During a discussion on the prospects of cooperation between China and Russia in the agricultural field held by the Russia-Asia Union of Industry and Entrepreneurs, it was mentioned that Russia still faces some difficulties in exporting agricultural products to China and purchasin

During the discussion on the prospects of cooperation between China and Russia in the agricultural field held by the Russia-Asia Union of Industry and Entrepreneurs, it was mentioned that Russia still faces some difficulties in exporting agricultural products to China and purchasing agricultural machinery and equipment from China. After Russia simplified the import procedures of agricultural machinery and tools, Chinese equipment exports to Russia increased. However, the Russian Ministry of Industry and Trade believes that this poses a threat to Russia's local industry. At the same time, China's animal and plant quarantine requirements for imported agricultural products, bank settlement issues, and Russian grain crop export restrictions have also hindered Russia's export of agricultural products to China.

China hopes to reduce or temporarily cancel the scrap recycling requirements for agricultural machinery exported to China, while also canceling anti-dumping duties on parts and components, and speeding up the certification of agricultural machinery and equipment. At the same time, due to China’s zero tolerance for the new coronavirus, Chinese experts are unable to travel to Russia to sign contracts.

Russian agricultural market analysts believe that once the world's leading agricultural machinery manufacturers completely leave the Russian market (including Deere and AGCO), consumers' interest in Chinese agricultural machinery may increase, but this does not mean that trade will be biased towards China. The Russian Ministry of Industry and Trade confirmed that, taking into account the protection of local Russian manufacturers, import restrictions on Chinese agricultural machinery products will not be lifted as soon as possible: the products of domestic manufacturers can fully meet farmers' needs for agricultural machinery. At present, the product market share of local Russian companies does not exceed 50%. This is due to the fact that the operating rate of local Russian manufacturers is less than 50%.

The export of Russian agricultural products to China also faces some difficulties. Russian companies complain that it is very difficult to meet China's requirements for imported agricultural products. For example, China's inspection and quarantine department requires that only spring wheat and barley be allowed to be imported. Russia's Agricultural Supervision Service has submitted a request to China's General Administration of Customs for an export license for winter wheat. But how to distinguish winter wheat from spring wheat is very difficult. The Russian Agricultural Supervision Service found that the number of Russian grains that do not meet China’s inspection and quarantine requirements will show an increasing trend in 2021.

Russian experts said that the main difficulties Russia faces in supplying grain crops to China and importing agricultural machinery from China are caused by Russia's domestic protective and restrictive measures (including floating tariffs on wheat exports). According to Russian analysis data, Russia can export hundreds of thousands of tons of wheat to China in the 2022-23 agricultural season, and may even reach 1 million tons. China will allow all Russian regions to supply wheat and barley to China starting from February 4, 2022. Previously, only seven Russian regions were allowed to supply (including the Altai region, Krasnoyarsk Krai, Novosibirsk Oblast). , Omsk Oblast , Amur Oblast , Chelyabinsk Oblast and Kurgan Oblast). According to data from the Russian Agricultural Supervision Service, 792,000 tons of grains have been sent to China from Russian states since the beginning of 2022, an increase of 0.9% over the same period in 2021, but the growth rate directly depends on profitability, which is limited by Russia Relevant barriers set domestically.

Pavel, head of the Strategic Development Center of the China-Russia Chamber of Commerce, said that in the near future, difficulties in the development of China-Russia grain trade will mainly be related to banks, including exchange rate and conversion issues, transfer payment issues and inter-bank standard compatibility issues. Likewise, The issue of restrictions on Russian fertilizer exports to China has not yet been completely resolved.