Trade turnover between Russia and China in 2024 is predicted to reach $300 billion

Such forecast was announced at the Chinese national exhibitions China Machinery Fair 2023 and International / China Commodity Fair 2023 in Moscow.
The achievability of this goal is confirmed by the size of expositions, the activity of the exhibitors and the tone of the dialogue between representatives of China and Russia within the business program of trade fairs which were held on October 30 – November 1, 2023 at the IEC Expocentre in Moscow
This year, around 14,000 people in total visited the shows (9,413 of whom came to International / China Commodity Fair and 4,578 to China Machinery Fair). It is also important to note that interest and attendance at both events remained at the high level during all 3 days of the shows.

Automotive and agro-industrial industries are priority sectors for cooperation

Russia has become the largest export market of the Chinese automobile industry while domestic agricultural products are a priority in the development of international trade. This was stated by Sergei Krasilnikov, Vice President - Managing Director of the Department of International Bilateral Cooperation of the RSPP. He also noted that Russian industrialists are currently concerned with the need to conclude a full-fledged trade agreement, which for a number of reasons still does not exist between Russia and China. "Such an agreement will take cooperation to a new qualitative level, including economic and political," the expert is confident.
    The second issue also important to solve quickly, according to Sergei Krasilnikov, is logistics. "Half of the checkpoints are still closed. Predicting an increase in the number of cargoes both in weight and in cost in the near future, it is now time for us to think about how to improve the logistics of mutual trade. And during the exhibition we managed to discuss all these issues," said the vice-president of the RSPP.

    The enormous potential for the development of economic ties between our countries was emphasized in the speech of the Chairman of the Union of Chinese Entrepreneurs in Russia, Zhou Liqun. The distinguished guest recalled that in March 2023 a road map for the development of Russian-Chinese relations was created. And over the past three quarters, bilateral trade turnover exceeded $186 billion increased by 30%. And in the field of mechanical engineering, over 9 months the figure increased by 86% and the sale of heavy equipment rose by 112%.

    Open dialogue with business and search for opportunities

    This year, for the first time since the pandemic, Chinese delegates personally took part in discussions on the development of the agricultural, oil and gas industries, metalworking and equipment markets onsite. For three days, workshops and expert discussions were held as part of the China Machinery Fair.

    Among the topics were innovations in agriculture industry and effective environmental protection, cooperation in production, research and development, as well as cooperation with cars manufacturers from China.
    The core of majority of speeches was the idea of finding new opportunities for interaction in strategically important areas of industry. Market analysts, representatives of specialized associations, business and government agencies discussed how to build effective trade and industrial cooperation between Russian regions and the provinces of China.
    In particular, the Chairman of the Russian-Chinese Guild of Commerce Pavel Kiparisov, the Head of the Trade and Economic Representation of Jiangsu Province of the People's Republic of China in the Russian Federation and the CIS Jia Yinke, and the representative of the People's Government of Henan Province in the Russian Federation An Songlin spoke about the most successful cases of economic, trade and industrial cooperation between Russia and China. Current industry analytics were presented by the Chairman of the Expert Council of the Russian-Chinese Chamber and the head of the Eurasian High Technology Center Vladimir Remyga.

    All participants agreed on the need to quickly build supply chains for mechanical engineering and aviation products, focused not only on Russian and Chinese partners, but also on entrepreneurs around the world.

    Change of leaders and consumer priorities

    It is obvious that Chinese brands are becoming even more recognizable on the Russian market. This is evidenced by the increase in trade turnover of electronic and other consumer goods: this year, Chinese products took first place in popularity among Russians. In particular, the share of purchases of household appliances and electronics from Chinese brands increased by 43%.

    For example, Chinese brand Haier has become the leader in the TV category instead of South Korean Samsung, which held the top position for almost ten years. "Manufacturing giants from Jiangsu, Guangdong, Shandong and Zhejiang have advanced technologies and demonstrate a high technical level," commented Shi Yonghong, Deputy Chairman of the China Section of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME).
    By the way, executives and managers of large Chinese enterprises participated the VIP tour where they met the key exhibitors and observed a wide range of consumer goods: from ceramic tableware and perfume to smart household appliances, presented by 400 companies from China and Russia.

    One of the most impressive exhibits was robot dog by Dreame Innovation Technology (Suzhou) – an innovative gadget that imitates a pet. The sensor module allows the robot to navigate in real time, and the Dreame AI Sage computing power engine allows accurately detect surrounding objects and plan a safe route. Thanks to the built-in emotional system, DreameDog, as its developers assure, is able to use vision and hearing, understand human emotions and express their own, almost like a real pet.

    The ambitious forecasts announced

    "The variety of goods presented at exhibitions and the willingness of exhibitors to engage in dialogue are the key to the growth of trade turnover between China and Russia," - the President of Business Russia Boris Titov said.

    Also, for the first time in the project history the largest marketplace in Russia, Wildberries, took part. So, ICF and CCF visitors had such a unique opportunity to learn all the nuances of doing business at this online marketplace right from Wildberries representatives.

    Those who are interested in developing their business at marketplaces could also visit fringe program events, including forum, conferences, real time shows and discussions about analytics, trends in promotion, increasing sales and new marketing tools.
    "This year we brought over 300 Chinese companies. And we hope each exhibitor – both from Russia and China – will meet their consumer and partner," commented Sergei Gorsky, CEO of Gefera Media.

    It is expected that in the near future Russian-Chinese ties will strengthen and contribute to the prosperity of both countries. In addition, business representatives from Russia and China agreed that bilateral trade turnover next year should amount to $300 billion. And China Machinery Fair and International / China Commodity Fair are intended to make their contribution to the development of Russian-Chinese business cooperation.