Eastern perspectives: Will China fulfill import substitution needs in Russia's industry
How the trade turnover between the countries has grown and what awaits us at the China Machinery Fair 2023
Related issues will definitely be discussed at the National Exhibition of Industrial Equipment and Innovations China Machinery Fair 2023, which will be held from October 30 to November 1, 2023 at IEC Expocentre in Moscow, bringing together more than 200 suppliers and manufacturers of industrial goods and equipment.
Official sources report that over the past six months, trade turnover (exports and imports) Russia and China grew by 40.6% compared to the same period last year
However, in 2021-2022, the trade turnover between the countries reached record levels. In 2023 Russia is forced to look for new partners and alternatives to familiar products from Chinese partners, analysts predict that the trade turnover will again show growth.
"China was Russia's main trading partner until 2022. But after the start of the special military operation, China's role in export-import supplies has grown significantly. By the end of 2022, the trade turnover between the two countries increased by 28% and reached a record $ 190 billion." - Petr Hachaturyan, member of the Russian organizing committee of Chinese national exhibitions.
"China was Russia's main trading partner until 2022. But after the start of the special military operation, China's role in export-import supplies has grown significantly. By the end of 2022, the trade turnover between the two countries increased by 28% and reached a record $ 190 billion." - Petr Hachaturyan, member of the Russian organizing committee of Chinese national exhibitions.
For more than 10 years in a row, China has remained the largest business partner for Russia. And the active participation of its representatives in major exhibitions, such as China Machinery Fair, allows Russian industry experts to expand their knowledge and exchange experience in a variety of niche areas – from technological production to logistics services.
About the participants
Confirmed participants of China Machinery Fair demonstrait the variety of their products. This is evidence of the importance and demand for Chinese equipment for a whole range of industries in our industry.
Thus, the share of business in the field of construction machinery and vehicles accounts for about 15% of the total number of exhibitors. Their main product lines are trucks, lifting platforms, excavators, road rollers, equipment for concrete mixing plants, as well as spare parts for construction machinery, commercial and passenger cars (tires, engine, brakes, oils, accessories, etc.).
Approximately 15%- 20% of the total number of exhibitors are packaging business representatives. They will demonstrate the products produced on their equipment in order to present the standards and quality
Approximately 15%- 20% of the total number of exhibitors are packaging business representatives. They will demonstrate the products produced on their equipment in order to present the standards and quality
A huge segment of exhibitors, about 20%, is represented by Chinese manufacturers, distributors and suppliers of pumps, valves and pipe fittings.
Moreover, an impressive part of this section is devoted to industrial valves, ball valves, check valves, throttle valves, etc. The main application of them is oil and gas production. Also sanitary valves (for water supply and beverage production) will be presented. It should be noted that many of the exhibitors in this section are newcomers to the Russian market.
Moreover, an impressive part of this section is devoted to industrial valves, ball valves, check valves, throttle valves, etc. The main application of them is oil and gas production. Also sanitary valves (for water supply and beverage production) will be presented. It should be noted that many of the exhibitors in this section are newcomers to the Russian market.
Up to 20% of the exhibition space are occupied by participants from the field of electricity. They present technological solutions designed for power plants, oil fields, electric power projects, engineering and industrial plants (generators, electric motors, industrial boilers, electrical equipment, low-voltage equipment, etc.). Also manufacturers of bearings and conveyor belts will be represented.
Shares in the exhibition space were distributed by 6% for manufacturers of equipment and construction materials (metal materials, construction materials and a small part of equipment and tools) and agricultural machinery (intelligent as well as for agricultural machines – for example, milling equipment, etc.). Up to 5% of the space will be occupied by machines for metal and wood processing, which are in demand in a variety of industries such as oil production, automobile and shipbuilding, production of railways, etc.
About the forecast
Speaking about the prospects of import substitution, experts emphasize that the Russian market remains competitive. Companies from all over the world have the opportunity to successfully operate on it.
But at the same time, Eastern companies demonstrate rapid growth and a significant presence in the Russian market. The activity of Chinese colleagues within the framework of The China Machinery Fair is a vivid confirmation of this.
But at the same time, Eastern companies demonstrate rapid growth and a significant presence in the Russian market. The activity of Chinese colleagues within the framework of The China Machinery Fair is a vivid confirmation of this.
"In the Russian market, there is an expansion of the presence of already established Asian brands, as well as the creation of new companies specifically focused on the Russian market. This is due to restrictions and sanctions that encourage Asian companies to adapt to new conditions and find ways to maintain their activities in the Russian market. The creation of new companies allows us to take into account the specific needs and requirements of Russian consumers, as well as to circumvent sanctions restrictions and develop our business in a volatile market," emphasizes Pavel Varfolameev, Head of SCS Logistic, participant of the national exhibition China Machinery Fair-2023.
Organizers
The organizers of the China Machinery Fair are:
• China Chamber of Commerce for the Import and Export of Machinery and Electronic Products;
• Department of Commerce of Shandong Province;
• Municipal People's Government of Wenzhou;
• Committee of the China Council for the Promotion of International Trade of Jiangsu Province;
• Committee of the Chinese Council for the Development of International Trade of Sichuan Province.
The exclusive operator is the leading Russian exhibition company Gefera Media (formerly Messe Frankfurt RUS).
The exhibition is also held with official support:
• Chamber of Commerce and Industry of the Russian Federation;
• IEC Expocentre;
• The National Coordination Center for the Development of Economic Relations with the countries of the Asia-Pacific region.
• Department of Commerce of Shandong Province;
• Municipal People's Government of Wenzhou;
• Committee of the China Council for the Promotion of International Trade of Jiangsu Province;
• Committee of the Chinese Council for the Development of International Trade of Sichuan Province.
The exclusive operator is the leading Russian exhibition company Gefera Media (formerly Messe Frankfurt RUS).
The exhibition is also held with official support:
• Chamber of Commerce and Industry of the Russian Federation;
• IEC Expocentre;
• The National Coordination Center for the Development of Economic Relations with the countries of the Asia-Pacific region.