Opinion: complementarity of Belarusian and Chinese economies contributes to bilateral ties
Doctor of Historical Sciences Valery Matsel, the Head of the Department of Economic Policy and Public Administration at the Academy of Management under the President of Belarus, believes mutual complementarity of economies contributes to the development of Belarusian-Chinese trade and economic relations. According to him, Aleksandr Lukashenko’s recent state visit to China and his negotiations with Chinese President Xi Jinping will become a new powerful impetus to activate all spheres of bilateral all-weather and comprehensive strategic partnership – primarily, trade and economic liaisons.
In 2022, Belarus-China trade turnover amounted to $5.79bn (113 percent against the 2021 level): exports made $1.61bn, and imports – $4.18bn.
“Belarus is a country with an open economy, more than half of its products are exported. In this regard, China is important for Belarus as the most capacious market, behind Russia. On the other hand, the Chinese market has been and remains one of the most highly competitive in the world. In this regard, the competitiveness of Belarusian products is the main condition for the growth of Belarusian exports to China," Mr. Matsel said.
According to the expert, a significant reason contributing to the dynamic development of Belarusian-Chinese trade and economic ties is the mutual complementarity of the countries’ economies. For example, the importance of food security for China is the reason for its interest in importing Belarusian potash fertilisers.
“The growth of China's population, the dynamic process of urbanisation, the increase in the standard of living of the population with limited land resources has significantly increased the demand for food in this country. At present, China – being a producer of about a quarter of the world's total agricultural output – is simultaneously forced to import significant volumes of certain types of food. In this regard, Belarus, with its well-developed agro-industrial complex and a high level of food self-sufficiency, is ready to assist. The country is already actively helping China solve the problem of food security. By the end of 2020, China was placed third among all buyers of Belarusian food – behind Russia and Kazakhstan," Mr. Matsel noted.
The expert added that the relevance of the Chinese vector for Belarus’ economic diplomacy has grown significantly due to a tough sanctions policy towards Belarus on the part of the collective West.
At the same time, as noted by Mr. Matzel, the promotion of Belarusian products to the huge Chinese market takes place in conditions of competition between Belarusian enterprises – both with foreign companies and Chinese manufacturers, “The current situation has inspired Belarusian enterprises, ministries, concerns and diplomatic missions in China to look for new niches for our exports. These have been found, and timber, dairy and meat products, and wood pulp have become new drivers of Belarusian exports’ growth to China, while potash fertilisers remained the main ‘city-forming’ export commodity.”
By the end of 2020, potash fertilisers, meat and edible offal of poultry, wood pulp, and whey were the key commodity items in the structure of Belarus’ exports to China. “The main drivers of Belarusian exports’ growth to China in 2021 were potash fertilisers, frozen beef, sawn timber, meat and edible offal of poultry, condensed and dry milk and cream, wood, sodium or sulphate pulp, whey, and rapeseed oil. Belarus is among the top ten suppliers of potash fertilisers (3rd place), whey (5th), chicken and beef (9th and 10th), rapeseed oil (10th) to China,” Mr. Matsel said.
In turn, Belarus’ imports from China include communication equipment and components, computers, bodies and spare parts for cars and tractors, hosiery, fabrics made of synthetic complex threads.
