Parallel imports through China: Pros and cons

Mikhail Mishustin, Prime Minister of the Russian Federation, explained that the key goal of this mechanism is to satisfy the demand of the population for imported goods resulting from intellectual activity. We will remind, earlier in the country it was impossible to sell goods without the official permission of the owner of the trademark.

In connection with the established international relations, parallel imports in 2022 became a necessary measure for the Russian economy. It should be noted that for many decades these schemes have been used by many other countries, from Latin American states to the United States and EU countries. The main advantages of parallel imports through China are the following factors:

• Strengthening economic, financial and trade ties;
• It will be possible to avoid a shortage of most of the necessary goods, including components, spare parts, building materials and components for other sectors of the Russian industry;
• Curbing prices from a spike in the domestic market;
• The Russian consumer will be able to buy imported goods in a shorter time;
• Growth of "healthy" competition and more choice and buyers;
• Prospects for developing new lines of business or starting your business from scratch.

But, some economists argue, there are a few downsides to parallel imports through China. In their opinion, the import of a wide list of goods under this scheme can lead to a number of negative consequences. First, the ruin of small firms and companies or their "takeover" by larger business structures. Secondly, a slowdown in the development of domestic production. Thirdly, the quality standards of the trademark will become more blurred. Fourth, the confusion with pricing. It can also be ruled out that according to the parallel import scheme, low-quality fakes will be imported into the country.

For several decades, China has been one of Russia's most important strategic partners in the field of financial and economic relations, and these ties are only strengthening every year. Today, in light of the current situation, it is important to fill the Russian market with the necessary groups of goods as quickly as possible, including the list of products approved by the Ministry of Industry and Trade of the Russian Federation for import as part of parallel imports. There is another important point here - parallel imports through China require the development of new logistics routes and interaction schemes between all participants in the process. CargoBing, one of the largest Chinese logistics companies, provides a wide range of services for finding reliable suppliers of all types of products from China and other countries of the world to Russia. Extensive experience, high qualifications of specialists, a developed material and technical base and knowledge of the peculiarities of the domestic market and all innovations in international trade law make cooperation with a logistics company as convenient, reliable and economically profitable as possible.