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Russia-China trade could exceed $40 bln in 2007 - dep. PM

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HANGZHOU, September 28 (RIA Novosti) - Russia's deputy prime minister said Friday Russian-Chinese trade could double next year exceeding $40 billion, but voiced concerns about the imbalance and commodity structure.

Speaking at an inter-government commission session in eastern China preparing regular meetings between the prime ministers, Alexander Zhukov said: "Against the backdrop of considerable progress in trade and business cooperation, certain disproportions have surfaced."

Trade between the two fast-growing nations increased 43% to $28.6 billion in 2006 and hit $16.5 billion in the first six months of this year, up 40% year-on-year.

Chinese exports traditionally include inexpensive clothes, consumer electronics, and manufacturing equipment. But the share of high-tech products has increased dramatically in the last two years - to 24% of the total.

Russia has also announced plans to diversify exports to the Asian giant by adding high-tech equipment to its traditional export commodities, oil and gas, timber, pulp and paper, and military equipment.

But Zhukov also urged Russian and Chinese companies to complete talks on natural gas supplies to the energy-hungry Asian giant.

The two countries signed a protocol to supply 30 and 38 billion cubic meters of gas from fields in the northeast Urals and East Siberia, known as the western and eastern routes respectively, from 2011 to 2020. But Russia's Gazprom and China's CNPC oil and gas corporation have so far failed to come to terms on the price.

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