China will make use of the Russian port Vladivostok near the border as a transit hub for domestic shipments of goods from its northeast Jilin Province to the eastern parts of the country to bring down the transport costs.
China has approved Vladivostok in Russia as a cross-border transit port for domestic trade shipments, the move aimed at implementing the national strategic plan to revitalise Northeast China's industrial base and facilitate the cross-border transport of domestic trade goods with the use of overseas ports, official media quoted Chinese customs announcement.
The agreement which will take effect in June, provides China a shorter and cheaper route to transport goods from its northeastern region to its eastern economic powerhouse, of Zhejiang province, the Hong Kong based South China Morning Post reported.
The agreement will make the Russian port, in essence, a domestic Chinese port for Jilin, from where the goods will be shipped by rail or truck to the port with no tariffs nor taxes incurred, it said.
By transporting goods through Vladivostok in the future, the land transportation distance can be shortened by more than 800 kms, and the cost will be greatly reduced for Chinese goods, state-run Global Times reported.
China-Russia reached the agreement to use the Vladivostok as the two countries continue to firm up their ties in the midst of Ukraine war with Beijing increasing its trade and economic ties with Moscow, especially by buying cheaper Russian oil.
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