the good bilateral political relationship. Firstly, Big rise and fall of the turnover often strike the normal bilateral trade relationship. For example, according to Chinas trade yearbook, in 1993 the total import and export trade volume between China and Russia is almost 7.5 billion US dollars, while in 1994 the volume is only 4.9 billion US dollars. In 1998, the total trade amount between China and Russia was 5.48 billion USD, 10.5% lower than that of 1997. Secondly, Chinas trade deficit becomes larger and larger during the past years. This disequilibrium of bilateral trade seriously influences the normal development of Sino-Russia trade relationship. From 1992 to 1998 Chinas total trade deficit adds up to over 12 billion US dollars. More important, the trade structure is not fit for the stable growth of Sino-Russia trade relations. According to Chinas 1999 economic report, until now what Russia exports to China are still mainly so-called four main commodities, which are machines, ferrous metal, chemical fertilizer and timber. What Russia import from China are mainly foodstuff and some household electrical appliances. The present Sino-Russia trade structure cannot spur the further and steady trade development, and cannot make the full use of the present trade complementary potentials.1.5 The high risks existing in bilateral trade relations. Many Chinese and Russian companies have to run high risks to go on the bilateral transactions because of three reasons:(1) Two countries have never established trade relation mechanism system conformed to the world standard until now. Their trade system reforms have not been accomplished. In Chinas respect, the SOEs have not transformed the past planned system. In the trade relations with Russian companies, many big trade companies lack the trade flexibility, and cannot adapt themselves to the moving market. On the other hand, most of private companies have no adequate capitals to run big bargains ...
