论文总字数：47724字

摘 要

Chapter 1 Introduction 1

1.1 Evolution of economic relations of China and Russiа 1

1.2 Research Background 3

1.3 Research purpose and significance 6

1.4 Layout of the thesis 7

Chapter 2 The Current Development Status of the Sino Russian Trade 8

2.1 Dynamics of foreign trade of China and Russia in 2001-2010. Shanghai Cooperation Organization. 8

2.2 Globalization of trade and economic relationships between China and Russiа from 2010 to present times 9

2.3 Development of cross-border cooperation 11

Chapter 3 Priority Areas of Bilateral Trade in 21st Century 13

3.1 The multilateral format of international relations: the “One Belt, One Road” initiative. 13

3.2 Scientific and technological and innovative partnership between China and Russia…………….14

3.3 Electronic trade and the dynamics of electronic trade 15

Chapter 4 Analysis of the difficulties in Sino Russian Trade 17

CHAPTER 5 CONCLUSION……………………………………………………………………..….20

Reference 21

Acknowledgements

I would like to thank to all the people who have ever helped me in this project.

I wish to depict my warmth and appreciation to my supportive supervisor Wang Weilin, who made my paper successful and assisted me to achieve my goal. I am extremely grateful for his guidance through each stage of the process. He always made me feel confident in my abilities. His encouragement, vision, support and motivation have inspired me.

I wish to present my special thanks to all teachers for their attention and support throughout my study. Also, I want to thank them for knowledge that they have given.

I would like to pay my regards to my family for their love, attention, caring and sacrifices for preparing me for my future.

Finally, I wish to show my gratitude to my classmates and friends, who have been with me at the university.

Research on the Current Situation and Promotion Measures of

Sino-Russian Trade

Abstract

In recent years, the cooperation of People's Republic of China and the Russian Federation in various fields has been increasingly strengthened, with fruitful results and good momentum of development. It has become a model of good neighborly, friendly, solidarity and mutual assistance between countries.

This thesis first briefly reviews the history of trade between China and Russia, and introduces the current situation of cooperation. Through a comprehensive analysis of the relationship among two countries in the fields of modern trade, economy, investment, science, technology and finance, it proves the importance of this relationship for the two countries. China's "the Belt and Road" initiative, the chances for technological innovation cooperation and Electronic trade bring chances to the two countries' trade development, it is also analyzed. Then, the thesis analyzes the existing problems of Sino Russian trade. Finally, based on the above analysis, this paper offers some targeted advices for further development of Sino Russian trade relations.

Keywords: Sino-Russian Trade; International Cooperation; Globalization; the Belt and Road (Bamp;R); Investment

中俄贸易的现状与促进措施研究

中文摘要

近年来中华人民共和国与俄罗斯联邦在各领域的合作日益加强，卓有成效，发展势头良好，已经成为国家间睦邻友好、团结互助国家关系的典范。

本文首先简要回顾了中俄贸易的发展历史，并介绍了目前的合作现状，并通过对两国间在现代贸易，经济，投资，科学，技术和金融关系等领域的全面分析，证明了这种关系对于两国的重要性。本文还分析了中国提出的“一带一路”倡议及科技创新合作、电子商务给两国贸易发展带来的机遇，随后，本文分析了当前中俄贸易存在的问题，最后，在以上分析的基础上，本文提出了有针对性的促进中俄贸易关系进一步发展的对策建议。

关键词: 中俄贸易 国际合作 全球化 “一带一路” 投资

Chapter 1 Introduction

The relationship between China and the Russian Federation continues for more than four hundred years. In all important time periods of relations, both countries pursued mutually beneficial political and economic goals. The basis of this interaction is the coincidence of the positions of the two countries and a mutual desire to build up joint actions. The analysis shows that almost always the two countries managed to maintain a peaceful neighborhood, alliance.

The scale of investment and economic cooperation in the neighboring areas of the two countries is steadily expanding. Both parties are actively developing cooperation and raising its level in such areas as light industry, logistics, deep processing of wood, development of natural resources, financial services, production and processing of agricultural products.

Openness and cooperation are the pronounced basis for the continuous growth of commodity-economic relations between China and Russia. The relations between the two countries themselves are an example in the field of economic globalization and successful international cooperation.

