Export to China: opportunities, reality, prospects

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

Currently, China is the largest trading partner of the Russian Federation. Despite the fact that the volume of imports significantly exceeds the amount of exported products, the exchange of goods between countries is moving in both directions.

Reason to export to China

The rise of the Chinese economy has led to a significant increase in incomes and an increase in the middle class, which prefers local luxury products to imported ones. This situation makes it promising to export premium goods to China, from high-end products to cars, jewelry and luxury goods.

At the same time, the urbanization and urbanization of rural residents, as well as the shift towards high-tech and digital segment of the Chinese economy, provide a lot of opportunities for the export of conventional food to China. The rapid development of the consumer market and the mass production of industrial goods have led to the filling of the main commodity niches, while the empty ones are ready to accept an almost limitless number of export goods.

The dynamically developing Chinese market attracted the attention of Russianentrepreneurs. However, exports to China from Russia have their own characteristics. Despite the fact that the legislation is quite loyal to both large and small exporters, the Russian economy cannot offer the Chinese a wide range of competitive goods.

Commodities

Commodities traditionally occupy the leading positions among the categories of exports to China from Russia. Chinese entrepreneurs are willing to buy wood and sawn timber, mainly raw board, but woodworking waste is also in demand. Lumber from noble coniferous species is of particular value.

Stainless steel and non-ferrous scrap is also of great interest, and the export of this type of raw material to China has long turned into an independent business sector. According to experts, up to 40% of all stainless steel smelted in China is made from scrap metal.

The incalculable amount of electronics produced in China requires a corresponding amount of copper, making this type of export a win-win. An additional impetus to the export of copper scrap to China was given by Russia's cancellation of export duties on used copper cathodes. The cheaper metal immediately attracted the attention of Asian manufacturers.

Export garbage

Serious volumes in Chinese exports are occupied by the supply of "garbage". Industrial waste processing technologies make it possible to turn secondary raw materials intonecessary materials. Therefore, China around the world buys waste paper, plastic and failed electronic components. The value of recyclables sold to China from the United States alone exceeds a billion dollars annually. In Russia, where waste processing is still poorly developed, exporting such goods to China is beneficial not only in the economic sense, but also in terms of the environment.

Food

Today's China has the largest population on the planet, thanks to which the demand for products in the country is constantly growing. The Chinese are happy to join the cuisines of other nations, and the demand for deli meats, cheeses, caviar, honey and chocolate is constantly growing.

Demand for everyday and versatile foods is also not decreasing. Exports of buckwheat, soybeans, cereals and flour to China are constantly increasing. According to scientists from the University of Leeds, if the pace of Chinese urbanization continues, then in a few years the country will be able to consume all the world's grain exports.

Along with flour and grains, the Chinese market is in high demand for meat, especially beef and chicken; vegetable oil of all kinds; milk, dairy products and Russian ice cream; sweets and confectionery. The export of pine nuts and other types of nuts to China proved to be a profitable business.

Alcoholic drinks and water

Along with changes in culinary habits, the approach of Chinese people to alcoholic beverages has also changed. We althy Chinese prefer time-tested foreign drinks, and the changingthe appearance of cities contributes to a change in tastes - new restaurants, bars and clubs are opening everywhere, where the European culture of drinking is being promoted. For multinational Russia, with its age-old alcoholic traditions, rich opportunities open up here.

Some shortage and often poor quality of drinking water in cities has created a vast niche for exports. Bottled water supplies to China come from many countries around the world, and there is no shortage of buyers.

Features of export activities

When exporting to China, VAT will be charged under the same conditions as for any export transactions. The tax rate is 0%, provided that all the necessary papers are provided to the tax office. In case of failure to submit the relevant documents within 180 days, the exporter will be forced to pay VAT at the usual rate of 18% on export earnings.

Increasing profits even from the smallest exported batch of goods will help refund export VAT in the amount of 10-18%, depending on the type of product, which is carried out based on the results of a desk audit. In case of a positive decision and the company has no debts to the budget, tax deductions will be returned to the entrepreneur's account within 14 days.

In China, there is a mandatory certification of beverages and food, medicines and he alth products, as well as non-food products. In the case of exporting Russian-made products to China, the supplier is fully responsible for the quality and availability of the approvedChinese law certificate.

Also, the laws of China clearly regulate the activities of foreigners in the country. To start a legal business, you will need to register a company with 100% foreign capital and, having accurately indicated the entire list of activities in the charter, strictly adhere to it. In the case of export activities, the charter must specify absolutely all types of goods that will be imported into China.