Opening up or closing the door for foreign trade – Russia and China compared

Abstract

The phenomenal economic growth in China and relative decline in Russia have made these two emerging economies more similar during the last quarter of the century. Both are large, middle-income countries dependent on foreign trade and burdened with many structural problems that partly stem from their communist past. The domestic structural issues may indeed explain most of the apparent growth slow-down in both of these economies. This short note argues that a significant difference between the two is visible in trade policies. As China is sticking to the “Opening up and reform” policies, Russia is becoming increasingly protectionist. These differences have become increasing visible since the global financial crisis.