MOSCOW – Following negotiations with Chinese President Xi Jinping, the president of Russia stated that both countries intend to develop the practice of payments in national currencies.
Russia and China intend to continue developing the use of national currencies in bilateral trade, Putin told a news conference at the end of talks with Chinese President Xi Jinping.
“Russia and China intend to develop the practice of payments in national currencies. We have just concluded intergovernmental agreements aimed at increasing the use of the ruble and the yuan in bilateral trade, as well as ensuring the uninterrupted operation of banking services for business under the conditions instability of global markets,” Putin said.
The Russian head of State stressed that, in the course of the talks, the leaders discussed the current state and prospects of bilateral cooperation.
“We look at current international affairs in detail, paying close attention to Sino-Russian cooperation in the areas that represent a truly deep mutual interest for us,” Vladimir Putin said.
Meanwhile, small and medium-sized enterprises in China, under pressure from the trade war with the United States, are studying the possibility of transferring production to Russia.
The Secretary-General of the International Development Association of China (CODA), He Zhenwei, in an interview said before the St. Petersburg International Economic Forum (SPIEF) that trade between China and the US mainly depends on small and medium-sized enterprises, while China’s bilateral trade with Russia represents large state-owned enterprises.
“However, many Chinese small and medium-sized export-oriented companies now face difficulties. The US has already raised its Chinese product taxes from 10 percent to 25 percent, which is equivalent to closing its doors. from their pockets, these companies could increase product prices by 25%, which is unlikely,” he said.
Under such harsh conditions, Chinese companies are now struggling to maintain their existence. “They should consider transferring production to Russia,” he said, adding that “Chinese products produced in Russia could be sold in the United States and even in Europe.”