According to a report that was released by Bloomberg on Thursday, there has been an increase in the volume of trade that takes place between Russia and China. One piece of evidence that supports this claim is the accumulation of shipping containers that are stuffed to the brim with items that originate in China in Russian train terminals. The fact that the article was published on Thursday provides evidence of this assertion.
According to the story, which cited a study conducted by Container xChange, a trading website based in Hamburg, Germany, there are currently over 150,000 excess containers built up as a result of China providing so many goods that Russia is unable to manage the glut of shipping boxes. The study was carried out as a result of China sending so many things that Russia was unable to manage the surplus of shipping boxes. This is because Russia is unable to meet the high demand for shipping containers at the current time.
“There is significant cargo movement from China into Russia but very scarce movement back to China from Russia,” Christian Roeloffs, co-founder and CEO of Container xChange, claimed in the report. Roeloffs was responsible for the company’s initial funding and serves as its current CEO. The initial finance for the company came from Roeloffs, who also acts as the company’s CEO at the present time. In the report, Roeloffs is paraphrased saying that, and the report includes that citation. As was said in the previous sentence, this has a “hugely detrimental impact on the business of container logistics due to the high imbalance of demand and supply,” which is a direct result of the significant difference that exists between supply and demand.
Statistics that were published earlier this month by the Kiel Institute for the World Economy in Germany revealed that for the first time since last year, the number of commodities unloaded at Russia’s three main container ports was reaching levels that were observed at the beginning of the crisis in Ukraine in February 2022. These levels were observed at the beginning of the crisis in Ukraine in February 2022. The German government has made these statistics public. In the first phases of the crisis in Ukraine, levels comparable to these were observed. The cities of St. Petersburg, which is located on the Baltic Sea, Novorossiysk, which is located on the Black Sea, and Vladivostok, which is located on the Pacific coast, are the three most important ports in the country.
In spite of Western sanctions that severed Russia’s historic economic links and disrupted its traditional supply chains, Russia’s container traffic has been on the upswing recently. This is despite the fact that these sanctions exist. This is in spite of the fact that these sanctions have been put into place. As a direct result of this, Moscow has been investigating potential opportunities in several markets.
READ FURTHER: A think tank based in Germany asserts that Russia is “rejoining” the global trading economy. READ MORE.
Russia Can’t Keep Up
During this time period, the Union of Chinese Entrepreneurs and the Jilin Northeast Asia Railway Group inked contracts with the Fesco Transport Group, which is one of the most important logistics providers in Russia. These contracts were signed by the Fesco Transport Group. In accordance with the contents of a statement that was distributed by Fesco, “the parties plan to monitor existing container-shipping routes between Russia and China and jointly expand the pool of potential shippers in the China-Russia-China direction,”
According to information that was supplied by Chinese customs, the amount of money that was exchanged in commerce between China and Russia has skyrocketed over the course of the previous year, rocketing by 37% in the first seven months of 2023 to reach 134.1 billion dollars. This figure was determined by comparing the total amount of money that was traded in 2022 to the total amount of money that was traded in 2023. The initial report of this number came from the Chinese customs authority. The overall value of China’s exports to Russia increased by 73% to roughly $62.54 billion, while the value of China’s imports from Russia increased by 15% to reach $71.6 billion. China’s exports to Russia now amount around $62.54 billion. The current value of China’s exports to Russia is approximately $62.54 billion.
The government of Russia anticipates that the volume of trade conducted with China would significantly exceed the current record of $190 billion, which was established in 2022. It is anticipated that this accomplishment will take place in the current year. If the new standard were met, it would indicate that the aggregate value of all commercial activity was greater than $200 billion.
Russia and China Imports
Russia is a big importer of a wide range of goods, primarily as a result of the size and variety of its economy. The following are some of the most common types of goods that are imported into Russia:
This category includes motor vehicles in addition to other types of machinery and electrical equipment. Russia is a significant global importer of a wide variety of consumer and industrial electronics and machinery.
Mineral Fuels and Oils: Despite the fact that it is one of the largest producers of oil and gas in the world, Russia is a net importer of petroleum products.
Food items such as cereals, meat, dairy products, and fruits are among the types of foods that Russia imports, particularly during times of domestic food shortages or when consumers desire particular types of products.
Pharmaceuticals: Both pharmaceuticals and medical equipment are brought into the country in order to meet the demands placed on the nation’s healthcare system.
Chemicals and chemical products include a wide range of chemical substances that are put to use in a number of different types of businesses.
The majority of Russia’s metal consumption comes from imported steel, metal ores, and other metal products.
Textiles and apparel: In order to satisfy domestic demand for textiles, clothes, and footwear, Russia is forced to rely on imports of these goods.
What Countries Export to China:
Because of the magnitude of its domestic industrial sector and consumer market, China is consistently ranked among the top importers in the world. The following are some of the most common types of goods imported into China:
China is a significant importer of a diverse range of machinery and equipment, which includes production gear, computer equipment, and telecommunications equipment.
In order to support its rapidly growing economy, China is a large purchaser of imported crude oil as well as natural gas.
In order to support its building and manufacturing industries, China imports a variety of metals, including iron ore, copper, and aluminum, amongst others.
In order to meet the requirements of its massive population as well as the demands of its livestock sector, China is a major importer of agricultural goods such as soya beans, wheat, and beef.
China is a major global importer of electronic components and gadgets, supplying the industrial sector as well as individual consumers with these goods.
Chemicals that are brought in from other countries are put to use in production, agriculture, and a number of other fields.
Automobiles and various other kinds of transportation equipment are brought into China from other countries.
Despite being a big supplier of textiles and clothing, China is a significant buyer of high-quality textiles and fashion products from other countries.
Please keep in mind that the particular composition of Russia’s and China’s imports might alter as a result of changes in economic conditions, trade regulations, and the dynamics of the global market. This is something that you should keep in mind while doing business in either country. It is recommended that official government publications and databases on international commerce be consulted in order to obtain the most up-to-date and comprehensive information possible regarding imports for these countries.