Research On Sino-Russian Timber Trade Development Based On Blockchain Technology

Currently,Sino-Russian timber trade attracts worldwide academic and expert society due to its dynamics and growth.However,the status of bilateral trade currently has a lot of criticism concerning the issue of sustainable timber trade,which has a negative impact on China's forest industry development and foreign relations.In 2016,the representatives of the China,Mongolia and Russia signed the "China-Mongolia-Russia" economic corridor to promote the common development of the three neighboring countries.In addition to pragmatic cooperation in the fields of tourism,media,environmental protection,infrastructure development,this agreement also includes accelerating industrial innovation development(Industry 4.0).Prolific illegal timber trade between Russia and China cannot be stemmed by present certification schemes and Russian governmental strategies.Blockchain technology itself is an inseparable part of Industry 4.0,which can provide a new technological opportunity while addressing illegal logging,regulating timber trade,and meeting the needs of environmentally sensitive markets.Decentralization based on smart contracts could ensure timber supply chain transparency through each log cryptographic encryption.However,it is considered complicated as cryptocurrency(on which trade depends)is beyond the legislative sphere of both countries and energy demands are enormous.Beyond cryptocurrency prohibition,huge businesses and governments cannot accept blockchain for international trade because of transparency and cost risks.Digitalization through blockchain implementation could provide a highly transparent,non-editable system to handle decentralized big data characteristic of the forestry economy,realize Industry 4.0 and develop the "China-Mongolia-Russia" economic corridor.Fundamentally,a workable Russian-Chinese Government-Science-Business model must be cultivated for effective blockchain implementation.This paper includes SWOT analysis method to determine blockchain technology application reasonableness in the Russian-Chinese timber trade.The paper analysis the necessity and out relative factors and propose overall target and principles,especially pay attention to study the measures and prospects of sustainable development of timber trade between China and Russia based on blockchain technology.