1.1 Evolution of economic relations of China and Russiа

The rapport of China and Russia has a long history. The growth of trade relations between the two states in 1800-1900 is called the stage of prosperity. Russian exports through Kyakhta increased, reaching in 1840 40% of all exports to Asia and in 1850, 60.5%. Among exported goods, the number of cotton fabrics, cloth, etc. is increasing. During this period, the range of goods expanded significantly. Gold, silver, precious stones, Siberian furs began to be imported to the international market in Kyakhta, and tea was the most popular from the Chinese side. Important from an economic and strategic point of view was the Amur River. In 1833 ^[1], tea worth 2,025,000 rubles was delivered to the Rostov Fair. Sold for 1800,000 rubles. In the same year, tea was brought to the Nizhny Novgorod Fair in the amount of 14521750 rubles.In 1892 1, 117,254 tons of tea were transported from China to Russia through Odessa. Through Kyakhta - 89707 tons of tea, along the Amur - 2381 tons of tea.The final stage of Kyakhtinsky international trade from 1900 to 1918 was the construction of the Trans-Siberian Railway and the Chinese Eastern Railway.With the advent of Soviet power, trade partnership of the Soviet Union and China were planned. The plan was dictated by the functioning administrative-command method of managing the economy. All indicators on foreign trade were determined by government trade delegations of both countries at joint meetings. The primary export items of the USSR were engineering products. China supplied the USSR with raw materials and products of light industry. During this period, trade acquires a state direction.In 1938 ^[2], with the participation of several thousand Soviet specialists, Chinese workers built a highway for 2925 km via Xinjiang to deliver goods from the USSR. Also, in 1938, between the USSR, the People's Republic of China and Xinjiang, an agreement was reached on the construction of an oil refinery in Tushanzi on an equal footing. Initially, there were 9 wells. Crude oil daily debit was 1.2 tons.In 1940, Sino-Soviet trade relations developed intensively. As a result, in a comparatively short period, the people of the USSR and China became members of the Great Friendship. This friendship contributed to the fruitful economic, scientific, technical and cultural development of the two countries. In the late 40s, the historical necessity dictated new forms of cooperation. The basic principles of mutual understanding, friendship and mutual assistance in solving important historical problems that each country faced. In October 1949, after the proclamation of the People's Republic of China, the Chinese government made its choice of the socialist path of developing the country.In February 1950, during the visit of Chairman of the Central Government Mao Zedong to the USSR, the Treaty of Friendship, Union and Mutual Assistance between the PRC and the USSR was signed. The contract had a term of 30 years. The agreement provided for the comprehensive expansion of cultural and economic bonds between the USSR and China. A number of agreements were signed in parallel.The widespread support provided by the Soviet Union to China in the 1950s involved not only the supply of equipment for refurbished and under construction enterprises, but also the secondment of specialists to set up this equipment. In addition, the Soviet Union helped China with a borrowing of $300 million ^[3]. This was necessary for many needs, including the purchase of facilities and machinery and other goods in the USSR. Technical assistance was provided in the following areas:1.Scientific-technical Soviet-Chinese cooperation;2.the secondment of Soviet specialists to work in Chinese enterprises;3.training of Chinese nationals both in the China and in the Soviet Union.There was a recorded agreement on the organization of partnerships in the extraction of oil and non-ferrous metals, the construction and repair of ships.During this period, over 250 large enterprises equipped with the latest equipment were commissioned in China. Among them are Anshan and Wuhan Iron and Steel Works. Changchun Automobile Plant, a complex of Luoyang factories. Such as bearing, tractor, mining equipment. Some data on the volume of Soviet-Chinese trade

In 1991 2, after the collapse of the USSR, a new era of relations between Russia and China begins, officially good relations are maintained. About relations between the two countries have moved from simple to the normalized neighborly partnership. The legal framework for bilateral economic cooperation was laid by the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China (PRC) in March 5, 1992. In accordance with this document, the governments of Russia and China annually signed a protocol on trade and economic cooperation for the next year. According to the specified agreement, settlements and payments under contracts are made in freely convertible currency, rubles and RMB. In the twentieth century, China and Russia signed more than 100 different documents detailing economic relations. Dynamic cooperation has taken a successful line. The volume of bilateral trade with millions of indicators increased to 2500 million dollars. There was an increase in exports from Russia to China of ferrous and non-ferrous metals to 27%.As part of cross-border cooperation, in 1995 in the Primorsky Territory, out of 12,000 foreign workers, 8,000 were Chinese citizens.In 1998 - 2018, the Russian company Atomstroyexpert built four power units at the Tianwan NPP.Based on the above agreement, the Chinese Government allocated $45000000 to open stores in Moscow. In 1999, in Moscow, by decision of the State Council, a Chinese shopping complex was opened with a business center with a registered capital of $800000.

