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Heilongjiang plans revitalized trade with Russia

By Tian Xuefei (China Daily)
Updated: 2011-06-01 10:56
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 Heilongjiang plans revitalized trade with Russia

Heihe, a port city across the the Heilong River from Blagoveshchens, is a hub for China-Russia trade.

Province was surpassed in 2010 as exports to neighboring nation fell

After registering a decrease in trade with Russia over the past three years, the provincial government of Heilongjiang recently proposed plans to revitalize the sector by improving the structure, scale and efficiency of its cross-border commerce.

Heilongjiang, the traditional leader in Sino-Russian trade, had record exports and imports with the neighboring country in 2008, when the value reached $11.08 billion. But last year, the volume fell to $7.47 billion, lagging behind Zhejiang and Guangdong provinces for the first time.

The financial crisis that began in the second half of 2008 was partly to blame, but outdated methods and the existing import-export structure are also cited as reasons for the drop.

In response, the provincial government is looking for new international trade resources and more innovative methods.

Heilongjiang now has 1,280 privately owned companies that comprise province's main force in trade with Russia. The sector was before dominated by State-owned enterprises.

According to the provincial foreign trade bureau, Heilongjiang's exports of construction machinery, farming equipment, electric appliances and automobiles have grown steadily, but authorities now look for increased shipments of farm produce, textiles and many light industrial products to Russia.

It also plans to increase imports of energy and raw materials, such as timber, paper pulp, petroleum, fertilizers and electricity to ensure adequate supplies for local economic development.

In the past five years, the province imported 15 million tons of crude oil and petroleum products, 7.7 million tons of iron ore, more than 40 million cubic meters of timber and 4.27 billion kilowatt-hours of electricity from Russia.

"To improve the trade quality, we plan to expand trade with Russia to many fields and a higher level," the provincial foreign trade bureau said.

More comprehensive

Both provincial and local governments have developed programs for more comprehensive cross-border trade and cooperation, including construction of more trade and development zones, logistics parks and wholesale markets in border towns on both sides.

Another significant step to boost business cooperation was the establishment of a Heilongjiang-Russia electric power organization in January, 2010, with 44 members from both sides.

The next step in the province's plan is more partnerships with Russia for petroleum, natural gas, wood, mineral resources and infrastructure.

The foreign trade bureau is also looking at greater trade and business cooperation with Russia through various shows and events.

In addition to the annual Harbin International Economic and Trade Fair - China's largest Sino-Russian business cooperation show - the bureau plans to arrange local businesses to participate in commodity exhibitions and trade fairs in Russian cities including Vladivostok, Blagoveshchens, or even Moscow.

The provincial government has ambitious goals for the future.

It wants to turn the province into a Russia-oriented distribution center - with border cities such as Suifenhe, Tongjiang, and Heihe as regional hubs - with its influence reaching across the nation and even to the rest of Asia and Europe.

To date, Heilongjiang has established trade links with 225 countries.

(China Daily 06/01/2011 page30)

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