- Mechanical products lead surge as consumption goods and cars gain traction
- New rail-road-TIR routes cut delivery times by up to a month
Zhejiang’s exports to Russia reached a record 40.15 billion yuan ($5.9 billion) in the first four months of 2026, marking the highest level for the period and outpacing the rest of the nation’s export hubs, according to official statistics.
Specific year-on-year growth for the province as a whole was not disclosed in official reports.
The performance underscores the competitiveness of Zhejiang’s industrial base as well as improving cross-border logistics channels, local media reported.
Mechanical and electrical products remained the backbone of trade, accounting for 229.8 billion yuan, or 57.2% of total exports to Russia.
Household appliances, automobiles and valves all posted double-digit growth.
Consumer goods exports rose 18.7%, with lightweight mobility products such as scooters seeing strong demand amid rising interest in low-carbon transport in Russia.
Yiwu’s fastest-growing market
Yiwu, the trading hub often dubbed “the world’s marketplace for small commodities,” stood out. Exports to Russia rose 56.9% to 3.58 billion yuan in the January-April period, the fastest growth among Yiwu’s major markets.
Clothing, bags, cultural goods and sports equipment all recorded gains above 80%.
On the financial side, many Zhejiang exporters are primarily settling cross-border trade directly in yuan, circumventing dollar-denominated wire transfers.
In typical transactions, Russian buyers convert rubles into yuan and transfer funds via China’s Cross-Border Interbank Payment System (CIPS) or bilateral currency swap arrangements, bypassing SWIFT, the global messaging network that banks use to securely send payment instructions and other financial messages.
This shift accelerated after Russia’s invasion of Ukraine and the resulting strain on Russia’s access to Western financial systems.
Payments received by Chinese exporters are credited directly through domestic banks, reducing reliance on dollar-based clearing channels.
Geely ranked 4th
China’s auto brands have also expanded their presence in Russia, now holding a combined 41% market share.
Zhejiang’s Geely Holdings ranks second among Chinese brands and fourth overall in the market, with 6,788 units sold in April 2026 and a 5.8% share, behind Lada (27.1%), Haval (14%) and Tenet (10.2%).
Logistics improvements have further supported export growth. The China-Europe Railway Express route from Yiwu recorded a 41.1% increase in exports to Russia in the first four months, while a new integrated “rail-and-TIR” system in Jinhua is speeding up delivery.
Faster logistics
TIR stands for Transports Internationaux Routiers, French for International Road Transport. It is an international customs transit system that allows goods to move across multiple countries in sealed vehicles with simplified border inspections, reducing delays and paperwork.
Businesses say the integrated model can shorten delivery cycles by more than a month compared with conventional international rail freight.
