Chinese business owners face new challenges in Russia

World
Europe

04:02

By CGTN's World Insight

The 22th St. Petersburg International Economic Forum is just around the corner. People taking part in the forum expect to see useful ideas that could help with the recovery and growth of the world economy. One of them is Xing Zhenli, a Chinese pioneer based in Russia.

Xing is the manager of Harbin Restaurant, the first Chinese food chain restaurant in Russia.

CGTN host Tian Wei accompanied Xing to a local vegetable wholesale market to purchase vegetables and fruits she needed for her restaurant.

CGTN host Tian Wei shops at a local vegetable wholesale market in Russia. / CGTN Photo

They spent almost the entire morning at the market and later went to check Xing's restaurant during the lunch rush hour. Xing shared her struggles during economic hardship in Russia after Western sanctions and a protracted recession, and the new challenges the Chinese business owners in Russia have to deal with each day.

"The economic situation has not been too optimistic in Russia recently. Thus doing business became harder compared to a few years ago," said Xing. She added, "The best time was about five to six years ago. We had 23 restaurants at that time, but now only eight are left." To cut costs, Xing had to shop for her food at a wholesale price.

The restaurant business was undoubtedly affected by Russia's economy, as it was hit on two fronts in recent years: falling prices for crude oil and Western sanctions. Because of the country's self-dependence, the economy has been showing slow signs of recovery since late last year.

Chinese restaurant owner Xing Zhenli shops at a wholesale market in Russia./ CGTN Photo

Xing explained, "After the sanctions, Russia had to be more self-reliant, and prioritize the development of agriculture and the manufacturing industry".

Chinese business owners in Russia have also been evolving all these years. "Eighty to 90 percent of Chinese businessmen here used to do international trade. The situation is different now. Now, we have Italian restaurants, Japanese restaurants, so many Chinese restaurants, German restaurants, French restaurants and various bars and cafes," said Xing.

World Insight with Tian Wei is a 45-minute global affairs and debate show on CGTN. It airs weekdays at 10:15 p.m. BJT (1415GMT), with rebroadcasts at 4:15 a.m. BJT (2015GMT).