Belarus might supply products to China via commodity exchange
23 July 2018
MINSK – The Belarusian Universal Commodity Exchange (BUCE) and China's Zhongqiao Silk are in talks over supplies of Belarusian timber and agricultural products to China, BelTA learned from the press service of the BUCE.
Zhongqiao Silk corporation from China's province of Shaanxi specializes on wholesale supplies of imported products to central regions of China. The company is interested in purchasing timber and agricultural products via the commodity exchange and is ready to help the BUCE set up its office in Shenzhen or Hong Kong.
The Chinese corporation views Belarus as part of the common market of the Eurasian Economic Union. Therefore, the commodity exchange can become a link between China and the EAEU attracting the bulk of commodity flows. The experience shows that the most common difficulties arise in logistics, customs clearance and calculations. Therefore, the Chinese corporation suggests taking on these issues and assisting the BUCE in opening a representative office in China. This is expected to encourage more Chinese companies to take part in stock trading and to raise the appeal of electronic commodity exchanges.
According to Deputy Chairperson of the BUCE Board Irina Narkevich, the most optimal way to start cooperative activities is using an electronic platform where industrial and consumer goods are traded. This segment of the commodity exchange specializes mostly on ready-made goods.
“Our platform is universal and multipurpose. It has great capacities and can be easily adjusted to suit the needs of the Chinese market. It is equally good as an instrument for exporting Belarusian goods to China and importing Chinese goods in Belarus and other EAEU member states. The proposal to open a BUCE office in China needs careful deliberations. We have a time-tested algorithm of working with foreign partners; therefore, we suggest that you consider getting accredited at the BUCE as a broker. This will allow you to represent the interests of the BUCE in China and invite Chinese companies to take part in the trading,” Irina Narkevich said addressing the Chinese company.
The parties agreed to elaborate a list of Belarusian products that sell well in China and Chinese products that are popular in Belarus but are distributed via various intermediary structures. Such products can be purchased directly from the manufacturer using the instruments of the commodity exchange.