1.2 Research Background

Joseph Nye (2015)^[4] argued that in 1992, the two countries declared that they were pursuing a "constructive partnership"; in 1996, they progressed toward a "strategic partnership"; and in 2001, they signed a treaty of "friendship and partnership". Li Hui (2019) ^[5] argued that in May 2015, the leaders of China and Russia proclaimed a declaration about cooperation in linking the construction of the Belt and Road and the EAEU, which can be called the beginning of the conjunction of the Belt and Road projects with the EAEU. In May 2018, a contract on trade and economic cooperative work was signed between the EAEU and China. For more than three years, the first results in this area have been achieved. Good success has been achieved with Russia, collaborating on major projects in the field of energy, transport, aviation and astronautics. Sladkovskii (1966) ^{[6] [7]}depicted that the history of economic relations between Russia and China, stating the conclusion that the development ties between the Soviet Union (or Russia) and China are the logical outcome of a long-developing friendship between them. Petrovsky (2015) ^[8] highlighted that the depth of their economic cooperation was extremely low and there was an imbalance existing in the trade relation. Russia has a low proportion in China’s foreign trade turnover and, at the same time, Russian exports are mainly natural resources. The authors then made several suggestions in boosting cross-border and interregional trade. Li (2019) 3 argued that Russia has unique strength in technological innovation and has achieved significant innovations in many fields of science and technology. China and Russia have unique economic potential and have rich experience in cooperation in many fields. Strengthening collaboration, promoting mutual investment, actively implementing promising innovation projects, expanding direct links between the scientific, business and financial communities of the two countries is particularly important today. Li Hui (2019) 3 argued that “For seven years, the Belt and Road Initiative has been made on the principles of joint consultation, joint construction, fruit sharing, and during that time it created the path of common prosperity and development. She gave a new incentive to the progress of the global economics. One Belt and One Road Initiative includes an increasing amount of countries. Currently, 124 countries and 29 international organizations have signed cooperation agreements in joint implementation of the initiative with China”. Yang and Wang (2005) ^[9] used trade indicators to discuss the trade complementarity between China and Russia. By studying a series of indicators and trade models, such as revealed comparative advantage index, they found the trade between China and Russia had a strong complementarity and a tremendous promote in their economic tie could be expected.Maxim Oreshkin (2019) ^[10] argued that “Russia and China are now developing large projects in the energy sector, which will increase the volume of supplies in physical terms, but it is clear that other industries and other areas should make the main contribution”. For example, in agriculture, this is an increase in Russian exports of soy and grain. However, increasing exports will require the implementation of very large investment projects in agriculture, primarily in the Far East, as well as solving other, equally important problems: logistics, technology, seeds, etc. Kang, Wu, and Ning (2015) 7 used revealed comparative advantages, trade complementarity parameters, and trade intensity figures to analyze the trade complementarity between the two countries and discussed whether there was a big capability in the development of their trade. A gravity model was built, and results show that the economic ties between China and Russia are close and can be taken one step further. Zhang (2019) ^[11] applied theories of international trade to analyze the commodity framework of the trade between China and Russia, in order to forecast its future development. The author also advised the intra-industry trade should be developed, as the two countries have the relative strong foundation in manufacturing industry, and the household consumption in both countries is with a similar structure. Sidorenko (2013) ^[12] analyzed that bilateral trade relations and investment between Russia and China and drew a conclusion that the sectorial structure of the Sino-Russian trade situation was much more favorable for China than for Russia. The paper also paid a close attention the cooperation in energy and arms trade between China and Russia, stating not only the achievement but also obstacles in the development of trading in these areas. Maxim Oreshkin (2019) 8 argued that “Now we are discussing with China an increase in the number of regions from which Russian products can be delivered. But agriculture is not only grain. Now we are already actively building up cooperation in the field of poultry, beef and pork”. Putin (2016) ^[13] argued that “…colossal potential for business co-operation – a chance to catch the Chinese wind in the sails of our economy”. Luzyanin (2015) ^[14] had an expert monitoring on the trend of the Sino-Russian global and regional cooperation as well as trade and economic cooperation, before they reached a conclusion that current international, regional, and bilateral events had the impact on the partnership, and the key point of Sino-Russian relations should be a long-term and comprehensive collaboration with mutually benefit. Putin (2016) 11 praised that the development of the Russian-Chinese strategic partnership when he said: “The two states are building up political dialogue, mutually useful partnership in trade, economic, scientific, technical, humanitarian and other fields, as well as coordinating efforts to solve pressing regional and global problems". Pan and Yang (2006) 7 discussed that restriction factors of the economic and trade relation development, and drew a conclusion that the positive impetus from governments would become the key to accelerate the bilateral economic relation. Alexander Sharyshev (2016) ^[15] argued that the partnership between Russia and China, two global powers, is a promising alliance which shares the same interests, and is able to withstand global threats and shape the existing world order. This is the main reason to maintain and develop Sino-Russian relations further. Li and Liu (2004) 7 built time-series models in estimating the future development of trade relations between the two countries. Many studies also prove that there is a huge potential in developing Sino-Russian trade relations.

