Analysis of the current situation of agricultural trade development between China and Ukraine


Zhang Fenghe
Henan Institute of Science and Technology
China

Abstract


https://doi.org/10.22004/ag.econ.302966


Purpose. As a European granary, Ukraine has rich agricultural resources. China is a country with a large population and has a large demand for food. However, the agricultural trade between the two countries has only achieved rapid development in recent years, and is not closely linked in related trade areas. This article studies the current situation of agricultural trade between the two sides, analyzes the trade data, finds out challenges, and provides suggestions for further promoting trade cooperation between the two sides.

Methodology / approach. The categories 1, 2, 3, and 4 under the HS Code of the General Merchandise Trade Statistics Database of the People’s Republic of China are used as agricultural trade statistics categories with a time span of 2014–2019 trade data. The relevant data of agricultural product trade are sorted and there is statistics, which objectively explain the current status of trade exchanges between the two sides; the results of the analysis of the trade data are put forward, and the problems existing in the development of China-Ukraine trade and the factors affecting the development are raised.

Results. According to the results of the analysis, from 2014 to 2019, China’s agricultural products imported from Ukraine accounted for 45.5 % of the total import trade. Agricultural products occupy a very important position in China’s import trade from Ukraine in terms of trade scale. Among them, the import of cereals and other products accounted for 95.7 % of the total imported plant products. Ukraine, the European granary, has become China's main food importer. In 2019, China replaced India as the largest food importer of Ukraine; In terms of export trade, mechanical and electrical products, base metals and light industrial products occupy an important position. From 2014 to 2019, China’s agricultural exports to Ukraine accounted for only 2.6 % of the total export trade, which is a small share. This shows that China and Ukraine have strong complementarity in terms of total trade volume and agricultural product trade. In the future, the two countries can further strengthen cooperation to expand their own advantages and better promote the development of trade between the two countries.

Originality / scientific novelty. Due to the geographical distance between China and Ukraine, the political instability of the post-independence republic as a former Soviet Union led to less economic and trade exchanges between Ukraine and China. Scientists did not study much on economic and trade relations between China and Ukraine. Most of the research deal with macro trade policy aspects, but the innovation of this article lies in the use of statistical data for empirical analysis, to show the current status of trade between the two sides, and to make recommendations for the further development of bilateral trade.

Practical value / implications. Since the establishment of diplomatic relations between China and Ukraine in 1992, the relations between the two countries have developed smoothly. In 2011, the two countries established a strategic partnership of cooperation. Subsequently, trade cooperation in various fields has continued to develop, especially in the agricultural product trade. In recent years, total agricultural trade has doubled. In 2019, China became the largest importer of Ukrainian agricultural products. After China proposed the implementation of the «Belt and Road» initiative, Ukraine actively participated in the «Belt and Road» framework agreement. The research on agricultural trade between the two sides will be of great significance to promote further and deeper cooperation between the two sides in the field of agricultural trade and expand and create a wider development space.


Keywords


agricultural trade; total trade; export; import; China; Ukraine.

Full Text:

PDF

References


Boysen-Urban, K., Brockmeier, M., Jensen, H. G. and Boysen, O. (2020), Measuring the trade restrictiveness of domestic support using the EU Common agricultural policy as an example. Journal of Agricultural Economics, vol. 71, no. 1, pp. 27–49. https://doi.org/10.1111/1477-9552.12337.

Kotykova, O. and Babych, M. (2019), Limitations in availability of food in Ukraine as a result of loss and waste. Oeconomia Copernicana, vol. 10, no. 1, pp. 153–172. https://doi.org/10.24136/oc.2019.008.

Chebbi, H. E. and Olarreaga, M. (2019), Investigating exchange rate shocks on agricultural trade balance: the case of Tunisia. Journal of international trade & economic development, vol. 28, no. 5, pp. 628–647. https://doi.org/10.1080/09638199.2019.1572774.

Carey, M. (2019), The Common agricultural policy’s new delivery model post20: national administration perspective. EuroChoices, vol. 18, no. 1, pp. 11–17. https://doi.org/10.1111/1746-692X.12218.

Nagyová, L., Horáková, M., Moroz, S., Horská, E. and Poláková, Z. (2018), The analysis of export trade between Ukraine and Visegrad countries. Economy and Management, vol. 21, no. 2, pp. 115–132. https://doi.org/10.15240/tul/001/2018-2-008.

