This article deals with the recent #increased mutual economic and trade #cooperation between #Ukraine and #China.
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China included Ukraine among only five countries which were granted the right to import grain products to the territory of the People’s Republic of China. In addition, there are no special rules for import of grain to China. We note that Ukraine has already imported nearly 700 tons of barley in 2016, while in 2015 and 2014 this figure was only 1.5 tons.
We note that in 2015 China became the biggest importer of Ukrainian food products. The amount of imported Ukrainian food was around USD 889 million with the predominant share of import of corn.
In addition, Anhui Foreign Economic Construction Group Co Ltd., a Chinese construction company, announced that due to increased cooperation between Ukraine and China in agriculture it is currently negotiating the possibility of building grain terminals and flour processing plants in Ukraine. One of the main factors of such decision to invest in Ukraine is cheap and qualified labour force.
Furthermore, there is ongoing negotiation in relation to cooperation in aviation between Ukraine and the People’s Republic of China. In particular, Ukrainian manufacturer of aircrafts, Antonov aviation concern, is interested in launching a serial production of the largest aircraft in the world ‘Mriya’. The investors from China could provide financing for such project.
Ukraine also aims to strengthen its business and trade cooperation with China through implementation of a new trade route between Ukraine and China, which is designed for transportation of goods avoiding the territory of the Russian Federation. On 15 January 2016, the first cargo was loaded on a ferry in the Ukrainian port of Illichivsk to be transported to China via Black and Caspian seas and railway routes through Georgia, Azerbaijan and Kazakhstan. The cargo reached the Chinese border within 16 days.