Border Trade between Regions of Russia and Provinces of China

Abstract

The purpose of this article is to study border trade in the regions of Russia and the provinces of China. It is shown that in recent years there have been negative trends in border trade, leading to its reduction. Therefore, Russian regions bordering with China should transform into separate objects of regional policy, while also forming a legislative framework for border interaction in all its main spheres: trade, humanitarian cooperation, science and education, and others. In border cooperation with China, special emphasis should be placed on cooperation in the innovation sphere, as well as on improving the quality of exported goods and services and promoting infrastructure projects. Border trade between the regions of Russia and China is built mainly on trade and export of labour resources from China to Russia, as well as China’s receipt of additional sales channels for the confidently growing sales markets for consumer goods and sources of raw materials and primary products. The interaction of Russian regions with neighbouring provinces on the border with China not only preserves the raw material orientation of these regions, but also hinders the development and strengthening of the manufacturing industry in the structure of their regional economies, since border interaction for Russian regions immobilizes those stages of value-added production observed in the very first stages. In general, for the Chinese provinces there is a similar problem associated with such exports to border regions that have common borders with Russia, which does not contribute to the diversification and structural development of the regional economies of the Chinese provinces. That is why building an effective mechanism for border interaction between Russia and China is a strategically important issue for both countries.