of turning the high technology into production.Chapter3. Problems existing in the Sino-Russia trade relations:1. Problems existing1.1 Chinese commodities continue to be synonymous with the cheap and low quality goods, despite the efforts of trade officials to improve quality. This is due to many reasons. Firstly, the border trade communication lacks the effective supervision, so this communication is just in disorder. Many small trade companies of both sides are eager for quick success and instant benefits, so Chinas many counterfeit goods pour into Russia market. It is reported that Some Russian cities has even held some Chinas counterfeit goods shows, which shows the paper jacket, chicken leather outwear, and so on. More seriously, now more and more Russian consumers also begin to distrust many Chinese companies with good reputation. However, now Korean and Japanese competitors also try their best to enter the vast Russia market with their high-quality goods. Russian shuttle traders have shifted their attention to these developing countries like Indonesian as the market in Chinese goods has reached its limit. In 1997 and 1998 the devaluation in Southeast Asian economies as a result of the financial crisis will make their exports much more competitive. Thus Chinese goods are just losing a lot of the Russian market share. Secondly, the illegal traveling trade is still rampant. Sino-Russian border and local trade now constituted one-third of the total bilateral trade volume, it was revealed at a symposium of Sino-Russian border and local trade held here recently. Many pedlars make use of the traveling trade to transport counterfeit goods into Russian market and thus destroy the overall image of Chinese goods. These pedlars have many advantages over big trade companies with good credit, for example, they have fewer management links and more flexible trade tricks, and they could provide much cheaper goods. More important, they cannot be e...
