Research On The Creation Of A Sino-Russian Free Trade Area

Nowadays,the economic globalization and regional economy are the world’s trends.Inrecent years,in order to pursue the long-term economic benefits,more and more countrieschoose alliances and cooperation.They participate in bilateral or multilateral trading systemactively to promote the regional economy development rapidly.Around the world economicsituation,Europe has their EU,North America has their NAFTA.But China and Russia,as theworld’s powerful countries,develope slowly in the regional economy.It is no good tothem.China and Russia are friendly neighbors linked by mountains,as well as the BRICScountries.The two new active countries play an important role in the world economy.In recentyears,China and Russia have a closer political relations,and their trade cooperation becomemuch more widespread. But China and Russia have not created a FTA,which is veryregrettable for both China and Russia.Firstly,we start with the bilateral trade between China and Russia,analyze theirdevelopment scale,commodity structure and their economic characteristics.Sino-Russian tradecontinued to grow rapidly.Their products structure optimized constantly.We examinedSino-Russian economic characteristics.We found that China had a larger comparativeadvantage in mechanical and electrical products,textiles and raw materials and base metalproducts.Russia had a larger comparative advantage in mineral products,chemical productsand wood products.Creating a Sino-Russian FTA is to promote their economic growth,toconsolidate their bilateral comprehensive strategic partnership of cooperation,to combine theconstruction of Northeast China and East Russia.Therefore,signing a free trade agreement ishelpful to China and Russia.It is also good to the world’s economy.In order to make asustained,long-term and friendly relationship,China and Russia should seize WTOopportunity,meet the challenges,analyze their country’s economic situation,sign a customcooperation agreement,make more investment,cooperate in widespread regions,start theSino-Russian FTA negotiations as soon as possible,so that the Sino-Russian economy andtrade would reach a new level.