The volume of exports of the capital's companies to China increased by 40%
2021-01-11 05:07

The volume of exports of the capital's companies to China increased by 40%

In early December 2020, the press service of the Moscow Department of Economic Policy and Property Relations published information that the total volume of exports to China by Moscow companies in the past nine months increased by more than 40% if we take into account the same period in 2019.

Vladimir Yefimov, Sergei Sobyanin's deputy for economic, property and land issues, noted that the capital's industrialists and China have long been in good, partnership relations. For example, this state accounts for 15.8% of total exports of all goods by Moscow manufacturers. And Chinese companies have invested in the development of the city's economy about $1 billion.

The official said that in the first nine months of last year, the total volume of non-resource energy exports from the Russian capital to China in money terms amounted to $ 1.5 billion. This is 40.8% more than in 2019.

As mentioned above, Chinese companies are actively investing money in the economic development of the city. As a consequence, some of them obtain resident status in special economic zones (SEZs). This status allows a number of tax benefits and exempts businesses from customs duties. For example, in the autumn of 2020, the large Chinese manufacturer of SIM cards Eastcompeace Technology, or more specifically, its Russian representative office called "Eastcompeace Rus", received such status. The company is located on the territory of Technopolis "Moscow", one of the best SEZ sites.

It is reported that the enterprise will specialize in the production of bank cards and the development of software for eSIM. As of early December 2020, the company was actively developing a project to build its own building on the Alabushevo site. The plant will create more than 50 new jobs.

Konstantin Shimolin, the head of Istkompis Rus, noted that the launch of the enterprise is planned for the second quarter of 2022, and the plant building itself will be commissioned in the first quarter of next year.

According to Svetlana Ganeeva, the Director of the State Budgetary Institution "City Agency for Investment Management", at present in the Russian Federation there is an active development of electronic platforms created specifically for the needs of business, including international. For example, the Investment Portal has been successfully operating in the capital for about 7 years. On this platform, every entrepreneur can obtain a large body of useful information, from available support measures to a list of Moscow property to be leased or purchased. The information portal gives the user access to 29 services, which greatly simplify the investment activities of the capital (and not only) businesses.

It should also be noted that at the end of autumn 2020, Vladimir Yefimov announced important news for the business community: there is an active development of another digital platform in the capital. The aim of the platform is to support Russian enterprises working for export. According to the idea of the creators, the new portal will give the capital's businessmen the opportunity to communicate directly with potential buyers located in other countries.

The list of foreign corporations to be placed on the virtual site will be provided by Mosprom. This institution was created specifically to help Russian businessmen master international markets. If a domestic supplier has never engaged in foreign trade activities, but wishes to try his forces in this direction, he can also leave an appropriate application on the portal. The launch of the innovative virtual platform is planned for this year.

Vladimir Yefimov noted that the idea of creating the portal was triggered by the sudden increase of interest to the production of the Moscow enterprises from other countries. At the moment the highest level of foreign demand is in the field of communication and telecommunication equipment. Thus, for the 9 months of the last year total exports of fiber-optic cables alone increased by 79% compared to the first three quarters of 2019. In monetary terms, the amount amounted to 1.74 million dollars. At the same time as cable products, buyers from other countries have an increasing demand for equipment for the construction of communication lines. It is caused by the active development of Internet infrastructure and popularization of 5G technologies. European countries are particularly active here.

As a consequence of all this, the capital authorities decided to give additional support to Moscow manufacturers in the development of international markets, in addition to those measures that are already in force today. As stated above, the digital exchange is due to start operating as early as 2021. It will be possible to access the platform through Mosprom's website.

It should also be noted that China is not the only destination for exports among the capital's enterprises. For example, for 8 months of 2020 Moscow high-tech manufacturers actively supplied their products to Japan and India. The most active buyer was India - in 8 months of 2020 63% more high-tech products were sent to this country than in the same period of 2019. In monetary terms, this amounted to $140.32 million. Also on 26,2 % more production from Muscovites was got by Japan ($511,71 million) and on 22,4 % - China ($563,31 million).

The list of exported by the Moscow enterprises high-tech products to Asian countries includes a fairly wide range of goods. This is electric distribution devices, communications equipment, spare parts for computer equipment, transmission equipment, etc. The most demanded in 8 months of 2020 were turbine engines and gas turbines. The amount of supplies of these goods occupied more than 1/3 of the total volume of export to the Asian market and amounted to $348.67 million. In addition, the export volume of communication equipment increased as well: in eight months of the previous year, these goods were sold to Asian countries for 16.65 million dollars.