June 20, 2023
ST PETERSBURG – Russia and China are not just neighbors but also maintain very good relations, and the two countries have made progress in using the renminbi in bilateral trade, Russia’s President Vladimir Putin has said.
He made the remark on Friday in an address to the St. Petersburg International Economic Forum. Russia had made “tangible progress” in using national currencies in foreign trade, he said, and more than 80 percent of its transactions with China are in the rouble or the yuan. “We have good — not just neighborly — but really good relations with China.”
Russia has successful e-platforms, and “we will support them in entering large markets like China”, Putin said.
Ozon, one of the biggest online retail platforms in Russia, says it plans to enhance its collaboration with partners in China, Anastasia Fomicheva, head of external communications for Ozon, told China Daily in Moscow.
To improve delivery, Ozon Global plans to open a new warehouse center in Dongguan, Guangdong province, in the third quarter of this year in conjunction with JD Logistics. This would help halve delivery times to Russia, to 10 to 14 days, she said.
Supported by a favorable policy environment, China-Russia e-commerce will experience rapid growth from now until 2030, Fomicheva said. Chinese-made goods are in high demand among Russians, and this opens a golden window for Chinese companies and entrepreneurs to enter the Russian market, she said.
Chinese goods account for about 95 percent of Ozon Global’s total order volume, making China one of the main directions of Ozon Global’s international business. In November Ozon Global opened a representative office in Shenzhen to expand collaboration with local sellers and increase its volume in cross-border trade with Russia.
Vitaly Sergeychuk, head of the VTB Corporate and Investment Division, said more companies are shifting to yuan settlements because greater use of the renminbi worldwide is backed by China’s economic potential and consistent policies.
“We are witnessing the de-dollarization process worldwide, while the hegemony of one currency does not reflect the global economic power balance and the role of the US dollar is gradually weakening.”
Between 2000 and 2023 the G7’s share of global output fell from 44 percent to 30 percent, while that of China rose from 7 percent to 19 percent, Sergeychuk said. “China is now an economic superpower.”
Trade between Russia and China reached record levels last year and looks likely to rise further this year, he said. In the fields of energy, agriculture, chemistry and tourism people could see the largest expansion of collaboration between Russia and China, he said.
People exchanges are also important, and following the pandemic, Russia welcomes Chinese students and tourists, he said.
“Increased collaboration in all these venues and mutual interest between businesses and people create a solid ground for boosting dynamic growth of trade turnover of the two countries.”