Russian-Chinese Heavy Machinery Trade: Current Situation, Issues And Perspectives

Machinery manufacturing is a leading sector in the most countries of the world. It produces machinery and equipment for other sectors and for final consumption, gives jobs to millions of people, determines a level of technological development. And the core of this whole industry is heavy machinery manufacturing.Under the pressure of the outside world-sanctions from the EU and US, in conditions of increasing economic cooperation between Russia and China, both countries start to pay more attention to the structure of their bilateral relations. Machinery and equipment is the second item of Russia-China trade, its cost and physical volume is increasing, but deterioration of the trade is obvious:Chinese MM and HMM products export to Russia has been rising since the beginning of the XXI century and threats Russian industry’s stability and existence.The thesis aims to study Russia-China HMM trade through the world HMM market, competitiveness of Russian and Chinese HMM products and its issues. First of all, the author studies the role of MM and HMM industries in global economy, its structure and international trade of MM and HMM products. Second, the author provides competitiveness analysis of Russian and Chinese HMM industry:impacts on the national economy, HMM production position on the world market. The main part of the paper is devoted to Russia-China HMM trade current situation and issues. The author identifies main factors influencing bilateral HMM trade, construct OLS model and proves the impact of each factor to the trade. Based on the model and possible future scenarios, the paper offers variants of the trade forecast and recommendations to improve bilateral HMM cooperation:measures to increase industrial cooperation and measures to increase Russian HMM products export to China.