Changes in the security sphere: prospects for cooperation between Russia and China

In 2023, the trade volume between Russia and China reached $240 billion, up 26.3% year-on-year.

Exports of goods from China to Russia increased by 47% to $111 billion. Meanwhile, merchandise imports from Russia to China grew by nearly 13%, reaching $129 billion. Russia maintained a trade surplus, but it dropped nearly twofold to $18.17 billion.

In the first seven months of 2024, trade between Russia and China reached $136.7 billion, a 1.6% increase from $134.5 billion in the same period last year. This data comes from a report by China's customs authorities. The increase in foreign economic activity between the two countries strengthens relationships across various sectors and actively involves social organizations.

Between 2024 and 2025, interest in technical defenses in Russia is expected to rise. This trend is driven by the increasing threats and challenges faced by various entities.

Key areas for development

Leading Russian and Chinese security companies have long maintained strong corporate relations on the international stage. Both countries are experiencing global trends in neural network development, impacting production and everyday life. Production capabilities are strengthening, technological equipment is becoming more efficient, and software solutions are expanding in functionality.

Smart Safe Cities projects are gaining funding and becoming a reality. In several countries, e-services are proving successful, enabling users to access data, retrieve documents, and make payments from home. Advances in software now enable efficient analysis of extensive event data, offering operators prompt recommendations.

Interactions between commercial partners have become faster and more diverse. Recently, phone calls, emails, and face-to-face meetings have become less relevant. Instead, messengers, video conferencing platforms, and social networks are increasingly integrated into daily activities.

Interaction models

Promising areas of cooperation between Russian and Chinese enterprises in technological safety devices for 2024-2025 include:

1. Collaboration in technology and knowledge sharing: Russian and Chinese enterprises are actively exchanging expertise, particularly in technical security. This enhances operations and strengthens their global competitiveness.
2. Collaborative manufacturing: Joint production of security products can reduce costs, increase output, and better address the needs of private and public customers.
3. Joint innovation: Collaboration on new safety equipment can result in innovative, high-demand products.
4. Expanding market presence for new products: Partnerships between Russian and Chinese firms facilitate market entry, customer base growth, and increased profitability, enhancing their local and international standing.
5. Employee exchange and training programs: Specialized training and employee exchange initiatives enhance professional skills and foster stronger corporate ties.

Russia & China: what's next?

International bank transfers between Russia and China play a crucial role in bilateral trade. Chinese financial institutions participate in global economic processes, but existing norms and restrictions currently slow trade relations between the two nations.

Recently, many firms have started using the Chinese yuan for international contracts, reflecting a shift in trade practices. This change has streamlined processes and enabled more accurate cost forecasting when goods arrive at buyers' warehouses in Russia.

Despite uncontrollable global factors, market participants must adapt and explore new avenues for growth. Some Chinese investors have extended lending periods for their Russian counterparts, while others are exploring joint ventures and equity partnerships. Additionally, some plan to establish branches in Russia, offering comprehensive services from delivery to payment processing. Meanwhile, others have adopted a wait-and-see approach, relocating operations to CIS countries.

These strategies enable small and medium-sized enterprises from Russia and China to expand their operations and explore investment opportunities in emerging markets.

Securika Moscow: The Future of Security Starts Now

The International Exhibition Securika Moscow, Russia's largest showcase of technical security solutions and fire protection equipment, provides a unique platform to find new clients and partners while exploring promising segments in the Russian security market.

Each year, dozens of Chinese manufacturers and suppliers participate in Securika Moscow to expand their market reach and boost sales. The event offers an excellent opportunity to connect with potential customers and partners, discover new suppliers, and gain insights into the industry.

At Securika Moscow 2024, the Chinese pavilion featured a diverse range of companies, including Tiandy, FANVIL, Leksell, Phonemax, Wireless Tek Technology Limited, and many others.