国内英语新闻:Cherkizovsky Market closure heralds transformation of Sino-Russian nongovernmental trade

MOSCOW, July 28 (Xinhua) -- China and Russia have reached broad consensus on the proper handling of the sudden closure of the Cherkizovsky Market through friendly negotiations, said Chinese Vice Minister of Commerce Gao Hucheng here Saturday.

    Gao, who arrived here Wednesday, heads a Chinese delegation for talks on the impact of the June 29 closing of the market, where tens of thousands of Chinese vendors had been operating.

    Local analysts said the shutdown has marked an inevitable transformation of the nongovernmental trade between China and Russia and necessitated a change in mindset and operation mode among Chinese businessmen in Russia.

　　REASONS BEHIND THE ABRUPT SHUTDOWN

    Cherkizovsky is Russia's biggest wholesale market. Police abruptly shut down the nearly 300-hectare market in northeastern Moscow on June 29 after disclosure by .Russian Federal Supervision Service for Consumer Rights Protection and People Welfare of various illegal and irregular operation in the markets Russian Prosecutor General's Office said the shutdown was due to bad sanitary and fire control conditions, but local media believe many factors have prompted the closure.

    A June report tendered by Minister of Industry and Trade Victor Khristenko stated that contraband goods not only cost the government great loss in taxation, but also undermine the development of the country's light industry.

    The report suggested promoting legal, standardized chainstores and cracking down on terminal markets notorious for the sales of counterfeited and shoddy products and goods entered the country through "grey customs clearance".

    Russian Federal Supervision Service for Consumer Rights Protection and People Welfare, Prosecutor General's Office, Federal Migration Service , Moscow municipal government and other government agencies even proposed shutting down the market for good.

    The latest poll conducted by research group Levada Center also showed that among 94 percent of Moscow citizens who know about the closure, 67 percent support the move. Another online poll conducted by newspaper Izvestia also showed that over 80 percent of netizens are in favor of the shutdown.

　　"GREY CUSTOMS CLEARANCE" HAMPERS SINO-RUSSIAN TRADE

    Over the past 20 years, the people-to-people trade between China and Russia has undoubtedly made great contribution to bilateral economic and trade cooperation, said Gao Xiyun, Economic Minister Counselor of Chinese Embassy in Russia.

    However, it is also an undeniable fact that problems such as "grey customs clearance" had seriously hampered the health development the bilateral people-to-people trade, he said.

    The so-called "grey customs clearance" is a long-standing practice that involves intermediaries handling customs clearance for bulk commodities loaded in planes or containers trucks.

    After paying the so-called "customs clearance companies," the consignors of the goods do not have to deal with Russian customs authorities in person. Consequently they receive no official customs declaration documents.

    In recent years, the Russian government has strived to rectify its domestic market order. For a time, goods that entered the country through "grey customs clearance" were regarded as contraband, and their owners would face penalties, including fines or even outright confiscation.

    Prior to the market closure, on Sep. 11, 2008, the Investigation Committee at the Russian Prosecutor General's Office sealed up a large part of Chinese merchants' container storehouse in the Cherkizovsky market.

　　CHINESE BUSINESSMEN NEED TO CHANGE MODES OF OPERATION

    Some 60,000 Chinese are doing business in Cherkizovsky Market, making the market the biggest Chinese business community in Moscow and even the whole Russia, according to figures from the Chinese Chamber of Commerce in Russia.

    The abrupt closure of the market, in addition to the closedown of the container storehouse, has caused great economic loss to Chinese merchants and their domestic enterprises.

    Gennady Gudkov, Deputy Chairman of the Security Committee of the Russian State Duma said though the closure of the market is justified, the vendors there should be given advance notice of the closure.

    Gao Hucheng said China has no objections to Russia's crackdown on smuggling, but the Russian side should protect the personal and property safety of the Chinese citizens without hurting their dignity. While enforcing the law, the Russian side should try its best to keep the economic losses of the Chinese business people to the minimum.

    Some Chinese analysts noted that Russia's cracking down on smuggling and rectifying domestic markets would help regulate trade channels, improve trade environment, therefore conducive to sustained and sound development of bilateral trade in the long run.

    Li Huilai, Charge d'Affaires of the Chinese Embassy in Russia, said the only way out for Chinese merchants is to transform their operation mode and do their business in accordance with law and regulations.

　　JOINT EFFORTS URGED TO EXPAND NORMAL TRADE CHANNELS

    In recent years, China has strengthened export supervision and instructed Chinese enterprises and businessmen in Russia to operate honestly and abide by the laws and regulations there.

    China and Russia share a common goal in creating a trade environment that is standardized, transparent and convenient.

    In June, China and Russia established a customs cooperation committee and set up a long-term mechanism to normalize bilateral trade order in a bid to raise the level of customs clearance facilitation and create favorable conditions for the crackdown and eventual eradication of the "grey customs clearance."

    Gao's delegation, comprising officials from the ministries of commerce and foreign affairs, the General Administration of Customs and trade officials from Zhejiang, Fujian and Hebei provinces reached three consensus with the Russian side on the closure issue.

    The two sides agreed to further develop the Sino-Russian strategic cooperative partnership, deepen bilateral trade cooperation and properly settle the closure issue through friendly negotiations.

    The governments of China and Russia attached great importance to their strategic cooperative partnership and had agreed that the sudden closure of the market should not hurt their friendly cooperation, Gao said.

    The two sides should promptly initiate a customs cooperation mechanism, and develop a work plan to stop illegal activities including "grey customs clearance," regulate customs declaration channels and raise customs clearance efficiency.

    Analysts believe that with the constant improvement and development of Sino-Russian trade and economic cooperation, the issue of "grey customs clearance" could be fully resolved.