This article deals with the recent intensification of economic relations between Ukraine and China and provides some statistical data on the amount of trade turnover and its structure.
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Ukraine and China have moved into another phase of cooperation. The Ministry of the Economic Development and Trade announced that China will support construction of facilities and establishment of entities in Ukraine which will export production into the EU member states.
In addition, Ukraine and China agreed to increase mutual cooperation in construction of infrastructure projects on the territory of Ukraine. Furthermore, this includes cooperation in the Great Silk Road project.
Chinese companies will also participate in various projects in Ukraine in relation to alternative energy (in particular development of solar energy), grain trade, IT, industrial facilities modernization, etc. Chinese investors also finance projects in relation to medical equipment development and construction of housing in Ukraine. Additionally, Ukraine and China will work on increase of tourism in both countries.
We note that in the first half of 2016 export of Ukrainian goods to China decreased by 34% and amounted to USD 1.1 billion. However, import of goods from China increased by 12% and amounted to USD 2 billion.
Ukraine most exported goods to China were agricultural goods and food (USD 654.8 million), mineral goods (USD 300.6 million) and machinery (USD 54.5 million). China exported to Ukraine mainly products of machinery (USD 878.7 million), chemicals (USD 415.5 million) and consumer industry products (USD 236.2 million).
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. 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.