Chinese delegation heads to Moscow for talks on smuggling probe

A Chinese delegation left for Moscow on Wednesday to discuss the case involving about 150 Chinese businesspeople seized during a crackdown at the Cherkizovsky Market in the Russian capital. China says it fully supports Moscow's crackdown on illegal business activities. But one expert also suggests the two countries should make efforts to secure their growing trading ties. Our reporter Wang Ling has more.

Reporter: The delegation consists of senior officials from the ministries of commerce and foreign affairs, the General Administration of Customs as well as trade officials from Zhejiang and Fujian provinces. They will hold talks with their Russian counterparts about the incident that inflicted losses on thousands of Chinese businesspeople involved in the case.

The detainments of about 150 Chinese came a couple of weeks after Russian authorities destroyed $2 billion worth of Chinese goods as part of its crackdown on "gray customs clearance" trade activities.

The Chinese delegation hopes to reach a solution to the issue, which has been a sticking point that has negatively affected the two countries' trade relations for many years.

Jiang Yi is an expert on Russia at the Chinese Academy of Social Sciences.

"Because there is gray customs clearance in Russia, Chinese traders have very few chances to go through the official customs procedures. So it leaves many Chinese businesspeople in Russia pretty vulnerable when the local authorities launch a raid. On the other hand, gray customs clearance also has an impact on Russia's tax revenue and foreign currency reserve and hurts the growth of local markets and domestic industries."

Jiang says closing the Cherkizovsky Market is an attempt by Russian authorities to crack down on smuggling, but the Russian government should make more thoughtful moves regarding all parties involved in gray customs clearance.

"The Russian government shouldn't have allowed the gray customs clearance to be practiced at all. On the other hand, it is possible for Russia to make more careful decisions to take care of both sides' interests."

Jiang also suggests Chinese traders be more cautious about potential risks and be prudent in their decisions to develop business opportunities overseas.

Wang Ling, CRI news.