Russian President Putin announced on November 18th that Russia will soon implement reciprocal visa free measures for Chinese citizens. This decision marks a new breakthrough in the facilitation of personnel exchanges between China and Russia, and will also have a significant impact on the field of cross-border trade.

01 Visa free policy: A new chapter in China Russia economic and trade relations

Not long ago, China implemented a unilateral 30 day visa free policy for Russian ordinary passport holders from September 15, 2025 to September 14, 2026, applicable for business, tourism, visiting relatives and friends, etc. After the implementation of this visa free policy, Russian passport holders who come to China for business, tourism, visiting relatives and friends, exchange visits or transit for no more than 30 days can enter without a visa. This policy is seen as a sign of closer ties between China and Russia.

Putin stated that this will have a significant impact on the economic and cultural exchanges between the two countries, significantly promote exchanges between the two peoples, and actively promote the rapid development of bilateral relations.

For China's cross-border e-commerce, this undoubtedly opens up a more convenient channel to the Russian market. The visa free policy has made the "just leave" business inspection a reality. Russian buyers can come to China at any time to inspect the market, participate in exhibitions, communicate face-to-face with partners, and greatly improve cooperation efficiency.

02 The "Platinum Era" of Cross border E-commerce

In recent years, the cross-border e-commerce trade volume between China and Russia has shown explosive growth. From 43 million yuan in 2018 to 6.65 billion yuan in 2024, in just six years, the cross-border e-commerce trade volume in Hunchun alone has achieved a hundredfold growth, becoming a strong driving force for regional economic development.

The overall size of the Russian e-commerce market is also rapidly expanding. Data shows that from 2019 to 2024, the size of the Russian e-commerce market has increased from approximately 2 trillion rubles to nearly 10 trillion rubles, with most of this growth coming from China.

The price advantage of cross-border e-commerce between China and Russia was once an important factor driving growth. Due to institutional differences in the tax system, Chinese sellers generally sell similar products at prices 50% -100% lower than local Russian merchants, occupying 62% of the market share in categories such as clothing, footwear, and electronic products.

The flourishing development of logistics arteries in 03

With the implementation of visa free policies, the logistics network between China and Russia is rapidly expanding. As one of the largest domestic logistics and express delivery companies in Russia, CDEK not only has over 3000 self pickup points in Russia, but also has more than 2600 agency offices in 25 countries, with over 60 in China.

04 Tax Reform and Market Transformation

However, while the visa free policy brings convenience, the tax environment for cross-border e-commerce in Russia is undergoing significant changes.

In recent years, the continuous protests of local businesses in Russia have finally leveraged regulatory changes. The draft reform of value-added tax on cross-border online shopping products, released by the Russian Ministry of Finance in October 2025, outlines a clear roadmap for tightening the tax system. According to the draft, starting from 2027, Russia will gradually increase the value-added tax on cross-border goods in stages, with the tax rate gradually rising from 5%. By 2030, it will reach 20%, which is on par with domestic enterprises; At the same time, the tax-free limit will gradually decrease from the current 200 euros to 50 euros, and eventually be completely abolished.

This means that the profit margins of small and medium-sized sellers who used to rely on "tax avoidance through splitting orders+low price volume trading" will be significantly compressed, and the competition in cross-border e-commerce will shift from a "price war" to a "value war".

05 New Trends in Cross border Trade

Under the dual influence of visa free policies and tax reform, cross-border e-commerce between China and Russia is showing a series of new trends. More than 95% of trade settlements between China and Russia are conducted in rubles and Chinese yuan, avoiding the use of US dollars and greatly reducing exchange rate risks and transaction costs for both parties. This "de dollarization" financial ecosystem provides a more stable operating environment for cross-border enterprises.

The integration of business investigation and tourism has become a new growth point. After the implementation of the visa free policy, the number of Russian buyers visiting the store increased by 180% month on month.

Localized operation has become the core competitiveness. Against the backdrop of tax reform, the competitive advantage of Chinese sellers will shift from "tax planning" to product differentiation, localized operations, and compliant financial and tax planning.

06 Future Prospects and Strategic Suggestions

Faced with new opportunities and challenges in the Russian market, Chinese cross-border sellers need to adjust their strategies in a timely manner.

Deeply cultivate segmented fields and build core competitiveness. In the Russian market, companies should focus on a specific niche area and concentrate resources to build their core competitiveness.

Utilize e-commerce platforms to expand sales channels. Russia is one of the countries with the fastest development in global e-commerce, with local e-commerce platforms such as Ozon and Wildberries dominating. Chinese companies can quickly reach Russian consumers by joining these platforms or leveraging third-party service providers.

Establish a localized team to improve operational efficiency. Enterprises should consider setting up offices or branches locally and forming a professional team familiar with local culture and business rules. This not only allows for a better understanding of changes in market demand, but also enables timely response to customer feedback.

The visa free policy will accelerate the deep integration of China and Russia in the field of cross-border e-commerce. With the continuous changes in the market environment, Chinese companies need to shift from simple commodity exports to brand building, localized operations, and sustainable development in order to win long-term competitiveness in the Russian market.

Experts predict that after the implementation of the visa free policy, the number of Russian tourists to China will increase by 20% -30%, and the enthusiasm of Chinese tourists to travel to Russia will continue to rise. With closer personnel exchanges between the two countries, cross-border e-commerce between China and Russia will usher in more development opportunities.

Competition is shifting from a "price war" to a "value war". Only by giving up short-term tax dividends and turning to a long-term approach of product innovation, localized services, and compliant operations can we stand firm in this trade wave.