Development of Trade and Financial-Economical Relationships between China and Russia: A Study Based on the Trade Gravity Model

Gleb Aksenov, Ronglin Li, Qamar Abbas (), Houlda Fambo, Sergey Popkov, Vadim Ponkratov, Mikhail Kosov, Izabella Elyakova and Marina Vasiljeva
Additional contact information
Gleb Aksenov: Institute of International Economics, Nankai University, Tianjin 300071, China
Ronglin Li: Institute of International Economics, Nankai University, Tianjin 300071, China
Qamar Abbas: College of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Houlda Fambo: Institute of International Economics, Nankai University, Tianjin 300071, China
Sergey Popkov: Department of Financial Management and Financial Law, Moscow Metropolitan Governance Yury Luzhkov University, 107045 Moscow, Russia
Vadim Ponkratov: Center of Financial Policy, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia
Mikhail Kosov: Department of State and Municipal Finance, Plekhanov Russian University of Economics, 115093 Moscow, Russia
Izabella Elyakova: Department of Economics and Finance, Financial and Economic Institute, M.K. Ammosov North-Eastern Federal University, 677027 Yakutsk, Russia
Marina Vasiljeva: Autonomous Non-Profit Organization “Publishing House Scientific Review” (Nauchnoe Obozrenie), 127051 Moscow, Russia

Sustainability, 2023, vol. 15, issue 7, 1-39

Abstract: This article empirically assessed new opportunities and provides a conceptual justification for promising areas of trade and financial and economic relations between China and Russia amidst ongoing global turbulence, the post-COVID situation, and sanctions pressure. The study utilized the trade gravity model, taking into account the latest trends in the development of the research subject and object, as well as current challenges and trends in the global economy. The study revealed similarities between the political systems, reforms, and policies of China and Russia, with centralized power structures overlapping and supporting each other at international forums such as the UNSC. The findings suggest that both countries plan to increase trade volume in the next two years, with China focusing more on trade and economic development, while Russia works to promote security and political stability. This study provides valuable insights into the economic relationship between Russia and China, its impact on the US and Europe, and highlights the need for effective policy interventions to address the challenges posed by this relationship. It offers significant theoretical and practical contributions, including the potential to unlock the potential of national economies, increase their competitiveness and help states enter a phase of advanced and sustainable development. This article provides several policy recommendations to ensure the long-term sustainability of the economic relationship between Russia and China and foster mutual understanding and trust between their peoples. These include promoting trade diversification, enhancing financial cooperation, addressing trade barriers, strengthening political and security coordination, mitigating negative impacts on other countries, promoting sustainable development, and fostering people-to-people exchanges.

Keywords: gravity model of international trade; sustainable development; financial-economical relationship; COVID pandemic-19; international sanctions; trade policy; China; Russia; dependence on imports of Chinese goods; asymmetrical interdependence (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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