1.3 Research purpose and significance

The topic of trade and economic relations between China and Russia was not chosen by chance, since today it has a stable indicator of growth and positive changes developing in the conditions of strategic partnership.

The purpose of research - to analyze trade relationship among the two countries, the dynamics of their growth.

Achieving the goal is expected through the solution of such tasks:

-analyze the history of trade between China and Russia;

- identify and characterize the current state, the basic tendencies to the expansion of trade and economic partnership;

- to assess the economic importance of the partnership of China and Russia.

1.4 Layout of the thesis

This thesis consists of 5 chapters. Chapter 1 will have four part. We will introduce there the research focused on the evolution of economic relations between China and Russia, research Background, research purpose and significance and layout of the thesis. Chapter 2 will have an analysis of the current development status of the Sino-Russian Trade. This part will include three sections: dynamics of foreign trade of China and Russia in 2001-2010 and Shanghai Cooperation Organization; Globalization of trading and economic relationships between China and Russia from 2010 to present times. Development of cross-border cooperation. In chapter 3 Priority Areas of Bilateral Trade in 21st Century will be analyzed in three parts. The first part will describe multilateral format of international relations: The Belt and Road initiative. The second part is about scientific and technological and innovative partnership. The third part is electronic trade and the dynamics of electronic trade. In chapter 4 analysis of the difficulties in Sino-Russian Trade will be written. In the fifth part I will make a conclusion of my thesis.

Chapter 2 The Current Development Status of the Sino Russian Trade

2.1 Dynamics of foreign trade of China and Russia in 2001-2010. Shanghai Cooperation Organization

In the twenty first century, trade and economic relationship of two countries are regulated by the global legal norms of the World Trade Organization (WTO).

In 2001 ^[16], on the initiative of Jiang Zemin, Chairman of the PRC, an agreement was signed on good neighborliness, friendship and cooperation, as well as the creation of the Shanghai Cooperation Organization (SCO). The Shanghai Cooperation Organization is an international organization founded by the presidents of China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan, India and Pakistan ^[17]. The organization pursues many goals, including economic ones. Provided trade, economic and investment interaction. Improving the welfare and standard of living of the population. Since 2004 ^[18], the SCO has a budget. China and Russia consider for 24% in all. The Chinese side financed economic projects in the framework of the SCO through the provision of loans. In 2006, China allocated $900 million to the SCO member countries for the implementation of infrastructure and energy projects. Since the onset of the global crisis, China has increased the SCO's line of credit to $ 10 billion in loans.

Sino-Russian bilateral trade (in million dollars)

For the period 2001-2007 ^[19], in these six years since the signing of the Treaty, the volume of mutual trade has increased from 3000 to 48200 million dollars areas. During this period, China became the third trading partner of Russia, and Russia ranks seventh among the largest trading partners of China.

Sino-Russian trade total counts $21200 million in 2004.

In 2006, Sino-Russian bilateral trading reached to almost $34000 million.

The trade turnover between countries in 2007 rose, reaching $ 48160 million. The average increase of bilateral trade turnover at the end of 2007 and amounted to 44.3% 1. It was the highest figure since 1992.

In this regard, in 2007 ^[20], in terms of growth dynamics, Russia surpassed China's largest trading partners — the US and the EU, whose commodity growth with China was at the level of 27%. At the same time, the share of Russia in China's foreign trade grew to 2.2%.

