Financial Crisis Likely to Further Hamper Russian-Chinese Trade

    Russia's exports to China have been hampered by the sharp decline in the price oil, nonferrous metal, fertilizer and wood. These products comprise the staple of Russian exports to China, he explained.

    Trade between the two countries was valued at 56.8 billion U.S. dollars last year, up 18 percent year-on-year. It was sharply down from 44.3 percent of growth rate in 2007, he cited data from the General Administration of Customs.

    He saw the first half of this year difficult for the bilateral trade and expected a rebound in the second half.

    "If Russian-Chinese trade could record growth at 8 or 10 percent this year, that would be very impressive."

    He said a target of 60 to 80 billion dollars of bilateral trade in 2010 could be achieved.

    Tsyplakov also said economic slowdown in Russia would reduce the Russian people's income and weaken demand for products from China. China's export of garment, shoes and hats to Russia would remain stable but a sharp decrease would be seen in export growth of machinery products from China.

    The avoidance of trade protectionism would be significant to the steady development of bilateral trade. Enterprises from the two countries would seek to promote trade, he said, noting the Russian government would continue supporting Russian export enterprises by lowering export tax.

    Russia's gross domestic product (GDP) grew only 5.6 percent year-on-year in 2008 because of the financial crisis and drastic decline in income from oil exports. The growth rate was 2.5 percentage points lower than a year-earlier level.

    Its GDP growth would be close to zero or below zero this year, said Russian deputy Prime Minister Igor Shuvalov.