Prospects of increasing russian cash agricultural trade flows to china

Issue № 8, 2020, article № 9, pages 96-103

Section: ABROAD

Language: Russian

Original language title: ПЕРСПЕКТИВЫ УВЕЛИЧЕНИЯ РОССИЙСКИХ ДЕНЕЖНЫХ СЕЛЬСКОХОЗЯЙСТВЕННЫХ ТОРГОВЫХ ПОТОКОВ В КИТАЙ

Keywords: TRADE, CASH FLOWS, AGRICULTURE, TRADE POLICY, CHINESE ECONOMY, UNCERTAINTY

Abstract: The presented research assesses the opportunities and prospects for increasing Russian agricultural exports to China. Over the past few years, trade cooperation between Russia and China has significantly intensified, especially in the field of agricultural products. According to the Russian Trade representative office in China, exports of agricultural products and food products in the first quarter of 2020 reached a value of 1071.1 million dollars and became the second largest after exports of mineral fuel, oil and petroleum products. Due to its high population, China is a promising market for Russian agricultural products and food products. At the same time, there are a number of institutional barriers, as well as independent factors, such as the COVID-19 pandemic, that can have a significant impact on this process. The study assesses the demand for agricultural products using econometric analysis. The analysis shows that in 2020, it is possible to expect a decrease in the volume of exports of processed food and agricultural products from Russia to China, which is probably the result of the impact of the COVID-19 pandemic. However, the previous positive dynamics demonstrates the possibility to increase the volume of exported Russian products in the future. To do this, government agencies must implement a policy to optimize logistics interaction and provide the necessary funds. A significant limitation is the lack of awareness of Russian agricultural producers about the procedures for exporting products to China. The solution to this problem is possible through the use of resources of the Russian Trade representative office in China. Ultimately, it is necessary to consider the possibility of creating a specialized Russian retail network in China.

Authors: Larionov Aleksandr Vitalevich, TSzin zhusiui