If the two countries cannot resolve the market shutdown properly, their strategic and cooperative partnership will lose its base of non-governmental cooperation. This bilateral relationship should meet not only strategic interests, but also the practical interests and livelihoods of their peoples.

Solutions

Beijing has already dispatched a delegation headed by Vice Minister of Commerce Gao Hucheng to Russia for negotiations regarding the closure. The two sides negotiated a series of agreements on the issue, including a framework for building a large Chinese trade center in Moscow. This meeting gave tens of thousands of Chinese merchants in Russia reason for optimism.

But soon after, the Russian side reneged on its promise, denying the possibility of such a Chinese trade center in downtown Moscow. It seems clear that the common understanding was meant to ease tensions while comforting Chinese merchants.

To solve the problem at its roots and guarantee the healthy development of this private sector trade, the Russians must perfect their market orders step-by-step, while Chinese merchants must do their business in full accordance with current Russian regulations.

Although Russia has generally altered the nature of its market economy mechanisms after a decade of reforms, its flexibility remains limited.

The gray customs clearance is a notable reflection of current aspects of Moscow's foreign trade. Though formulated when Russia was shifting its economic policies amid shortages of daily necessities, times have changed and it is no longer needed.

But closing a single market itself cannot root out gray customs clearance, because the soil on which it grows is still fertile in Russia. Besides, the problem of gray customs clearance can hardly be terminated within a short time due to the complicated economic situation and the furious fighting among different interests groups in Russia.

The latest report issued by the World Economic Forum, a non-governmental entity, categorized Russia as having one of the most closed trading environments in the world—putting Russia's trade mechanism under the global spotlight. To cut the gray customs clearance problem at its core, Russia's tariff level will have to be lowered, thus standardizing the country's trade order. None of these will be realized, however, until Russia joins the World Trade Organization.

Likewise, Chinese merchants in Russia must change their ways and do business in accordance with Russian laws and regulations to accommodate growing risks.

The shutdown of the Cherkizovsky Market will inevitably influence bilateral trade for some time to come, especially against the backdrop of the international financial crisis and recession.

But if Beijing and Moscow can appreciate the closure as an opportunity to strengthen cooperation, starting customs cooperation mechanisms and establishing a normal trade order, bilateral non-governmental trade will benefit from the incident eventually.

The author is the director of Research Center of Russian Studies with Renmin University of China