"China's Latest Obsession: Imports from Russia" or "Russian Products Sweeping China's Market"
Laissez-fair Market Boom: The Chinese-Russian Trade Tango
Strolling down the brightly decorated shopfronts in China, you'll find yourself greeted by a vibrant display of Russian dolls and the unmistakable red, white, and blue flags. Inside, you'll find an array of Russian goods from chocolates to vodka, a testament to the deepening economic relationship between China and Russia.
In the heart of China, pop-up stores selling goods from the land of the bear have become a common sight. Some are left puzzled, wondering why these shops have seemingly sprung up overnight.
Since 2022, thousands of these stores have popped up across China, lured by the public's growing affection for all things Russian and the expanding trade ties between Beijing and Moscow. The continuing conflict in Ukraine has further strengthened this bond.
China, with its sanctions-ridden neighbor facing economic pressure, is stepping in as a critical lifeline. Bilateral trade has been consistently hitting record highs, with cheap Russian oil, gas, and coal dominating China's imports, while Russian food products like ice cream, sweet biscuits, and milk powder have gained popularity.
Keen to capitalize on this booming demand, Chinese businesses have registered more than 2,500 new companies involved in the trade of Russian goods since 2022. As of this month, around 80% of these companies are still in operation.
While aquatic and agricultural produce make up the majority of China's food imports from Russia, the real head-turners have been Russian-branded chocolates, biscuits, and milk powder that seem to perfectly align with the local taste.
Now, these shops aren't just about sales. They're a window into Russian culture, a showcase of the "Made in Russia" brand, and a symbol of China's growing rapport with its eastern neighbor.
The stores' popularity has sparked questions about the authenticity of the goods on sale. Reports and investigations have revealed that some products labeled as Russian are actually produced in China. Authorities have cracked down on misleading labeling and advertisements in response.
Show Time in the Capital
In the heart of Beijing, a shop assistant arranges neat rows of candies, biscuits, and milk powder, the store's most sought-after items. "The best seller is Russian honey - it's a big hit," she says, gesturing towards the array of chocolates.
In the background, a loudspeaker broadcasts a looping message, welcoming customers to the "Russian Goods Pavilion" and praising Russian products for their health benefits, natural ingredients, and high quality.
Tourist Liang Jinghao from the northern Shanxi province couldn't help but notice similar stores back home. "Russia is a very good country, with a vast land area and rich resources, and its people are also very friendly," he said.
Su, a 20-year-old entrepreneur, has opened three Russian goods stores in the small city of Pingliang, Gansu province, since last September. "China and Russia have maintained pretty good relations in recent years, and personally, I have a fairly positive view of Russia as a country," she said.
Sanctions Bypass and Camaraderie
As Putin wages his grinding war on Ukraine, China and Russia have grown closer than ever, fueled by their shared animosity towards the US and their desire to challenge the Washington-led global order.
Russia and its autocratic leader also enjoy wide popularity among the Chinese public. In a poll last year by the Center for International Security and Strategy at Beijing's Tsinghua University, 66% of respondents expressed favorable views towards Russia.
The made-in-Russia craze can trace its roots to early 2022, with the viral "Russian State Pavilion" e-commerce store endorsed by the Russian embassy in China. Shoppers spent nearly 6 million yuan ($826,000) on Russian goods within three days, catapulting the trend to new heights.
More than 300 Moscow-based companies have joined Chinese e-commerce platforms since then, and the first "Made in Russia Festival and Fair" debuted in Shenyang and Dalian in 2023.
Fake Frenzy and Regulatory Crackdowns
The unofficial stores, fueled by the growing demand, have come under greater scrutiny from Chinese consumers and media. The primary concern: the quality and authenticity of the goods on sale.
Late last year, shoppers took to social media to complain about products labeled as Russian, some of which were actually made in countries like Malaysia. A report by state-affiliated Jiemian News found a significant portion of food products, including bread, sausage, and milk powder, were produced in factories in northeastern China.
Russian influencers living in China further exposed what they called "fake Russian goods." A Russian Douyin user said, "I've never seen these candies in Russia. The packaging is all fake," while another held a sausage in a store in Shanghai, with a shopkeeper asking her to stop filming.
Following the outcry, regulators in Shanghai launched two rounds of inspections on 47 Russian goods stores, ordering some to close and fining others for misleading labeling and advertising.
Enrichment Data:
Overall: The increase in pop-up stores selling Russian goods in China is largely fueled by deepening economic ties between Beijing and Moscow. This flourishing relationship has arisen as China has become a crucial market for Russia, especially after Western sanctions were imposed following Russia's invasion of Ukraine in 2022. Here's how this trend has evolved and its impact on bilateral trade:
- Reasons for the Increase in Pop-up Stores:
- Deepening Economic Ties: The surge in stores selling Russian goods reflects the growing economic collaboration between China and Russia. As Russia confronts international sanctions, China offers a vital market for Russian exports, such as oil, gas, coal, and food products.
- Affinity of Chinese Consumers: Chinese consumers have shown a strong interest in Russian goods, particularly food products like chocolates, biscuits, and milk powder. This demand has been fueled by the "Made in Russia" brand, which has become popular in China.
- Economic Necessity for Russia: Russia's reliance on China for economic support has increased due to sanctions. This has resulted in a significant increase in bilateral trade, with China importing more Russian goods and providing a vital market for Russian exports.
- Impact on Bilateral Trade:
- Trade Volume Increase: The proliferation of stores selling Russian goods has significantly boosted bilateral trade between China and Russia, encompassing not only energy resources but also a wide range of consumer goods.
- Diversification of Imports: While energy resources remain a significant part of China's imports from Russia, the rise in demand for Russian food products and other consumer goods has diversified China's import portfolio.
- Challenges and Controversies: The trend has also raised concerns about the authenticity of products labeled as "Made in Russia." Some products are found to be manufactured in China but labeled as Russian, resulting in regulatory actions to ensure transparency and authenticity.
- The growing rhymes of Chinese and Russian harmonies can be heard from the city streets, as Russia's renowned goods and brandings proliferate across China's marketplaces.
- Especially in Beijing's bustling centers, Chinese consumers have developed a fascination for Russian-labeled items, from candies and biscuits to milk powder, propelling a trade boom between the two nations.
- In the wake of escalating Western sanctions against China's eastern neighbor, Moscow has turned to its friendship with China, seeking economic salvation in the form of increased bilateral trade and consumers' growing affection for Russian goods.
