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Monday 29.05.2017 | Name days: Raivis, Raivo, Maksis
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Opinion: risks for Latvian-Chinese cooperation based on difference in available resources

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«There is no reason to doubt the claim that Chinese businessmen are interested the most in fast, cheap and safe container transports to Europe in Latvia,» – Kapitāls magazine writes, adding that risks for this cooperation lie in the difference between resources available to the two countries.

Transportation costs and speed usually depend on the transport type. Marine transports remain the most popular form of transport for cargoes. Railway transports are in the middle between air transports and marine transports price-wise.

Kapitāls notes that attractiveness of container trains in the eyes of transporters depends on tariffs and conditions. Information regarding Riga’s economic attractiveness is controversial. Businesses involved in it have expressed readiness to prepare attractive offers.

«To improve competitiveness of transport costs, trains headed back to China should not be empty. The objective is hard because China’s trade balance with countries in Baltics is positive. In addition, Scandinavian businessmen would be prepared to refuse current transport solutions after receiving good offers,» – Kapitāls explains.

The magazine mentions that exports of wood materials could serve as a partial solution. Complications with ensuring cargoes for the trip back, however, could serve as a major problem for the business sector. Thanks to favourable geographical location, Latvia has good chances of becoming a hub for goods headed to Scandinavia and Baltic States, maybe even Russia’s north-west regions, Belarus and other places.

One of the risks for Latvian-Chinese risks is the enormous difference between resources available to the two countries. The Chinese can buy everything they might find useful in Latvia and create a business there under favourable conditions. Other noteworthy risks that stand in the way of forming mutually beneficial relations include excessive bureaucracy in state and international organizations, as well as other countries aiming to satisfy transports of Chinese goods, the magazine reports.

Kapitāls believes cooperation for development is an important matter to consider for future relations. There are many aspects, including the increase of exports to China, that are out of the hands of cargo transporters. To resolve those problems as efficiently as possible, it is necessary to secure organized work of state institutions, companies and business organizations.

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