Tkachenko M. Business relationship between Ukraine and China 2015-2018 // International scientific journal "Internauka". — 2019. — №1. https://doi.org/10.25313/2520-2057-2019-1-4626
Huazhong University of Science and Technology
Major: International Trade
School of Economics
Ткаченко Максим Андрійович
Університет Хуачжуна науки і техніки
Спеціальність: Міжнародна торгівля
BUSINESS RELATIONSHIP BETWEEN UKRAINE AND CHINA 2015-2018
БІЗНЕС-ВІДНОСИНИ УКРАЇНИ ТА КИТАЮ 2015-2018
Summary. At the article the characteristic of Ukrainian-Chinese business cooperation was carried out. Also, here were considered the common interests and goals between Ukraine and China. The article represents the analysis of the structure of trade between Ukraine and China, Ukrainian exports and imports to the PRC, Chinese exports and imports, an analysis of interregional cooperation, analysis of the results of economic exhibitions and fairs. At the end of the article there are some recommendations for intensifications of Ukrainian-Chinese business relationship.
Key words: China, Ukraine, business, business relationship, state, partner, cooperation, import, export.
Анотація. У статті проведено характеристику українсько-китайського ділового співробітництва. Також тут були розглянуті спільні інтереси та цілі України та Китаю. У статті представлено аналіз структури торгівлі між Україною та Китаєм, українського експорту та імпорту до КНР, китайського експорту та імпорту, аналізу міжрегіонального співробітництва, результати аналізу результатів економічних виставок та ярмарків. Наприкінці статті наведені рекомендації щодо активізації українсько-китайських ділових відносин.
Ключові слова: Китай, Україна, бізнес, ділові відносини, держава, партнер, співпраця, імпорт, експорт.
Introduction. In 2017, Ukraine and China celebrated the 25th anniversary of mutual diplomatic recognition – bilateral relations were established on January 4, 1992, shortly after Ukraine gained independence. Today, Ukraine and China have all the opportunities to realize the significant potential of bilateral cooperation. The peoples of our countries are hoping for an active and effective position of all power structures to solve the urgent tasks of the Ukrainian-Chinese interaction.
Statement of basic materials. It is proved that the Ukrainian-Chinese trade and investment cooperation, subject to the establishment of an effective system of foreign economic activity management and the rational use of all its capabilities, has significant prospects for development. In the near future, while maintaining the existing problems listed, we should expect a decrease in the volume of foreign trade between the countries, which is due both to a decrease in the level of the Ukrainian economy and, consequently, incomes of citizens, and a reduction in the number of own new production in the PRC. Currently, besides raw materials, metallurgical products, aviation industry, etc. are in demand on the Chinese market. And due to its geographical location, Ukraine can be useful for China as a provider of transportation services, which is due to the growing interest from China Silk Road.
For Ukraine, the direction of relations with the PRC is a priority, due to the rapid economic development of the country, which has already become a major player in the Asia-Pacific region (APR) and is the second largest economy in the world after the US.
At this article, we subdivided common interests and goals between Ukraine and China at the table 1:
Common interests and goals between Ukraine and China
Ukraine for China
China for Ukraine
Analysis of the structure of trade between Ukraine and China shows that the main products supplied to the Chinese market in 2015 were: cereals (30%), fats and oils of animal or vegetable origin (18%), ores, slags and ash (43%), the dynamics of which in recent years remains volatile. Commodity trade accounts for about 98% of the total bilateral trade.
Ukrainian exports to the PRC are characterized by a narrow range of goods, dominated mainly by raw materials, food products, and grain crops. The insignificant amount of exports of ferrous metals is directly related to the build-up of its own production facilities in the PRC and a decrease in the competitiveness of the main article of Ukrainian exports, due to the significant cost of its production.
In the structure of imports from the PRC in 2015, product groups of the final production prevailed - these are: electrical machines and equipment (23%); boilers, machinery, apparatus and mechanical devices (16%); polymeric materials, plastics (6%), shoes (4%); products from ferrous metals (3%). Also, there is an expansion of the range due to household electrical appliances, computers, office equipment.
An analysis of interregional cooperation shows that Chinese businessmen establish relations in those regions or cities where producers of non-ferrous, ferrous metals and metal products are concentrated (Dnipropetrovsk, Rovno), leading machine-building centers (Kharkiv, Zaporizhia, Odessa, Kiev, Rovno), centers of the chemical industry (Sumy, Gorlovka, Odessa, Dneprodzerzhinsk, Cherkasy, Rovno, Severodonetsk, Chernivtsi). They are also interested in the sphere of aircraft manufacturing in Ukraine, in particular, assistance in modernizing and supporting aircraft of the AN class, because Ukraine is one of nine countries in the world capable of designing and building airplanes independently, could not fail to attract the attention of the country, which, according to experts, when successfully attracting investment, will become the leading economies of the world, ahead of the world leader - the United States.
Analysis of the results of economic exhibitions and fairs, as well as scientific publications, allows us to conclude that Chinese partners are interested in implementing a number of economic initiatives in investment and innovation spheres:
At the same time, the Ukrainian side also has a number of interests, namely:
Conclusion and recomendations. Intensification and diversification of business cooperation between Ukraine and China is promising. Ukraine and China have significant potential for further expansion of cooperation, since they have mutual interests in many areas. For the intensification of the business cooperation of countries, we can give the next recommendations: