financial payments, border infrastructure, facilitation of customs clearance, and standard certification are resolved, the growth potential of Sino-Russian trade will be further released. It should be noted that only about 30% of the mineral resources in the Far East region of Russia have been explored, so there is still great potential for mining; this naturally complements China's massive demand for energy resources. Meanwhile, China's supply advantages in electromechanical equipment and light textile daily necessities will continue to meet Russia's market demands. These structural complementarities determine that after overcoming existing challenges, Sino-Russian bilateral trade will inevitably reach higher levels.
Observer Network: You mentioned four difficulties earlier. Regarding cross-border settlements, can you explain specifically the issues in this area?
Zhou Liqun: First, promoting the internationalization of the Renminbi and bilateral local currency settlements is beneficial for us. Both China and Russia benefit greatly. However, currently, due to the impact of sanctions, payment must address risk avoidance and regulatory issues. In the long term, solving payment issues is crucial for sustaining the growth of Sino-Russian economic and trade cooperation. This requires deepened collaboration and cooperation between the financial sectors of the two countries, not only expanding the scale of local currency settlements but also conducting in-depth research on payment systems.
Currently, there is already a local currency payment system CIPS (Cross-border Interbank Payment System for Renminbi) between China and Russia, which is distinct from Swift. In the context of Western sanctions, the usage frequency of this system has significantly increased, but there is still room for improvement in terms of security and convenience. Prior to the sanctions, both sides had relatively low reliance on it. Now, to push for local currency settlements and enhance cooperation, the urgency of optimizing this system is more pronounced.
Additionally, further efforts are needed to make the tools more professional and rigorous. This requires communication and in-depth discussion between financial institutions and departments of the two countries regarding payment systems, tools, and配套 insurance and other trade support mechanisms. If the financial payment guarantee does not match the rapidly growing demand for bilateral trade, it will undoubtedly become a bottleneck constraining economic and trade development.
Beyond the payment issue, as I mentioned earlier, infrastructure construction, railway and logistics department collaboration, facilitation of customs clearance, and localization are all areas that require significant strengthening and improvement.
Observer Network: You also mentioned the issue of standard recognition. Could you discuss specific product standards and the outstanding problems currently existing in the mutual recognition of standards between the two countries?
Zhou Liqun: Currently, Chinese products such as cars and engineering machinery exported to Russia need to address certification issues. In Russia, these types of products must obtain certification permits issued by government departments to handle licenses, enter the market for transactions, and be put into use.
Russia's current certification standards follow its national standards, with clear requirements for product noise, emissions, safety coefficients, etc. Even mature equipment exported by China that has been stably operating domestically for many years must have its technical standard parameters and codes translated according to Russian requirements and undergo detection by Russian laboratories, review by standard institutions, and approval by government departments, involving multiple procedures. The entire certification process is quite lengthy. This current situation results in widespread certification difficulties for Chinese-exported cars, engineering machinery, agricultural machinery, and other products.
These products are currently the main growth categories for Chinese exports to Russia and are also market gaps urgently needed to be filled by Russia under the sanction background. However, due to unchanged certification standards, there is a clear disconnect between market demand, product supply, and certification approval. In response, both Sino-Russian import and export enterprises suggest improving the bilateral certification mutual recognition mechanism, i.e., products certified in China can simplify the certification process in Russia; products certified qualified in Russia will also be recognized in China. This could significantly shorten the certification cycle and effectively promote the development of relevant industries.
Localization is an embodiment of Chinese enterprises' internationalization
Observer Network: You mentioned earlier that due to sanctions and other reasons, we cannot cooperate deeply in various aspects. What strategies do you think enterprises, chambers of commerce, and both governments have in this regard?
Zhou Liqun: To address these difficulties and challenges and promote the growth of Sino-Russian economic and trade cooperation, governments, enterprises, and industry associations need to work together. At the governmental level, China and Russia have built a fairly complete network of cooperative mechanisms, covering cooperation committees in multiple fields such as national economic and trade, logistics and transportation, customs, and humanities. Regional cooperation mechanisms such as those between Northeast China and the Far East of Russia, and between the middle and lower reaches of the Yangtze River and the Volga River Basin Federal District of Russia, have also been established. These government-to-government mechanisms are already quite sound, reflecting the high importance both governments place on promoting bilateral trade growth.
Currently, the government should continue to focus on efficiently activating the existing mechanisms to solve the practical problems we face today. For example, accelerating the resolution of quality standard mutual recognition issues or enhancing the facilitation of personnel exchanges—currently, visa-free travel has not been achieved between China and Russia, the visa validity period for business personnel is only one year, and obtaining long-term work permits for enterprise personnel is cumbersome. These issues urgently require strengthened communication and collaborative solutions between both governments.
On the enterprise level, active actions should be taken. By leveraging platforms such as the China-Russia Expo, trade fairs, and promotional meetings, enterprises should deepen exchanges and cooperation, strengthen trust. Currently, the desire of enterprises is quite strong, especially during this period of economic and trade cooperation opportunities. Enterprises need to actively participate in bilateral markets and project collaborations to pragmatically drive cooperation forward.
Industry associations and business associations need to continue playing their bridging roles by building service platforms, providing policy guidance and legal consultations to protect enterprises in going global. As the scale of Chinese exports of machinery and equipment to Russia expands, the next phase is "de-localization," through factory production in Russia, which can not only avoid risks such as changes in tax policies and certification barriers but also stabilize market shares, create jobs locally, and promote economic development.
For example, the Russian Chinese Chamber of Commerce currently has eight industry branches (covering fields such as automobiles, law, tourism, e-commerce, etc.) with more than 4000 member enterprises. Through continuously organizing seminars, promotional events, etc., we provide full-process services to assist enterprises in achieving localization development and scale expansion in compliance with operations.
Observer Network: Localization is indeed very critical. Like what you mentioned earlier, among the more than 8000 registered enterprises, what is the proportion of localization? What is the attitude of the local government towards this?
Zhou Liqun: Here, localization does not refer to trading companies but rather to industrial companies, such as domestic main factories producing equipment, vehicles, engineering, machinery, etc. Once these products are exported through trade, we establish after-sales services, technical installation, training, etc., so here, localization refers to the product. Not only does the company register and establish itself locally, but its production, manufacturing, after-sales service, and cultivation also take place locally. This is called localization. The local government welcomes this, and it is also a hallmark of our true internationalization.
Therefore, under the assurance of product share and market demand, the next step is to consider the localization process of the product and the industry. The local government is also welcoming, as it will reflect in terms of taxation, employment, and social responsibility. Currently, the Russian government has policies in the Far East region and some economic development zones to encourage foreign enterprises to set up production.
Take Haier, a Chinese brand, which has been producing in Russia for ten years, and its second-phase factory is already under construction. For example, Haval cars have also built factories locally for many years, launching new models regularly, which sell well. There are also other industries undergoing localization negotiations, so this is a big trend.
Observer Network: Since the Russia-Ukraine conflict in 2022, how has China's green investment in Russia been?
Zhou Liqun: This part has increased. For example, in agriculture, animal husbandry, and forestry, there are new green investment projects. Currently, China is leading in technology industries such as artificial intelligence and digital trade, so Russia hopes and welcomes our increased investment and product landing in the green sector.
Trust is Key
Observer Network: You once said that "the biggest cost for Chinese enterprises in Russia is the cost of trust." Could you talk about some typical cases you encountered in the past twenty years and how trust was gradually established?
Zhou Liqun: As Sino-Russian economic and trade cooperation develops, the credibility of enterprises from both countries is gradually improving, and they are becoming more harmonious. The historical development stages of trade between the two countries are different; we started from barter trade to formal settlement trade, which was built up bit by bit.
In the past, both sides had lessons in this aspect. For example, our export enterprises signed contracts, and after the goods arrived, the other party's enterprises might fail to fulfill payment obligations, eventually causing losses. Therefore, establishing credibility between the two sides and reducing psychological costs to avoid losses is very important. Currently, whether in investment or trade, the continuous strengthening of credibility between the two sides is reflected in the growth of trade volume and the number of Chinese enterprises. Therefore, in recent years, the number of disputes and malicious cases in Sino-Russian trade is not many, which is a good thing.
This is thanks to the development of political relations between the two countries and the unwavering mutual support from both enterprises. Therefore, we always encourage the spirit of contract, especially during the Russia-Ukraine conflict. We have hardly abandoned orders or withdrawn from the market; instead, we have greatly strengthened cooperation and market development with Russia.
Park construction is a characteristic of Sino-Russian cooperation. We have experienced the start-up stage of border trade and the rapid development stage of the market. Moscow has large markets like Sadovaya and Lublyano where Chinese traders gather, and local media sometimes reports negatively on them. Both governments pay high attention to this. Park construction serves two purposes: first, to provide a platform for enterprises to concentrate on development; second, to address issues of legality in product and business operations in a more standardized manner; third, to promote cooperation and development between enterprises from both countries and provide services such as business registration, financial management, legal consultation, work visas, technical training, etc.
For example, the Moscow China Trade Center "Huaming Garden" has its own office buildings and cultural park, and currently, there are many Chinese-funded enterprises入驻. Additionally, we have other similar parks such as the Chinese Business Park in St. Petersburg and business parks in other Russian cities. These parks play different roles and functions, making significant contributions to Sino-Russian enterprise economic and trade cooperation.
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Moscow Huaming Garden Russian Satellite Communications Agency
In the future, our parks need to continue improving, requiring more support from both governments, especially local governments, in terms of taxation and employment, to attract more enterprises to settle in and boost local economic development. Because Chinese enterprises tend to cluster, these parks have also become iconic places attracting Chinese enterprises to settle down.
In the future, besides encouraging industrial enterprises to produce locally, we also need to encourage parks to continue developing better. In the early stages of China's reform and opening-up, we also established various parks to attract foreign investment and boost local economic development, such as Suzhou Industrial Park. Russia is also like this, and the overall operation of the parks is good. They will definitely have better development in the future.
Observer Network: Over the past few years, you mentioned that digital economy, green development, and biomedicine will become new drivers and growth points for economic development in China and Russia. Why do you say so? Has the development over these years verified your prediction?
Zhou Liqun: From a developmental perspective, high-tech and technology-related fields are a direction, and they definitely have prospects. Over the past thirty years, the growth of Sino-Russian trade has mainly focused on traditional areas, particularly the trade of energy and raw materials. In the future, Sino-Russian cooperation in agriculture and technology will have greater prospects.
Currently, China is ahead in products such as artificial intelligence and big data, which is an objective fact. Therefore, the Russian market also needs to cooperate with China in this regard, and Russia's technologies in aerospace, nuclear energy, and other fields are something we need to learn and strengthen cooperation on.
Arctic shipping routes are highly anticipated
Observer Network: Sino-Russian Arctic shipping route cooperation is called the "Ice Silk Road," but the actual freight volume is still limited. What do you think are the constraining factors? (Such as icebreaker ship costs, port facilities)
Zhou Liqun: The Arctic shipping route is one of the new global logistics channels. In the past, China's logistics supply channels were relatively single, relying mainly on railways, highways, and maritime routes through the Malacca Strait and the Suez Canal. In recent years, these traditional routes have encountered frequent uncertainties, such as the Suez Canal being affected by activities of the Houthis and regional instability in the Middle East, posing risks to logistics supplies.
In this context, Chinese enterprises have actively participated in opening the transportation channel from Shanghai, China, to St. Petersburg and Arkhangelsk, Russia. From 2023 to 2024, Chinese enterprises organized fleets departing from ports such as Shanghai, passing through Russia's Far East, the Bering Strait, reaching the Arctic region of Russia, and extending to European cities such as St. Petersburg and Moscow.
The opening of this logistics channel not only means a significant reduction in transportation time to within 20 days but also reduces logistics costs by about 30%, effectively avoiding the risks of traditional routes and meeting the demand for cost reduction and efficiency enhancement. Chinese enterprises cooperating with Russian enterprises have successfully established this channel and expanded the container transportation network to cities like Moscow, which is very promising.
However, the Arctic shipping route still faces some limitations and difficulties. For example, due to climate effects, the Arctic region has a long ice season, allowing navigation only from July to November each year, which limits the time for logistics transportation. Additionally, the number of icebreakers required for year-round navigation is insufficient, and Russia faces certain difficulties in adding new vessels. Infrastructure along the route, such as port support, climate radar communications, etc., still needs improvement.
In general, the Arctic shipping route has opened a new path for global cargo transportation. If all parties work together to improve port and dock support, enhance vessel capacity, the navigation time will certainly be extended further from the current four months to five or six months. From the perspective of the chamber of commerce, we encourage member enterprises to actively participate in Arctic shipping logistics transportation. This not only promotes logistics exchanges between southern China, northern Russian cities, and Europe but also has broader development prospects on the basis of cost reduction and efficiency enhancement.
Water depth and channel conditions in the Arctic regions Wikipedia
Observer Network: What is the main mode of transportation for Sino-Russian economic and trade exchanges currently?
Zhou Liqun: The logistics channels between China and Russia include land transport and sea transport. Land transport is mainly rail and road. China-Europe container trains rely heavily on rail transport, with some road freight passing through ports such as