Business booms on Russian border

Pillar industry

Russia's annexation of Crimea in 2014 saw the European Union and the United States impose sanctions on Russian banks and firms, including its state-owned oil companies and arms manufacturers. Russia responded by banning food imports from EU countries and the US.

While it was good news for grocers in China, it was not good news for Chen. "The sanctions resulted in the collapse of the rouble and the country's financial crisis," he said. "Russians reduced their consumption, and those who exported clothes and cars there all sustained losses.

"Now, we're concentrating on our original business - importing timber from Russia and selling it at home and abroad. It turns out it has become a pillar industry in our city."

Chen said the city's timber imports had risen by an average of 1 million cubic meters a year over the past five years.

"This is the best time for the two countries," he said. "Russia has resources and we have processing skills and facilities. Russians are all careful not to 'drain the pond to catch the fish', so they don't worry about the depletion of natural resources."

Yu Hang, deputy manager of Huasheng Guoyun Logistics, said the harbor in Vladivostok is a gateway for Mudanjiang to explore more commercial opportunities.

"The overland distance from Mudanjiang to Russia's harbor is much shorter than to other harbor cities in China," he said.

"Since marine transportation is far cheaper than inland routes, we would cut the costs substantially if we shipped goods via Vladivostok harbor to Chinese cities.

"In that case, products from not only Mudanjiang but also nearby areas such as Harbin, in Heilongjiang, and Jilin province could be sold in a more convenient way.

"Moreover, we could ship goods to Japan, South Korea and Western countries via Russia's port. The transport pattern has been put into regular use since 2012. It is not yet large-scale, but it will be a trend."

Tian Xuefei contributed to this story.