Abstract: After Kazakhstan gained independence in 1992, the relationship between China and Kazakhstan has made a qualitative leap, from friendly and mutual assistance to strategic cooperation and partnership. China and Kazakhstan are geographically adjacent. The complementary advantages of resources provide a good external environment for bilateral trade. Therefore, Kazakhstan and China have made significant progress in bilateral trade. Both countries are actively promoting the trade facilitation process. In 2015, Kazakhstan joined the WTO and signed bilateral trade agreements, which made Kazakhstan’s foreign trade more transparent and standardized. One belt, one road strategy, is China and Kazakhstan. The Sino foreign trade policy is more convenient and the infrastructure construction of customs is more perfect. The two countries have developed long-term foreign trade in the framework of Shanghai cooperation system. Promoting trade facilitation can not only help expand foreign trade between the two countries, but also provide the two sides with scarce resources, to achieve the goal of trade complementarity and promote the economic development of the two countries.
This document mainly introduces the current situation in the field of trade facilitation between China and Kazakhstan from the aspects of the structure of bilateral trade, the scale and growth rate of bilateral trade, and the model of bilateral trade cooperation, regional distribution of bilateral trade cooperation between China and Kazakhstan, as well as the main characteristics of bilateral trade between China and Kazakhstan.
Key words: Trade facilitation; foreign trade
1) The meaning of trade facilitation
At present, trade facilitation between China and Kazakhstan has played a very important role in developing national trade and promoting the development of the national economy. With the development of international market integration, in the past ten years, the issue of trade facilitation has always been the WTO Part of the impermanent trade negotiation plays a very important role in the development of various international conferences. The main purpose of trade facilitation is to reduce the cost of international trade and provide protection for international trade. More specifically, trade facilitation is carried out through bilateral or multilateral negotiations. Reach a consensus on the international trade process, implement bilateral or multilateral tariff policies by simplifying procedures, and realize the exchange of information and documents between the earlier partners in the supply chain.
The definition of trade facilitation is consistent with the definition of trade facilitation of the United Nations Economic Commission for Europe. It points out that trade facilitation means «simplification and standardization of procedures, coordination and automation, as well as the transfer of goods from seller to buyer and settlement information, which eliminates the promotion of Bureaucratic obstacles to the cross-border movement of goods.
The new WTO agreement also defines trade facilitation, providing special procedures for communication and handling related practices. The scope of the definition is relatively large.
From the definition of trade facilitation, it can be seen that trade facilitation is an advantage for both parties in trade. It is an international trade method to achieve a win-win trade. It is also widely used in international trade and is reached by both parties. Consistent, so to save trade costs, provide goods turnover speed, and better promote the development of international trade.
2) Overview of China-Kazakhstan trade facilitation
Commodity trade structure refers to the ability to calculate the total amount of foreign trade of specific commodities in a specific period according to certain classification standards, so to obtain the share of such commodities in the total foreign trade of goods. Through the bilateral trade structure, this may reflect the level of economic development of a country or region, and the comparative advantage products between two countries can be seen. The structure of foreign trade in goods includes the structure of foreign trade methods, the structure of foreign trade models and the regional structure of foreign trade.
According to the classification of the commodity structure of Kazakhstan, it can be seen that the products exported from Kazakhstan to China are mainly raw materials, including copper, aluminum, cotton, fuel, wool and mineral products, natural gas pipelines, etc., which are imported into China. Most of the commodities are consumer goods, including textiles, knitwear and ceramic products. With the continuous economic development of the two countries, the types of resource demand are also changing, which has an impact on the bilateral trade structure of the two countries, but in general the bilateral trade of consumer products and energy and resource products is still complementary advantage.
Kazakhstan is located in the heart of the Eurasian continent and does not border the sea. It is a typical inland country. There is no HNA to transport bulk goods on the border. It is difficult for domestic goods to be transported out, and foreign goods are difficult to transport in, which hinders Kazakhstan from abroad. Economic and trade development, and access to the international market through land transportation from neighboring countries is the only option for Kazakhstan to enter the international market. This determines that Kazakhstan attaches great importance to maintaining good-neighborly and friendly cooperative relations with neighboring countries in the development of international trade.
From the geographical point of view, Kazakhstan is a country along the Silk Road and is geographically connected to China. In addition, the length of the common border between the two countries exceeds 1,700 kilometers. There are currently five checkpoints, which are the meeting point for mutual exchange and cooperation between the border residents of the two countries. In addition, there are more than one million Kazakhs in China. The strong cultural identity has also deepened the trust of businessmen of the two countries and provided cultural support for China-Kazakhstan trade cooperation.
3) China-Kazakhstan Border Cooperation Center Trade Facilitation
China-Kazakhstan trade cooperation, due to the geographical proximity of the two countries, provides unique geographical conditions for the development of border trade. From the perspective of location, the Khorgos border port is located in the middle of the Eurasian Continental Bridge.
Khorgos Port is located at the intersection of the Central Asian Economic Belt and the Eurasian Economic Belt. It is rich in resources and has a huge market potential. It is the closest port to the economic centers of five Central Asian countries. The border port of Khorgos effectively covers the markets of five countries in Central Asia and continues to trade with Europe, West Asia and other countries. This is a springboard for China to open up to the West. In terms of transportation, the land and air transportation at the border port of Khorgos is very convenient. It is located at the end of China’s National Highway 312, 366 kilometers away from Almaty, the economic center of Kazakhstan, and 660 kilometers away from Urumqi, China. Most of the road sections are expressways. The road conditions are good, which saves cargo transportation time and is away from China’s second Eurasian continent Railway Bridge Yining Airport is 90 kilometers away. The Khorgos border port not only effectively connects Kazakhstan and optimizes the border trade between the two countries, at the same time, the Khorgos port is used as a link to promote the development of bilateral trade between China and Kazakhstan.
From the perspective of the trade environment, although the Khorgos Port is located in western China, the natural conditions along the route are good. The population cities on both sides of the port are relatively large. The residents of both sides are mainly Kazakhs. The unity of language has deepened the relationship between the two countries. The cultural identity between the two countries has promoted the economic development of both countries.
In terms of resources, the five countries in Central Asia have abundant oil and gas reserves and various mineral resources. China’s electromechanical and manufacturing products such as the textile machinery industry are also necessities for economic development and people’s lives in Central Asia. This complementary advantage of resources and trade makes the two countries. There are strong complementary activities in economic development and trade exchanges, thus promoting the economic development of China and Kazakhstan.
In short, in the study of trade facilitation between China and Kazakhstan, the author only analyzes the port passage efficiency, e-commerce operation environment, regulatory environment, cooperation between China and Kazakhstan, and the implementation of national policies. In order to understand the development status of trade facilitation between China and Kazakhstan, and provide countermeasures and suggestions based on the existing problems in the current development. Of course, there are many factors affecting trade facilitation between China and Kazakhstan. This article only selects the most representative factors. With the development of trade facilitation between China and Kazakhstan, it will provide more opportunities for the economic development of China and Kazakhstan.
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1Vyacheslav Burkov – Master of Economics, Department of World Economy, Xinjiang University, Urumqi city