The trade turnover between China and Russia in 2009 amounted to $ 38,796.72 million.

2.2 Globalization of trading and economic relationships between China and Russiа from 2010 to the present times

In trade with Russia since 2010, China ranks first. Russia ranks the seventh in the ranking of the major trading partners. In 2010 ^[21], the construction of a branch to the East Siberia - Pacific Ocean oil pipeline to China was completed.

The trade turnover between China and Russia in 2010 amounted to 55,448.79 million dollars.

In 2011, bilateral trade amounted to 79250 million dollars. This exceeds the figures of 2000 by more than 8 times.

In 2012, the year of Russian tourism in China passed (according to statistics from the Russian site), the number of Chinese tourists who visited Russia in 2012 increased by 47 % compared to previous years.

Russian President Vladimir Putin has proclaimed the “eastward turn” a priority of the foreign policy of the Russian Federation. Russia was the first country visited by the head of the Chinese Communist Party, Xi Jinping. Vice Premier of the Council of the PRC Wang Yang previously noted that this indicates that the new Chinese leadership attaches great importance to the development of relations with Russia.

Xi Jinping was one of the world leaders who visited Russia to participate in the celebration of the seventieth anniversary of Victory in the Great Patriotic War on May 9, 2015. "Under your leadership, China has made impressive progress. The Chinese economy is rising rapidly, the well-being of the nationals is growing. Plans for the long-term development of the country’s economy up to 2035 and up to 2050 are approved. Beijing’s credibility on the world stage is being strengthened," said in the Vladimir Putin’s telegram.

In 2016 ^{[22] [23]}, total turnover $69520 million. In 2017 ^[24], the trade turnover between Russian Federation and China of the year increased by 20.8% compared to 2016, amounting to $84070 million.

In 2018 trade between Russia and China exceeded $107000 million. In 2018 ^[25], the leaders of Russia and China, Vladimir Putin and Xi Jinping, signed documents on various activities. An important package of signed documents covered trade and investment. This is a memorandum of understanding, a program for the development of Russian-Chinese cooperation in trade, economic and investment spheres in the Far East for 2018-2024, a memorandum of understanding on the establishment of a Business Council for the Far East and the Baikal region of the Russian Federation and northeast China, a memorandum on mutual understanding on strengthening the Russian-Chinese regional industrial and investment cooperation in the Far East.

In 2019 it increased by 3.4%, up to $110750 million. The export volume in the Russian Federation over the corresponding period grew by 3.6% and amounted to about $49700 million. Imports from Russia to the People's Republic of China increased by 3.2% to $61050 million.

2.3 Development of cross-border cooperation

According to analysis from Chinese customs in 2005 ^[26], the volume of Sino-Russian cross-border trade amounted to $29000 million, or 136.7% compared to the previous year. At the same time, exports of Chinese territories bordering Russia increased to $12350 million, while imports to China grew to $16650 million.

China ranks fourth in the list of Russia's largest trading partners and first among trading partners in the Asia-Pacific region. In recent years, Russian and Chinese local authorities in the border areas have paid great attention and jointly taken measures to improve the conditions for cooperation.

These measures are aimed at the improvement of transport logistics in the border areas, provide the opening of new passenger and cargo routes between the border regions of Russia and China, which led to an increase in the operating time and throughput of border points on the Russian-Chinese border, the creation of border trade and economic complexes. The above-mentioned fact of ores contributes to the positive dynamics of inter-regional and cross-border cooperation. During the past twenty years, cross-border cooperation became one of the most effective forms of implementing trade and economic cooperation between neighboring states. Factors of stabilization of the situation on the border, the source of enhancing the living standards of the population in the border areas.

There is a positive trend in the expansion of inter-regional and cross-border co-operation in investment and energy fields and in the fields of science, technology, banking, etc.

According to Gao Feng, one of the important factors in the growth of bilateral trade was the expansion of cooperation in the agricultural sector: the export of Russian agricultural products to China over the 4 months of 2018 increased by 35.3% compared to the same period last year.

“Now we are discussing with China an increase in the number of regions where Russian products

can be delivered. Cooperation is increasing in the supply of grain, poultry, beef and pork” said

Maxim Oreshkin 8. The potential for the growth of relationship is in trading in services for

the time being about $4000 million.

