The Russian government is currently evaluating the potential removal of preferential trade treatment for China. This preferential regime was initially introduced on September 13, 1994, granting Chinese goods special tax advantages. Under this system, products like steel pipes benefited from a 75% tariff reduction, and even when specific protective measures were applied against Chinese imports, these products remained largely untaxed.
According to insiders within the Russian government, Prime Minister Viktor Zubkov has convened a working group comprising the Ministry of Economic Development, the Ministry of Industry and Energy, the Ministry of Finance, and the Ministry of Foreign Affairs to assess the matter. Russian economic analysts suggest that ending this preferential system could significantly reduce the competitive pressure Chinese goods exert on domestic Russian industries, particularly in sectors such as rolled steel, steel pipes, and large-scale chemical manufacturing.
Experts argue that the current preferential arrangement no longer aligns with Russia's evolving economic strategy. While it once helped China bypass certain tax barriers and access sensitive markets in Russia, it now poses a challenge to local producers. The decision to review this policy reflects growing concerns about the long-term impact of Chinese imports on Russia's industrial base and market stability. As the country seeks to strengthen its domestic industries, the reconsideration of this long-standing trade policy may signal a broader shift in Russia’s approach to international trade relations.
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