Ivanyshyn, V., Bilyk, T. and Kucher, O. (2018), Marketing strategy formation for the development of organic production in the Ukraine. Economic Sciences for Agribusiness and Rural Economy, vol. 1, pp. 34–39. https://doi.org/10.22630/ESARE.2018.1.3.

Kozlovskyi, S., Grynyuk, R., Baltremus O. and Ivashchenko, A. (2017), The methods of state regulation of sustainable development of agrarian sector in Ukraine. Problems and Perspectives in Management, vol. 15, no. 2-2, pp. 332–343. https://doi.org/10.21511/ppm.15(2-2).2017.03.

Kenderdine, T. (2018), Insurance plus futures: agricultural commodity price reform in China. Asia & the Pacific Policy Studies, vol. 5, no. 2, pp. 331–346. https://doi.org/10.1002/app5.226.

Wang, X., Qiang, W., Niu, S., Liu, A., Cheng, S., Li, Z. (2018), Analysis on global agricultural trade network and its evolution. Journal of Natural Resources, vol. 33, no. 6, pp. 940–953. https://doi.org/10.31497/zrzyxb.20180403.

O’Donoghue, J., Roantree, M. and McCarren, A. (2017), Detecting feature interactions in agricultural trade data using a deep neural network in Big Data Analytics and Knowledge Discovery, eds. L. Bellatreche, S. Chakravarthy. Lecture Notes in Computer Science, vol. 10440. Springer, Cham. https://doi.org/10.1007/978-3-319-64283-3_33.

Gollisch, S., Hedderich, B. and Theuvsen, L. (2016), Reference points and risky decision-making in agricultural trade firms: a case study in Germany, Diskussionsbeitrag, No. 1609, Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE), Göttingen.

Chand, R. and Saxena, R. (2017), Agricultural trade between India and Pakistan: status and potential. India-Pakistan Trade Normalisation in India-Pakistan Trade Normalisation, eds. N. Taneja, I. Dayal, Springer, Singapore. https://doi.org/10.1007/978-981-10-2215-9_2.

Erokhin, V. and Gao, T. (2018), Competitive advantages of China’s agricultural exports in the Outward-Looking Belt and Road Initiative in China’s Belt and Road Initiative, eds. W. Zhang, I. Alon, C. Lattemann. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-75435-2_14.

Tao, L. (2016), Green trade barriers with our country agricultural product export trade. Science Innovation, vol. 4, no. 3, pp. 168–171. https://doi.org/10.11648/j.si.20160403.19.

Klasen, S., Meyer, K. M., Dislich, C. (2016), Economic and ecological trade-offs of agricultural specialization at different spatial scales. Ecological Economics, vol. 122, pp. 111–120. https://doi.org/10.1016/j.ecolecon.2016.01.001.

Zhao, Y. and Cao, N. (2017), Research on traceability of agricultural products based on internet of things, 2017 IEEE International Conference on Computational Science and Engineering (CSE) and IEEE International Conference on Embedded and Ubiquitous Computing (EUC), Guangzhou, pp. 414–417. https://doi.org/10.1109/CSE-EUC.2017.264.

Kiforenko, O. (2016), Agroholdings as the subjects of the economy globalization – the example of Ukraine. Problems of World Agriculture, vol. 16(31), pp. 169–178. https://doi.org/10.22004/ag.econ.253051.

Borodina, O. and Krupin, V. (2017), Is it possible to utilise the agricultural potential of Ukraine under the current agrarian system? Euro Choices, vol. 17, no. 1, pp. 46–51. https://doi.org/10.1111/1746-692X.12151.

Murova, O. (2015), Agricultural land policy of Ukraine: state legislation and efficiency analysis in Transition to Agricultural Market Economies: The Future of Kazakhstan, Russia and Ukraine, eds. A. Schmitz, W. H. Meyers, Chapter 20, pp. 204–215. https://doi.org/10.1079/9781780645353.0204.

Lysak, O. and Andreeva, L. (2017), Problems and prospects of Ukraine’s export of agricultural products. Agricultural and Resource Economics, vol. 3, no. 1, pp. 139–151. https://doi.org/10.22004/ag.econ.256886.


Refbacks

  • There are currently no refbacks.


This journal is published under the terms of the Creative Commons Attribution Licens 4.0 International (CC BY 4.0).

 

© Agricultural and Resource Economics, 2015–2020.

Open Science in Ukraine

Open Science in Ukraine