RASPP: China is interested in barter trade with Russia and has relevant experience
China is interested in barter trade with Russia and has relevant experience, writes the Telegram channel of the Russian-Asian Union of Industrialists and Entrepreneurs.
Last week, it was reported that Russia and China could begin using barter schemes in trade. At the same time, two deals related to agriculture are expected this fall. The export of metals from Russia in exchange for equipment from China is also being discussed.
«Whether barter will become an important part of Russian-Chinese trade is an open question, but it can already be said that such deals will be very complicated. In general, barter deals between Moscow and Beijing took place during the existence of the USSR and continued in the 1990s,» the article says.
It is noted that in China, in general, there is a positive attitude towards barter trade in its modern form, that is, when trade is not limited to simple barter exchange, but is carried out through professional barter platforms and systems, and includes, among other things, the exchange of goods and services.
“It is common practice for Chinese companies to exchange surplus products through barter platforms, thereby reducing storage and logistics costs,” writes the Russian Association of Industrialists and Entrepreneurs.
It is also noted that recently several safe and efficient barter trading platforms have been created in China — for example, there is a large barter platform in Shenzhen. In May, the First China Barter Conference and the 2024 China International Conference on Barter Trade Promotion were held in Guangzhou. In addition, barter trade in China is moving into the digital space, especially in the area of payments. China does not hide its ambitions to become the leader of international digital barter service platforms. The main centers of China's barter trade are Hainan, Shandong and Hunan provinces.
Currently, China trades by barter mainly with countries and regions such as Iran, Africa and Southeast Asia. China mainly exports cars and spare parts, building materials, household appliances, and essential goods, while mainly imports agricultural products, mineral resources, etc. In 2022, China's barter trade volume amounted to 2.316 billion yuan, an increase of 30% year-on-year.
«That is, China is interested in promoting barter trade and has some experience in it. How far Russia and China will advance in barter trade matters — we will see,» the RASPP material says.