Chapter 3 Priority Areas of Bilateral Trade in 21st Century

3.1. The Belt and Road Initiative

The Belt and Road Initiative was founded in 2010. The construction of the Belt and Road gives maintenance for the development of oil companies of both countries.

In April 2019 ^[27], the second forum for the implementation of One Belt, One Road Initiative was held.

Before and during the forum, agreements were reached 283 projects. Agreements worth $ 64 billion were concluded by the companies that took part in it.

The trade turnover of China and states along the Belt and Road was to $ 5 trillion. The volume of direct investment in foreign states achieved more than $ 70 billion ^[28]. This was told by Chairman of the People's Republic of China Xi Jinping during the forum.

Russian President Vladimir Putin praised the development of the Russian-Chinese strategic partnership, which is on the rise. “Two states are building up political dialogue, mutually useful partnership in trade, economic, scientific, technical, humanitarian and other fields, as well as coordinating efforts to solve pressing regional and global problems ...” The President of the Russian Federation also confirmed his readiness to continue close collaboration with the head People's Republic of China on the bilateral and international agenda.

On the eve of the forum, the Ambassador of the People's Republic of China, Li Hui 3, said that for almost 6 years the Belt and Road initiative was implemented on the principles of cooperative conference and constructing, and during this time it created a path of common prosperity and development. She gave a new incentive to the expansion of the world economics. The Belt and Road Initiative includes an increasing amount of states. Currently, 124 countries and 29 international organizations have signed cooperation agreements in joint implementation of the initiative with China.

3.2 Scientific, technological and innovative partnership between China and Russia

After the SCO summit in Bishkek in June 2019, the chairmanship of the Organization for 2019-2020 passed to the Russian Federation. On January 1, 2020, Russia also took over the chairmanship of the BRICS. Within the framework of the Russian Chairmanship, a large number of events are planned aimed at further developing cooperation in the fields of security, economy and cultural and humanitarian relations.

The years 2020–2021 have been declared by the heads of states as “Years of Chinese-Russian scientific, technical, and innovative cooperation.” This is a very timely solution during a period of global competition in the field of advanced technologies and developments.

“Russia and China are now developing large projects in the energy sector, which will increase the volume of supplies in physical terms, the main contribution should be made by other industries and other areas,” said Minister of Economic Development Maxim Oreshkin.

According to the Director General of the Russian Direct Investment Fund, Kirill Dmitriev, the Russian-Chinese Investment Fund, together with a Chinese partner, will establish an investment fund worth $1 billion. The investments of the created fund will go to such sectors as transport, tourism and infrastructure.

According to the official representative of the Ministry of Commerce of the People's Republic of China, Gao Feng ^[29], growth in market demand increased the export volumes of both countries: in 2019 January-April, Chinese exports to Russia increased by 21.1% and amounted to $72400 million, and imports from Russia - by 38, 3%, up to $38300 million.

The volume of bilateral cooperation has also increased in other areas: in the field of investment, in the aerospace field, as well as in the construction and construction of infrastructure.

For example, a package of documents in the field of industry. This is an agreement between Kamaz Corporation and Weichai Power Motor Corporation. On the rights of participants in the KAMAZ-Weichai joint society.

A Memorandum of Understanding was concluded between the Biocad pharmaceutiсаl company and Shanghai Pharmaceuticals on the production and distribution of medicines. Pharmaceutical company "Biocad", which produces drugs for the treatment of cancer, autoimmune, infectious and viral diseases in factories in St. Petersburg and Moscow region. The company plans to organize the production of drugs in China. Joint ventures will be the first large-scale Russian-Chinese project in the pharmaceutical industry.

China is the second biggest pharmaceutiсаl market in the world with a volume of $ 165 billion, while the share of foreign suppliers in the country's market is less than 25%. Biocad operates in China through a partnership agreement with Shanghai Pharmaceutiсаl. Two joint ventures have been created to produce and bring to the PRC market at least 6 drugs that are already available on the Russian market today.

3.3. Electronic Turnover and the Dynamics of Electronic Turnover

Online trading platforms of the last ten years represent a wide range of products for all areas of life. The demand for e-commerce is growing every year.

Currently, many similar platforms have been created within each country. For a long time, business representatives, as well as ordinary citizens of Russia, have been customers of Alibaba Group. For the convenience and acceleration of electronic trade in the framework of international cooperation, in 2019, a joint venture “AliExpress Russia” was created. The largest Russian Internet company, Mail.ru, and the Russian mobile operator MegaFon, have become partners with the Chinese company Alibaba Group.

