Chinese businesses suffer amidst Russian ruble collapse

Local residents in Russia do shopping at a supermarket. (Photo: news.hsw.cn)

(ECNS) -- Researchers have said that Chinese businesses would suffer from the Russian ruble's collapse, China National Radio reports.

Trade volumes and tourism between China and Russia are just some of the sectors to be affected by the drop. A Shenzhen company that exports cell phone accessories to Russia have seen its deliveries shrink significantly since September.

Russian tourists to the border city of Heihe, Northeast China's Heilongjiang province, have also dropped sharply since early November.

The ruble continued to plummet yesterday despite aggressive interest rate hikes by the Central Bank of Russia.

Tian Chunsheng, a researcher in Sino-Russian studies at the Chinese Academy of Social Sciences, said local small- and medium-sized enterprises would "suffer badly" in terms of border trade, as the ruble continues to plummet against the US dollar.

Ye Tan, a well-known economics commentator, has suggested establishing a free trade zone between China and Russia and adopting barter exchange to minimize risks while also maintaining trade growth momentum between both countries.

In October, the People's Bank of China, the country's central bank, signed a currency swap agreement worth 150 billion yuan ($24.4 billion) with the Russian central bank, to facilitate bilateral trade and investment.