As a bridgehead and hub for trade and economic cooperation with Russia, Heilongjiang, a major border-trade province, is leveraging new opportunities from the first China-Russia Expo and the 25th Harbin International Trade Fair to further expand the scope and depth of Northeast Asia cooperation, achieve a leapfrog eastward expansion of the "New Silk Road" economic belt, and build a "strategic growth pole" to drive the transformation and upgrading of China-Russia trade and economic cooperation.

New platform expected to expand the "New Silk Road" eastward

Wang Decheng, a senior advisor from Thailand's Siam Green Leaf Co., Ltd., recommended and offered tastings of durian and other tropical fruits to Chinese and Russian merchants at the China-Russia Expo. "We have always wanted to develop markets in eastern Russia. In the past, frozen products were shipped by sea. If we could reach Northeast Asia through Heilongjiang via rail and river-sea combined transport, it would open a brand-new trade corridor." Wang Decheng, attending the expo for the first time, said in less-than-fluent Chinese.

The expectations of Chinese and foreign exhibitors for the new platform and new opportunities are not "wishful thinking." China-Russia relations are currently at their most active and fruitful period in history, and trade and economic cooperation between the two countries has bucked the trend and risen despite the sluggish global economy. Data from the Ministry of Commerce show that last year China-Russia trade totaled US$89.2 billion, up 1.1%. From January to May this year, two-way trade reached US$36.8 billion, up 4.3% year on year.

China, which has been Russia's largest trading partner for four consecutive years, is making comprehensive plans and meticulous efforts to enhance the corridor efficiency of the "New Silk Road" economic belt. Li Fenglin, director of the Eurasian Institute of the Development Research Center of the State Council, pointed out that the Silk Road not only runs through Central Asia but also proposes the idea of developing maritime transport in northern regions, which can drive northern ports. At present, the Trans-Siberian Railway and the Baikal-Amur Mainline in Russia's Far East are not fully utilized. Heilongjiang Province's concept of an "Eastern Land-Sea Silk Road Economic Belt" provides an opportunity to use these corridors for trade and economic cooperation with Russia's Far East and Siberia.

New opportunities start a "new engine" for China-Russia cooperation

From the initial small-commodity border trade to gradually expanding resource and energy cooperation, and then to machinery manufacturing, agricultural product processing, infrastructure construction, as well as cultural and high-tech industries, the black soil has witnessed the fission and upgrading of China-Russia trade. Heilongjiang Governor Lu Hao said the first China-Russia Expo is a valuable opportunity and important platform for Heilongjiang to promote all-round exchanges and cooperation with Russia and further raise the level of its foreign trade and economic exchanges.

Unlike in the past, Russian merchants attending the China-Russia Expo this year are more pragmatic, and most have prepared Chinese-language brochures for project matching. For example, the "5 Major Advantages" brochure of Far East Intermodal Group was designed according to Chinese reading habits. Similarly, Chinese exhibitors are not limited to selling goods but are seeking opportunities for overseas investment and trade exchanges.

Tao Ran, chairman of the Heilongjiang Electric Power Cooperation Alliance with Russia, said the company initially only exported power equipment and other products to Russia's Far East, but has now transformed into fixed asset investment such as hydropower station construction, thereby boosting the economy and employment in Russia's Far East.

At the same time, cooperation in emerging industries such as China-Russia cultural industries and e-commerce is also rising. As one of the online game companies with the greatest influence in the Russian market, Perfect World generated US$150 million in annual joint revenue with its Russian partners in 2013. "We are also investing and cooperating in film and television dramas, the education industry, software talent training, e-commerce and other fields, and planning a long-term development strategy for the cultural industry," said Chi Yufeng, head of the Perfect World group.

Zhembulat Abdulkhalimovich, vice chairman of the Legislative Assembly of Russia's Primorsky Krai, said at a China-Russia cross-border e-commerce seminar held during the expo that Russia's e-commerce trade volume was US$17 billion in 2013, with 30 million online consumers, while China has efficient and mature experience in e-commerce, and the two sides are carrying out all-round matching.

"Both China and Russia face the important task of structural adjustment, which provides opportunities for bilateral investment cooperation and major project cooperation." Ling Ji, director of the Eurasian Affairs Department of the Ministry of Commerce, and other experts also believe that Heilongjiang, as a "bridgehead" with geographical advantages, will start a "new engine" for China-Russia cooperation.

"New corridor" builds a "core area" for Northeast Asia opening-up

In December 2013, China proposed strengthening trade and economic cooperation and technological exchanges between Heilongjiang, Inner Mongolia and other provinces and regions and Northeast Asia, accelerating the construction of international corridors in Northeast Asia and Eurasia, and building core areas and important hubs for China's opening-up toward the north and Northeast Asia.

Facing the opportunities, Heilongjiang Province proposes to take Harbin as the center, highlight the role of the central node of major opening-up corridors, mega-cities and port bridgeheads, and build an international commodity distribution center, a modern international logistics center, an export-oriented modern industrial distribution center and an international currency settlement center oriented toward Russia and radiating to Eastern Europe and Northeast Asia. The key is to open up the railway transport artery connecting Eurasia.

"The first China-Russia cross-border river railway bridge, the Tongjiang-Nizhneleninskoye Bridge, has completed investment of more than 130 million yuan. Once completed, it will become the 'golden section' of the Eastern Silk Road, and Northeast Asia's transport network will reach Europe directly through the Russian Trans-Siberian Railway," said Sui Hongbo, secretary of the Tongjiang Municipal Party Committee, which has a port with Russia.

The opening of the China-Russia eastern "golden corridor" will gather cargo from the southeast coast, the Beijing-Tianjin-Hebei region, Northeast China, as well as Southeast Asia and East Asia, and connect to Russian and European markets via the Manzhouli and Suifenhe ports, driving win-win development along the Eurasian economic belt. Russian railway lines and ports will all be revitalized, with unique advantages in customs facilitation, effective transport capacity, radiation radius, speed and timeliness, and logistics costs.

"The urgent task is to upgrade transport facilities, including the Trans-Siberian Railway and the Baikal-Amur Mainline," Li Fenglin and other experts believe. The "New Silk Road" formed by the eastern and western corridors will open a new starting point for China-Russia cooperation and also open a window for transformation for Heilongjiang, which faces difficulties in its energy industry and considerable downward economic pressure.