China- Russia cooperation on forestry business is booming

Workers are processing timber in the forestry cooperative zone. [Photo: China Plus]

Chinese companies in Russia are developing production and boost incomes in forestry economic, giving a new surge to the most potential area of bilateral cooperation.

Cooperation between Russia and China's forestry industries is mainly focused in the fronteer Krais region of Russia, which accounts for 14 percent of the whole country's forestry reserves. Timber accounts for more than 12 percent of local exports to China.

Xu Weiping, the commercial counselor of China's consulate in Yekaterinburg, says China's forestry industry has contributed a lot to the local economy.

"The local Chinese enterprises are mostly private business. During the last ten years, they have formed a complete industrial chain that includes planting, cutting, processing, export, transportation, and equipment sales. They have made a significant contribution to bilateral economic cooperation."

Yuxin is a large-scale Chinese company operating in the Krasnoyarsk region. The company is building a forestry cooperative zone with investment of 30 million U.S. dollars. It will cover an area of 200- thousand hectares.

Zhao Zhigang, a manager at the company, said they have a good understanding of the Russian business environment, and its policies and culture.

"We've built platforms for legal services, customs declaration, and resources supply in the industrial zone, to attract more experienced domestic enterprises. They will make rational use of resources, and increase the added value of products by completing the industrial chain of rough machining, deep processing, and waste processing."

Besides promoting the development of the value-added economy, Chinese enterprises are also giving a boost to local employment.

Vladimir has been working with Yuxin for the past five years.

"Without Chinese companies, there would be nothing in Kansk. Anyone who wants to make money works for Chinese companies now."

Xu Weiping from China's consulate says that state-owned enterprises are playing an active role in the development of bilateral cooperation

"Bilateral cooperation in forestry will be deepened. China's large state-owned enterprises are also concerned about cooperation in this area. We will launch projects with Russian enterprises in the future for pulp mills and the deep processing of timber."

Zhao, the manager from Yuxin, also said that their company wants to work with state-owned enterprises, as well as encouraging more domestic forestry enterprises to look to build partnerships overseas.