Business news

19 Jul 2022

More Chinese companies might use import substitution platform of Belarus’ commodity exchange

An archive photo

MINSK, 19 July (BelTA) – The Chinese company China Merchants CHN-BLR Commerce and Logistics Company (CMCB) will help bring suppliers and buyers to the import substitution platform of the Belarusian Universal Commodity Exchange (BUCE), BUCE Spokesman Roman Yaniv told a BelTA correspondent.

The Chinese company China Merchants CHN-BLR Commerce and Logistics Company, which is part of the China Merchants Group Corporation, will assist in attracting suppliers and buyers from China to BUCE’s electronic import substitution platform. Such an agreement was reached as a result of the visit of CMCB representatives to the central office of BUCE.

In order to optimize logistics costs, CMCB, together with BUCE, will explore alternative routes to deliver Belarusian goods purchased through BUCE to China using various modes of transport. This work will be carried out within the framework of the memorandum of cooperation signed by BUCE and CMCB in April 2022. The document provides for joint work in the field of transport and trade logistics.

According to CMCB representatives, the gradual relaxation of COVID-19 restrictions in China will help intensify business contacts between Belarusian and Chinese companies, including the trade in import-substituting goods. The analysis of purchase orders placed on the BUCE import substitution platform suggests that this kind of cooperation holds a lot of promise. “When filling out an application, many Belarusian enterprises indicate China in the ‘country of origin’ column. This is most common for such commodity groups as electrical equipment, communications equipment, as well as component parts and materials for the manufacturing industry. So far, only a few suppliers of import-substituting products from China use the BUCE platform, however, their number may increase in the near future, as Chinese companies that are accredited at BUCE to trade in other commodities will also use the import substitution platform,” the press service informed.

As far as logistics is concerned, despite the inaccessibility of traditional transport corridors, the delivery of goods from Belarus to China and back is carried out as usual. Of course, the lengthening of the routes increased the cost and time of transportation, but, according to CMCB representatives, most market participants have already adapted to the new conditions and do not see any serious problems here.