Sino-Russian Bilateral Trade Settlement Helps Footwear Trade Development

According to media reports, since yesterday, China and Russia will realize bilateral trade settlements in their own currencies. It can be said that with the realisation of the settlement of domestic currencies in the Sino-Russian trade, the potential of Russia’s emerging market will also be further tapped. Quanzhou companies are in the Russian market. The trade and investment will be more convenient.

It is understood that from the current bilateral trade between China and Russia, although the demand for RMB and ruble transactions is not as large as the exchange rate between the US dollar and the ruble, the liquidity and volatility will be relatively small. "Because of the increasingly close trade between the two countries, many of China's resource-based products are imported from Russia, and many of Russia’s daily necessities, small commodities, etc. are imported from China. Therefore, it is not only Chinese companies that have demand for rubles. Russia The company also has a demand for RMB,” said Xu Lisen, chairman of an export shoe company in Quanzhou.

According to Cai Yantian, executive vice president of the Southern China Chamber of Commerce in Russia, “There are nearly 200 Quanzhou companies that have set up offices in Russia. In addition, there are nearly 500 companies that have trade relations with Russia. The trade products have been from the initial clothing, Shoes, bags, bags, etc. have been expanded to electrical appliances, stone, hardware, plumbing, etc."

According to statistics from Quanzhou Foreign Trade and Economic Cooperation Bureau, in the first 10 months of this year, Quanzhou’s value of exports to Russia reached US$149 million, a year-on-year increase of 65.98%. Through the joint establishment of import and export companies, Baotuan set up factories in the country, etc., the trade between Quanzhou enterprises and the Russian market has further increased. Footwear brands such as Anta, Ryukyu, Xtep and Peak have also begun to appear more and more in large shopping malls in Russia.

Mr. Lin, who is in charge of the exhibition at the Foreign Service Center of Quanzhou City, told the reporter: “Quality and low price are still the greatest advantages for Quanzhou products to enter the Russian market.” From the perspective of Quanzhou companies going to Russia, shoes and apparel products are very popular in the country. . At the 2010 Russian Federation's Fall Light Industry Textiles and Equipment Exhibition held at the All-Russian Exhibition Center in Moscow, the casual trousers booths of Jinjiang and Shishi attracted a large number of Russian businessmen. Their clothing fabrics, patterns, and workmanship And so on are very valued, and these are the strengths of Quanzhou shoe clothing manufacturers.

It is reported that at present, the ruble's listing transaction in China has already begun. In December, the RMB will also be listed in Russia. “The direct transactions between the currencies of the two countries have simplified mutual settlement.” Xu Lisen told reporters that at present, Quanzhou enterprises not only export their products to Russia, many have also begun to try to set up factories directly in the local area and settle their bills directly in RMB, which is obviously more convenient.

“However, for most Quanzhou enterprises, one of the issues that is more concerned with this convenience is whether the exchange rate of the two currencies can be maintained in a relatively stable range. If one party’s exchange rate fluctuates significantly, One side is obviously unfavorable. In addition, the exchange of the renminbi to the ruble is also a matter of concern to the company, said Xu Lisen.

From the fact that the Malaysian ringgit was listed as the first emerging market currency in the Chinese interbank foreign exchange market for three months, the renminbi's exchange rate against the ringgit was stable. "This actually has also accumulated experience for the renminbi's trade in the ruble," said an industry source. In addition, some domestic banks have started pilot projects for the settlement of RMB and rubles. Fujian has become one of the 10 pilot regions where ICBC has established counter settlement services for the ruble and ringgit. After the pilot branch business matures, it will gradually promote it to the whole country.