“Alibaba Group” to the Russian sovereign investment fund RDIF invest one hundred million dollars. Large investments indicate the confidence of the Chinese company in the Russian market.

According to experts, e-commerce is a new pillar for trade between the two countries. “This indicates that partnership between the states in the area of e-commerce has achieved another level - a transition has been made from conducting our own business to working together and creating an e-commerce giant that will dominate Russian-speaking markets,” the Global Times said in an interview Lu Zhenhong is an independent trade analyst in China^[30].

The market for international services, in particular cargo transportation is also being improved. This development has a place in parallel with the development of electronic trade.

Creating a single e-commerce space is a hot topic in the global economy of the two countries. The system of settlements of foreign economic activity for the payment of goods and services requires conditions for the free movement of national currencies of both countries. In this direction, support is needed for small and medium-sized businesses, the creation of conditions for them to quickly access electronic commerce and electronic payment.

Chapter 4 Analysis of the Difficulties in Sino-Russian Trade

Trading and economic partnership of China and Russia, despite the intensity and progress, have a number of problems.

More often problems were because of territorial divisions. This problem has been relevant since the 18th century. Often, two parties had conflicts for resources in the border areas. The usage of railways, water resources, often caused conflicts. These have led to the crisis of trade and economic relationships between these countries.

Certain difficulties are caused because of the geographical location of the two countries ^[31] . The border territories of China and Russia works as closely as possible. However, these territories are not the most developed in the two countries. In Russia, the most developed economic centers are concentrated in the European part, not in the east. In China, the most developed part is in the south-east, which is remote from Russia. According to the Ministry of Economy of Russia ^[32], in Russia, currently from overall trade costs transport costs amount about 15-20%. But in economically developed countries it is only 7-8%.

Equally important is the fact that the same product produced by these countries will have different prices. For China, with a mild climate, well-established processing industry, this is easier to do. Accordingly, the price of goods will be lower and volumes will be higher. For Russia with a cold climate and a weak processing industry, it is difficult to produce large volumes and put low prices on goods. Accordingly, China produces more goods and at a lower price. And this leads to the demand in buying more from China.

Currently, the global economic crisis is a big problem for the whole world, including China and Russia. This weakens the economic performance of Russia especially. This also affects the Chinese economy. Together, this leads to the decline in trade between these countries.

So, in 2015 ^[33], according to Chinese customs analysis, there has been a reduction in foreign trade between two countries. In 2015, trade turnover fell to $68000 million. Including Russian exports to China - up to $33263.76 million (-20%), imports from China - up to $34801.39 million (-35%).

Among the above reasons for the decline in trade, experts note the growing geopolitical tension of Russia with some countries. In this case, the sanctions of the USA and the European Union countries lead to the decrease in Russia's economic growth. Here weakening of foreign economic activity of Russia, affects the trade with China. China has active trade relations with the USA, Australia, Germany and other countries ^[34]. China’s trade with Russia is in 16th place. In 2015, two countries’ trade turnover decreased.

China's trade turnover with the world in 2015

Russia’s trade turnover with the world in 2015

Experts note that Russia is dominated to export raw materials. The export of China is dominated by already processed products. China has developed manufacturing. Raw materials are purchased at prices much lower than processed goods.

This situation is the outcome of different approaches in the economy of the two countries. China has embarked on the development of innovation, high-tech production. In Russia, the export of natural resources continues to prevail.

Another branch of the economy is not equal for both countries. Investment cooperation has different figures. Russian investment in the Chinese economy is very low. Chinese investment in the Russian economy exceeds seven times Russia's investment in China.

In 2020, a decrease in trade between China and Russia was noted. This is certainly connected with the state of self-isolation of countries. Coronovirus has become this cause. On average, two countries lose between 1 and 2 million dollars a day. In February 2020, Russian Finance Minister Anton Siluanov said that due to the coronovirus, Russia daily loses 1 billion rubles. First of all, due to a decrease in trade with China.

So, among the main problems of the Sino-Russian economy, we highlight the following:

-different structure of exports and imports;

-various degree of interest in China and Russia in cooperation;

-predominance of Chinese investment in the Russian economy;

-unresolved foreign policy disagreements;

-significant geographic remoteness of the economically advanced areas of both countries;

-the difference in climatic conditions is the reason for the difference in prices of goods and volumes of goods.

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