That’s according to the secretary general of the China Overseas Development Association (CODA), He Zhenwei, who talked to RIA Novosti ahead of the St. Petersburg International Economic Forum (SPIEF).
Trade between China and the US mainly relies on small and medium-sized enterprises, while China’s bilateral trade with Russia accounts for large state-owned enterprises, He said.
“However, many Chinese export-oriented small and medium-sized enterprises are now facing difficulties. The US has already raised its duties on Chinese goods from 10 percent to 25 percent, which is tantamount to closing its doors. In case American consumers agree to pay more out of their pockets, these companies will be able to raise prices on products by 25 percent, which is hardly probable,” he said.
In such harsh conditions, Chinese companies are now struggling to maintain their existence. “They should think about moving production to Russia,” He said, adding that “Chinese goods produced in Russia could be further sold in the United States and even in Europe.”