Page 96 - RusRPTApr24

The U.S. and UK are reviewing more than $20 billion of cryptocurrency transactions that passed through a Russia-based virtual exchange Garantex, Bloomberg News reported on Thursday citing people familiar with the matter.
China stepped up efforts to create a trading system independent of the West This conclusion was reached by the Financial Times after analyzing trade statistics from the IMF. As of October 2023, nearly 40% of China's exports ($1.3 trillion) over the previous 12 months went to 28 countries and territories with which Beijing has signed free trade agreements. These include Japan, South Korea, Vietnam, Malaysia, Singapore, Thailand, Indonesia, the Philippines, Chile, Pakistan, Cambodia, New Zealand, Switzerland, Serbia, and Georgia. None of the agreements involve the USA or EU member states as third parties.
Industry experts emphasize that China is deliberately trying to shift the balance of exports, redirecting trade flows from the USA and EU to friendly states. China's exports to ASEAN countries have already exceeded those to the USA, and the total volume of supplies to all countries involved in the "One Belt, One Road" initiative surpassed the combined figure for the USA, Japan, and the European Union. Beijing continues negotiations on creating FTA with the UAE, EEU, Saudi Arabia, Israel, Panama, Kuwait, Norway, Oman, Sri Lanka, Qatar, Bahrain, Moldova, and Palestine. These states (excluding the EEU) account for about 4% of Chinese exports. Trade agreements with Canada, Bangladesh, Colombia, Mongolia, Nepal, Papua New Guinea, and Fiji (about 3% of exports) are in the preliminary consideration stage.
The central element of developing trade relations has been a $1 trillion investment program under the "One Belt, One Road" infrastructure initiative, covering more than 140 countries. Over the last few years, Beijing has significantly increased investments in the Global South and sharply reduced investments in Western countries. China's developed network of bilateral and regional FTAs, in turn, lowers tariff barriers in trade and stimulates mutual direct investment flows. According to Henry Gao, the first Chinese lawyer at the WTO Secretariat, if the "mandate of the trade organization for the liberalization of global trade is to be revised," the backup architecture will partially preserve the established connections and continue to function based on Beijing's national interests.
The FT article was published on the eve of the 13th Ministerial Conference of WTO member countries in Abu Dhabi on February 26-29. Since 2009, the WTO has effectively ceased to function as a dispute resolution body due to US obstruction. According to UN data, the volume of global trade last year decreased by 5% compared to the peak level of 2022. The organization notes that the decline occurs amid the formation of a new trend - "supporting friends," where states prefer trading partners based on political considerations.
96 RUSSIA Country Report April 2024 www.intellinews.com