with Russian companies. In Russias respect, the trade policies are not stable and effective; as a result, Chinese companies that are accustomed to trading with Western corporations are full of worries when they trade with Russian companies. What affects the Sino-Russia trade relationship is that these two countries have never established trade relation mechanism system conformed to the world standard until now.(2) Problems of the bank setting accounts system. According to the statistics of China trade, spot transaction is becoming more and more important. However, after Russias radical economic reform, few Russian banks have the adequate strength and credit. More important, the agency system between Chinese and Russian banks is not mature, so there are few spot transaction accounts between Chinese and Russian companies. Until now almost 420 banks in 33 countries have established representative units in China, however, Russia has only established the Russian International Business Bank and the Russian Credit Bank have established branch banks in China. On the other hand, only the Bank of China established branches in Russia. Therefore, the cash settlements through L/C (letter of credit) have not been widely used by corporations of both sides. Therefore, the bilateral trade relationship is seriously influenced by the trade settlement.(3) The arbitration system is not mature. There is no denying that many trade disputes often emerge in the Sino-Russia trade relations, but they cannot be easily settled, because no just, reasonable and effective arbitration systems have been built up until now. In this situation, the irregular trade actions such as illegal speculations, defaulting and the low rate of discharging contracts emerge and prevail between Chinese and Russian traders. Therefore, Chinese and Russian corporations legitimate rights and interests cannot be effectively guaranteed. Therefore, the intentional swindles and some other unlawf...
