Russian Exports to China Require B2B Approach, Says E-commerce Association President
Expanding Russian exports to China only possible in B2B format — association
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Artem Sokolov, President of the Association of Internet Trade Companies, stated that expanding Russian exports to China can only be achieved through a B2B model. He highlighted the challenges of B2C trade due to high tax burdens and emphasized the potential for e-commerce growth in wholesale supply.
- 01Artem Sokolov emphasized that B2B channels are essential for Russian exports to China, contrasting with typical B2C methods.
- 02Chinese legislation imposes a VAT of 13% and varying consumption taxes from 13% to 50% on imported goods.
- 03The tax burden on B2C shipments can reach between 26% and 63%, making it economically unfeasible.
- 04E-commerce is increasingly seen as a vital tool for Russian entrepreneurs to access international markets.
- 05The St. Petersburg International Economic Forum focuses on creating a stable global economic model amidst ongoing transformations.
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At the St. Petersburg International Economic Forum, Artem Sokolov, President of the Association of Internet Trade Companies, stated that the expansion of Russian exports to China is feasible only through a B2B approach. He pointed out that while Russia has substantial potential in international e-commerce, the typical B2C cross-border trade model, which involves direct shipping to consumers, is not viable for China due to high tax burdens. Since 2017, all imported goods to China incur a 13% VAT and a consumption tax that varies from 13% to 50%, depending on the product category. For instance, household goods face a consumption tax of 13% to 20%, while jewelry and alcohol are taxed at 50%. Sokolov noted that despite a tax exemption for small purchases, the overall tax burden makes B2C trade impractical. He highlighted that the EAEU and CIS regions are better suited for B2C exports. The forum, running from June 3-6, aims to discuss new models of global economic development.
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The shift to B2B exports could enhance the economic relationship between Russia and China, impacting trade dynamics.
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