Packing up the suitcase trade

A FERRIS wheel visible from the Russian bank turns alluringly on the low island of Daheihe on the Chinese side of the Amur river. But the main attraction is the Daheihe Island International Trading City, with its bright ferry terminal and multi-level trading hall. Russian traders used to flock across the border to stuff their suitcases with cheap Chinese goods. Yet that trade, which long sustained the nearby Chinese city of Heihe, has hit a rough patch. Inside the vast trading hall stall-keepers spend more time knitting, napping and playing cards than they do making deals.

Shi Ying, a purveyor of medicines, tea, cosmetics and knick-knacks, blames the drop in value of Russia’s currency. Just over a year ago 100 roubles bought more than 18 yuan (about $3), but today they buy fewer than ten. The Russian economy has been hit by slumping prices for oil and gas, and by Western sanctions following Russia’s invasion of Crimea in 2014 and meddling in Ukraine. Russians, Ms Shi says, “have no money, it’s that simple.”